China, Emerging Markets

Ryan Soh 苏祥发

Equity Bottom-Up

In this Part 1 of a two-part series, I size up Baidu by market cap and market share, and get dragged into sizing up Alibaba as well. Baidu's market cap is $86bn, roughly 1/8th of Google's, and 1/5th of Alibaba or Tencent. Baidu is losing market share, if we define it as advertising revenue. Most of Alibaba's revenue comes from advertising, so this makes them direct competitors - and Alibaba's winning.Alibaba is a monster. It's operating difficulties abroad should be balanced against dominance at home.

In this Part 1 of a two-part series, I size up Baidu by market cap and market share, and get dragged into sizing up Alibaba as well. Baidu's market cap is $86bn, roughly 1/8th of Google's, and 1/5th of Alibaba or Tencent. Baidu is losing market share, if we define it as advertising revenue. Most of Alibaba's revenue comes from advertising, so this makes them direct competitors - and Alibaba's winning.Alibaba is a monster. It's operating difficulties abroad should be balanced against dominance at home.

Sizing up Baidu (And Alibaba), Part 1 of 2

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Thematic (Sector/Industry)

<ul><li><div class="content-highlight">
<a href="https://www.smartkarma.com/entities/409" target="_blank" data-smartkarma-citation="entities:409:1">Amazon.com Inc (AMZN US)</a> announced today that it will start the reverse direct e-commerce purchase business in Korea. What this basically entails is that Amazon will facilitate companies in Korea that want to sell their products globally online through the Amazon website. This should help hundreds of Korean companies and individuals that want to increase their exports to overseas markets. Amazon's reverse direct e-commerce market is also complementary to Amazon's AWS service that is already…</div></li></ul>


Amazon.com Inc (AMZN US) announced today that it will start the reverse direct e-commerce purchase business in Korea. What this basically entails is that Amazon will facilitate companies in Korea that want to sell their products globally online through the Amazon website. This should help hundreds of Korean companies and individuals that want to increase their exports to overseas markets. Amazon's reverse direct e-commerce market is also complementary to Amazon's AWS service that is already…

Amazon Starts the Reverse Direct E-Commerce Purchase Business in Korea

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

Short-term rotation is underway. FANG stocks and parts of Tech, both long-term leaders, have become a short-term source of funds. Fortunately, this weakness is confined, resulting in sector and group rotation, not widespread selling. There is still plenty to like about this market, including areas we have shied away from for most of the year, such as energy and retailers.  This report highlights investment opportunities within the energy sector.

Short-term rotation is underway. FANG stocks and parts of Tech, both long-term leaders, have become a short-term source of funds. Fortunately, this weakness is confined, resulting in sector and group rotation, not widespread selling. There is still plenty to like about this market, including areas we have shied away from for most of the year, such as energy and retailers.  This report highlights investment opportunities within the energy sector.

U.S. Equity Strategy: Tactical Shift in Favoring Value over Growth; Buy Energy; Retailers Bottoming

Asian Equities Analyst, Logistics & Transport, Tracking Traffic

Daniel Hellberg

Asian Equities Analyst, Logistics & Transport

US grocery store chain Albertsons (private) announced on Wednesday evening that it would buy meal kit specialist Plated (also private) for a reported US$175-200 mn. Few financial details were revealed, but we believe Albertsons is buying Plated for around 1.0x trailing 12-month revenues. The deal will give Plated, the third-largest meal kit company in the US behind <a href="https://www.smartkarma.com/entities/24175" target="_blank" data-smartkarma-citation="entities:24175:1">Blue Apron Holdings, Inc. (APRN US)</a> and private, Berlin-based HelloFresh, a network of over 2,200 physical stores through which it…

US grocery store chain Albertsons (private) announced on Wednesday evening that it would buy meal kit specialist Plated (also private) for a reported US$175-200 mn. Few financial details were revealed, but we believe Albertsons is buying Plated for around 1.0x trailing 12-month revenues. The deal will give Plated, the third-largest meal kit company in the US behind Blue Apron Holdings, Inc. (APRN US) and private, Berlin-based HelloFresh, a network of over 2,200 physical stores through which it…

US Grocery Giant Albertsons Buys Meal Kit Maker Plated, Suggesting A Path Forward For Blue Apron

IPO and L/S equity, 2015 Starmine top stock picker, Global Equity Research Ltd

Rickin Thakrar

IPO and L/S equity, 2015 Starmine top stock picker

The following is a contrarian negative view on Amazon, particularly as it relates to its recent acquisition of Whole Foods. We argue there are five negative issues for Amazon/Whole Foods in the short to medium term, which are as follows:<ol><li>Whole Foods may lose in a price war with Trader Joe’s/Aldi</li><li>We estimate the Whole Foods acquisition could drive $12bn in shareholder value destruction</li><li>Whole Foods could end up with 0% margin and initial cost savings are limited in our view</li><li>Amazon’s reversion to physical space suggests a pure online grocery model is unlikely to succeed</li><li>Amazon’s cash flow could be subdued over the next 18 months</li></ol>

The following is a contrarian negative view on Amazon, particularly as it relates to its recent acquisition of Whole Foods. We argue there are five negative issues for Amazon/Whole Foods in the short to medium term, which are as follows:Whole Foods may lose in a price war with Trader Joe’s/AldiWe estimate the Whole Foods acquisition could drive $12bn in shareholder value destructionWhole Foods could end up with 0% margin and initial cost savings are limited in our viewAmazon’s reversion to physical space suggests a pure online grocery model is unlikely to succeedAmazon’s cash flow could be subdued over the next 18 months

United States

Amazon.com, Inc. is an online retailer that offers a wide range of products. The Company's products include books, music, videotapes, computers, electronics, home and garden, and numerous other products.  Amazon offers personalized shopping services, Web-based credit card payment, and direct shipping to customers.

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Amazon (AMZN US)

Sizing up Baidu (And Alibaba), Part 1 of 2

In this Part 1 of a two-part series, I size up Baidu by market cap and market share, and get dragged into sizing up Alibaba as well. Baidu's market...

Ryan Soh 苏祥发

Amazon Starts the Reverse Direct E-Commerce Purchase Business in Korea

Amazon.com Inc (AMZN US) announced today that it will start the reverse direct e-commerce purchase business in Korea. What this basically entails...

Douglas Kim

U.S. Equity Strategy: Tactical Shift in Favoring Value over Growth; Buy Energy; Retailers Bottoming

Short-term rotation is underway. FANG stocks and parts of Tech, both long-term leaders, have become a short-term source of funds. Fortunately, this...

Vermilion Research

US Grocery Giant Albertsons Buys Meal Kit Maker Plated, Suggesting A Path Forward For Blue Apron

US grocery store chain Albertsons (private) announced on Wednesday evening that it would buy meal kit specialist Plated (also private) for a...

Daniel Hellberg

Amazon/Whole Foods: The Bear Case

The following is a contrarian negative view on Amazon, particularly as it relates to its recent acquisition of Whole Foods. We argue there are five...

Rickin Thakrar

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