Differentiated global TMT & Internet Research

New Street Research Insights

New Street Research

Research is provided by our team of experienced analysts. Our work is idea driven, based on independence of thought, sector expertise, and firmly focused on fundamentals and valuation of telecoms and internet names globally. New Street is headquartered in London with offices in New York, Singapore and Australia. 

New Street Research is an independent, partner-owned, research firm specialising in equity and debt research. Our equity research embraces the following sectors:

Pan European Telecom Services and Cable
US Telecoms, Cable, Satellite and Towers
Global Emerging Market Telecoms
Japan Telecoms
Asian Internet
Pan European Healthcare
US Healthcare
Japanese Healthcare

We also provide debt research on:
Pan European Telecom Services and Cable

Equity Bottom-Up

We note that <a href="https://www.smartkarma.com/entities/8922" target="_blank" data-smartkarma-citation="entities:8922">Bharti Infratel Ltd</a> (Infratel) reported disappointing growth and margins despite a rising tower sharing factor. While evidence remains sketchy we are concerned that Infratel may be losing its ability to price at a premium at the same time that costs are rising due to higher ground rents. We see potential for a margin squeeze. Investors have played the rising data story in India through Infratel. They have avoided the uncertainty created by the coming launch of Reliance Jio (Jio) which has bedeviled the operators. However, we believe any good news on the data front is more than fully priced in and are concerned about cost increases and pricing pressures on earnings. The Indian telecoms market remains of real interest to us at New Street Research. It is now rapidly consolidating and domestic returns have shown signs of recovery. Scale is important in a data world and we see <a href="https://www.smartkarma.com/entities/953" target="_blank" data-smartkarma-citation="entities:953">Bharti Airtel Ltd</a> (Bharti) as the key play, notwithstanding its African issues or the much delayed arrival of Jio.

We note that Bharti Infratel Ltd (Infratel) reported disappointing growth and margins despite a rising tower sharing factor. While evidence remains sketchy we are concerned that Infratel may be losing its ability to price at a premium at the same time that costs are rising due to higher ground rents. We see potential for a margin squeeze. Investors have played the rising data story in India through Infratel. They have avoided the uncertainty created by the coming launch of Reliance Jio (Jio) which has bedeviled the operators. However, we believe any good news on the data front is more than fully priced in and are concerned about cost increases and pricing pressures on earnings. The Indian telecoms market remains of real interest to us at New Street Research. It is now rapidly consolidating and domestic returns have shown signs of recovery. Scale is important in a data world and we see Bharti Airtel Ltd (Bharti) as the key play, notwithstanding its African issues or the much delayed arrival of Jio.

Chart based progressive global trading strategies, Chart Partners

Thomas Schroeder

Chart based progressive global trading strategies

Chart Partners

Chart Partners objective is to discover medium-term cycle turns and profit opportunities before they unfold, within structural trends while preserving capital with clear degrees of risk. We have real return ideas. 

Markets are dynamic and trading systems must reflect this. It is crucial to determine underlying correlations and lead-lag relationships within global markets and the impact on linked instruments. Our weekly Chartonics product gives you short-term trading strategies that can be applied within the medium and longer term macro trends that are mapped out in our strategy updates. 

Our methodology fuses global market variables and isolates drivers in trends. We specialize in FX, index trade in NY and Asia with a focus on Asian stocks. 

Technical Analysis

Our sell out of Asian longs yesterday was timely. S&amp;P top is in place at 1,940 (futures) after hitting our base case level of 1,938 with risk to 1,950. We failed to short the S&amp;P but now calibrating levels on a bounce to short financials, small caps and the S&amp;P. The fact that we broke below 1,910 implies a top is in place. Weak sector links telegraphing further weakness. Our macro bear targets remains at S&amp;P 1,720 (tactical rise) and then 1,620.<div>S&amp;P 1,875 is a level to stage a recovery back to…</div>

Our sell out of Asian longs yesterday was timely. S&amp;P top is in place at 1,940 (futures) after hitting our base case level of 1,938 with risk to 1,950. We failed to short the S&amp;P but now calibrating levels on a bounce to short financials, small caps and the S&amp;P. The fact that we broke below 1,910 implies a top is in place. Weak sector links telegraphing further weakness. Our macro bear targets remains at S&amp;P 1,720 (tactical rise) and then 1,620.S&amp;P 1,875 is a level to stage a recovery back to…

Public Relations and Social Media Manager, Dechert LLP

Peggy Heffner

Public Relations and Social Media Manager

Dechert is a global specialist law firm

Dechert LLP

Dechert is a global specialist law firm.
Focused on sectors with the greatest complexities, legal intricacies and highest regulatory demands, we excel in delivering practical commercial judgment and deep legal expertise for high-stakes matters.

Our work is widely recognized. We have 20 standout practices noted by Chambers Global, including global-wide rankings for arbitration, corporate investigations, anti-corruption, investment funds and life sciences. Named Antitrust Team of the Year, Chambers USA commends our “accomplished group” as “routinely sought after to handle some of the most significant litigation and transactions in the antitrust world.” 

In an increasingly challenging environment, clients look to us to serve them in ways that are faster, sharper and leaner without compromising excellence. We developed a first-of-its kind legal project management department, which uses technology, people and processes to drive efficiency and deliver value for our clients.

We are innovators. Dechert ranked #7 in the Financial Times’ Top North American Innovative Law Firms. Financial Times also recognizes us among the Top European Innovative Law Firms and highly commends World Compass, our marketing compliance service, which offers investment firms advice in more than 100 jurisdictions.

Thematic (Sector/Industry)

The U.S. Securities and Exchange Commission (Commission) on December 11, 2015 proposed new Rule 18f-4 (Proposed Rule) under the Investment Company Act of 1940 (1940 Act) and amendments to certain proposed forms. The proposal relates to the use of derivatives and other transactions by registered investment companies – open-end funds, including exchange-traded funds (ETFs), and closed-end funds – and business development companies (BDCs) (collectively, funds).

The U.S. Securities and Exchange Commission (Commission) on December 11, 2015 proposed new Rule 18f-4 (Proposed Rule) under the Investment Company Act of 1940 (1940 Act) and amendments to certain proposed forms. The proposal relates to the use of derivatives and other transactions by registered investment companies – open-end funds, including exchange-traded funds (ETFs), and closed-end funds – and business development companies (BDCs) (collectively, funds).

SEC Proposes Significant New Restrictions on the Use of Derivatives (Etc) By Registered Funds

Research and consultancy, Tabbush Report

Daniel Tabbush

Research and consultancy

Tabbush Report

We provide research and consultancy on Asian banks. Our focus is on what we call “Asian bank research, without the noise.” We are interested in the most critical swing-factors for banks, the NPL and credit cycle, and where we believe there is a gap between perception and reality. We often focus on the less studied components of bank financial statements.  Our research is highly thematic, sometimes examining unlisted banks and companies as a window on mainstream banks. 

Being independent allows us to look at smaller banks, often overlooked by others. Analysis of BIS bank guidelines in the context of Asia, is also a focal point, while we also analyze global banks operating in the region. We use what we believe is the most comprehensive, reliable financials database, SNL Financial. S&P Capital IQ augments our database, with corporate data and CEIC, with economics. 

Asian bank research, without the noise.

In DBS’s year 2014 annual report it defines market risk on page 90 as follows: “Market risk is the risk is the risk of loss arising from adverse changes in interest rates, foreign exchange rates, equity prices, credit spreads and commodity prices, as well as their correlations and implied volatilities.” <figure class="editor-figure"><img src="https://static-prod.smartkarma.com/images/media/000/004/663/original/Market%20Risk.png?1450243661" class="editor-image img-responsive" data-smartkarma-image-id="4663"><figcaption class="figcaption">Source: DBS 2014 Annual Report p90</figcaption></figure>In the bank’s 2012 annual report the definition on page 81 was slightly different: “Market risk affects the economic values of financial instruments held by the…

In DBS’s year 2014 annual report it defines market risk on page 90 as follows: “Market risk is the risk is the risk of loss arising from adverse changes in interest rates, foreign exchange rates, equity prices, credit spreads and commodity prices, as well as their correlations and implied volatilities.” Source: DBS 2014 Annual Report p90In the bank’s 2012 annual report the definition on page 81 was slightly different: “Market risk affects the economic values of financial instruments held by the…

With Radically Lower Oil Prices, Market Risk Assets Is a Focus

Leading Independent Investment Research, Morningstar, Inc.

Morningstar

Leading Independent Investment Research

Morningstar, Inc.

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. We offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors. 

Morningstar provides data on more than 500,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 16 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries, with more than $180 billion in assets under advisement or management as of June 30, 2015. We have operations in 27 countries.

Download the Morningstar Fact Sheet : http://corporate.morningstar.com/US/documents/MarketingFactSheets/AboutMorningstarFactsheet.pdf

<ul><li class="p1">We view high quality shopping centres as benefiting from strong competitive advantages, and generally ascribe narrow economic moat ratings to REITs with better quality shopping malls.</li><li class="p1">However, identifying a quality mall is complex as there are multiple factors impacting how a mall will trade.</li><li class="p1">In terms of sustainable competitive advantage, which underlies Morningstar's Economic Moat methodology, the best placed are large shopping centres dominating their catchment areas, particularly in built-up areas with high population density.</li><li class="p1">The wide range of retailers in one location, along with good transport infrastructure, underpins ongoing shopper foot traffic and hence tenant demand. With demand in the catchment being largely met by a dominant mall, a new entrant would be dissuaded by the high cost of development of a similarly attractive mall, particularly in built-up areas where land prices are high.</li><li class="p1">Incremental demand growth can often be met by expansion of the existing mall, generating strong returns on investment and cementing the incumbent's dominance.</li></ul>Analysts: Tony Sherlock, Adrian Atkins, Todd Lukasik, David Ellis and Stephen Ellis.Full report below the fold....

We view high quality shopping centres as benefiting from strong competitive advantages, and generally ascribe narrow economic moat ratings to REITs with better quality shopping malls.However, identifying a quality mall is complex as there are multiple factors impacting how a mall will trade.In terms of sustainable competitive advantage, which underlies Morningstar's Economic Moat methodology, the best placed are large shopping centres dominating their catchment areas, particularly in built-up areas with high population density.The wide range of retailers in one location, along with good transport infrastructure, underpins ongoing shopper foot traffic and hence tenant demand. With demand in the catchment being largely met by a dominant mall, a new entrant would be dissuaded by the high cost of development of a similarly attractive mall, particularly in built-up areas where land prices are high.Incremental demand growth can often be met by expansion of the existing mall, generating strong returns on investment and cementing the incumbent's dominance.Analysts: Tony Sherlock, Adrian Atkins, Todd Lukasik, David Ellis and Stephen Ellis.Full report below the fold....

Assessing Driver of Moats in Retail Shopping Centres

United States

American Tower Corp. is a real estate investment trust that owns, operates, and develops wireless communications and broadcast towers in the United States. The Company leases antennae sites on multi-tenant towers for a diverse range of wireless communications industries, including personal communications services, paging, and cellular.

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American Tower (AMT US)

Bharti Infratel: Margin Squeeze Coming?

We note that Bharti Infratel Ltd (Infratel) reported disappointing growth and margins despite a rising tower sharing factor. While evidence remains...

New Street Research

Increasing Shorts on Strength

Our sell out of Asian longs yesterday was timely. S&P top is in place at 1,940 (futures) after hitting our base case level of 1,938 with risk...

Thomas Schroeder

SEC Proposes Significant New Restrictions on the Use of Derivatives (Etc) By Registered Funds

The U.S. Securities and Exchange Commission (Commission) on December 11, 2015 proposed new Rule 18f-4 (Proposed Rule) under the Investment Company...

Dechert LLP

With Radically Lower Oil Prices, Market Risk Assets Is a Focus

In DBS’s year 2014 annual report it defines market risk on page 90 as follows: “Market risk is the risk is the risk of loss arising from adverse...

Daniel Tabbush

Assessing Driver of Moats in Retail Shopping Centres

We view high quality shopping centres as benefiting from strong competitive advantages, and generally ascribe narrow economic moat ratings to...

Morningstar, Inc.

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