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

Rotation is alive and well. Once-dormant Sectors and Groups are helping propel the market to new highs. While Tech, the overachiever, continues to lead, we’re finally seeing the Energy  Sector contribute. And other economically sensitive Groups, like Casinos and Engineering &amp; Construction, are bullishly inflecting, confirming the risk-on message. Combined, this is (1) a positive sign for the market, and (2) actionable.In today’s report we highlight ideas within the following Groups: Engineering &amp; Construction, Semiconductors, and Auto Dealers.

Rotation is alive and well. Once-dormant Sectors and Groups are helping propel the market to new highs. While Tech, the overachiever, continues to lead, we’re finally seeing the Energy  Sector contribute. And other economically sensitive Groups, like Casinos and Engineering &amp; Construction, are bullishly inflecting, confirming the risk-on message. Combined, this is (1) a positive sign for the market, and (2) actionable.In today’s report we highlight ideas within the following Groups: Engineering &amp; Construction, Semiconductors, and Auto Dealers.

U.S. Equity Strategy: Cyclicals Continue to Lead; Energy Is Bottoming.

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Capital Markets

<ul><li><a href="https://www.smartkarma.com/entities/23572" target="_blank" data-smartkarma-citation="entities:23572:1">Yellomobile Inc (1243811D KS)</a> is one of the fastest growing and the biggest consolidator of mobile business platforms in Korea. The company was preparing for an IPO last year. Now, the company is preparing for IPOs of its affiliated companies first in 2H 2016. We think that the Yello Mobile itself is likely to complete an IPO sometime in 2017/2018. Yello Mobile is turning itself into an operating holding company. By end of this year, Yello Mobile plans to merge with Yello Shopping Media, a mobile shopping portal operator which the company owns a 100% stake.</li><li>Yello Mobile announced that it is planning IPO of its two affiliated companies first including Future Stream Network and Yello O2O in 2H 2016. Future Stream Networks (also known as Cauly) is one of the most widely used mobile ad networks in Korea.  </li><li>There are two major unicorns in Korea: one is Coupang, the other is Yello Mobile. Yello Mobile was valued at US$4 billion in its most recent private market valuation, which would place the company in the second place behind Coupang in terms of highest private market funding among IT companies in Korea. </li><li>One of the major advantages of Yello Mobile has been its highly aggressive, fast pace acquisition mode to outbid on promising startup app companies in Korea. The M&amp;A market for Korea's venture/IT startups is much smaller than the developed US/Silicon Valley market and this is often a buyers market. The chaebols in Korea often move at snail's pace and the capital markets are not as well developed in terms of investing in venture/IT startups, despite many promising startup companies.  </li></ul><ul><li>The company has five major app categories: 1) Shopping, 2) Media, 3) AdTech, 4) Travel, and 5)O2O (Offline to Online). It also has a separate Yello Financial Group business, which invests in financial technology companies. Some of the better known branded companies within YelloMobile include CooCha (mobile commerce), Pikicast (mobile curating app), RecoBell (provides personalized recommendations for mobile consumers using big data), Alammon (a morning call service), 1km (a social dating application), and Emotion (a web agency).</li><li>The company has experienced an explosive sales growth, from 9 billion won in 2013 to 318.2 billion won in 2015. It generated 227.1 billion won in sales in 1H16, up 67.6% YoY. The company expects to generate about 500 billion won in sales in 2016, up 57% YoY. What's impressive about the company's financials is not just the explosive sales growth, but also the decline in its operating losses. For example, its operating losses declined to 5.7 billion won in 1H16, down from 41.3 billion won in 1H15. This is a testament of the company's increasing economies of scale.</li></ul>

Yellomobile Inc (1243811D KS) is one of the fastest growing and the biggest consolidator of mobile business platforms in Korea. The company was preparing for an IPO last year. Now, the company is preparing for IPOs of its affiliated companies first in 2H 2016. We think that the Yello Mobile itself is likely to complete an IPO sometime in 2017/2018. Yello Mobile is turning itself into an operating holding company. By end of this year, Yello Mobile plans to merge with Yello Shopping Media, a mobile shopping portal operator which the company owns a 100% stake.Yello Mobile announced that it is planning IPO of its two affiliated companies first including Future Stream Network and Yello O2O in 2H 2016. Future Stream Networks (also known as Cauly) is one of the most widely used mobile ad networks in Korea.  There are two major unicorns in Korea: one is Coupang, the other is Yello Mobile. Yello Mobile was valued at US$4 billion in its most recent private market valuation, which would place the company in the second place behind Coupang in terms of highest private market funding among IT companies in Korea. One of the major advantages of Yello Mobile has been its highly aggressive, fast pace acquisition mode to outbid on promising startup app companies in Korea. The M&amp;A market for Korea's venture/IT startups is much smaller than the developed US/Silicon Valley market and this is often a buyers market. The chaebols in Korea often move at snail's pace and the capital markets are not as well developed in terms of investing in venture/IT startups, despite many promising startup companies.  The company has five major app categories: 1) Shopping, 2) Media, 3) AdTech, 4) Travel, and 5)O2O (Offline to Online). It also has a separate Yello Financial Group business, which invests in financial technology companies. Some of the better known branded companies within YelloMobile include CooCha (mobile commerce), Pikicast (mobile curating app), RecoBell (provides personalized recommendations for mobile consumers using big data), Alammon (a morning call service), 1km (a social dating application), and Emotion (a web agency).The company has experienced an explosive sales growth, from 9 billion won in 2013 to 318.2 billion won in 2015. It generated 227.1 billion won in sales in 1H16, up 67.6% YoY. The company expects to generate about 500 billion won in sales in 2016, up 57% YoY. What's impressive about the company's financials is not just the explosive sales growth, but also the decline in its operating losses. For example, its operating losses declined to 5.7 billion won in 1H16, down from 41.3 billion won in 1H15. This is a testament of the company's increasing economies of scale.

Yello Mobile IPO Preview: Part I (A Unicorn Consolidator of Mobile Apps in Korea)

United States

AutoNation, Inc. retails, finances, and services new and used vehicles.  The Company also provides other related services and products, such as the sale of parts and accessories, extended service contracts, aftermarket automotive products, and collision repair services.  AutoNation operates throughout the United States.

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Autonation Inc (AN US)

U.S. Equity Strategy: Cyclicals Continue to Lead; Energy Is Bottoming.

Rotation is alive and well. Once-dormant Sectors and Groups are helping propel the market to new highs. While Tech, the overachiever, continues to...

Vermilion Research

Yello Mobile IPO Preview: Part I (A Unicorn Consolidator of Mobile Apps in Korea)

Yellomobile Inc (1243811D KS) is one of the fastest growing and the biggest consolidator of mobile business platforms in Korea. The company was...

Douglas Kim

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