Value Investing

Vladimir Dimitrov, CFA

Equity Bottom-Up

Mondelez International / Equity Bottom-Up

<ul>
<li>Mondelez has outperformed the market both on an absolute and risk-adjusted basis.</li>
<li>The company is in a very good position to improve margins to higher levels than currently expected.</li>
<li>The stock remains as one of my favourite picks in the sector. The stock is one of the company's favourite picks.</li>
</ul>


Mondelez has outperformed the market both on an absolute and risk-adjusted basis.
The company is in a very good position to improve margins to higher levels than currently expected.
The stock remains as one of my favourite picks in the sector. The stock is one of the company's favourite picks.


Mondelez: Ignore The Noise And Invest In Strong And Well-Managed Brands

<ul>
<li>Colgate-Palmolive's share price performance over the past few years is not as grim as it might look on the surface.</li>
<li>Improving gross margin remains the only game in town for future shareholder returns, according to the company.</li>
<li>Colgate-Palmolive Company (<span class="ticker-hover-wrapper">NYSE:CL</span>) is rarely seen as an attractive investment opportunity as the company significantly underperformed the S&amp;P 500 and the consumer staples sector in particular over the past 5-year period.</li>
</ul>


Colgate-Palmolive's share price performance over the past few years is not as grim as it might look on the surface.
Improving gross margin remains the only game in town for future shareholder returns, according to the company.
Colgate-Palmolive Company (NYSE:CL) is rarely seen as an attractive investment opportunity as the company significantly underperformed the S&amp;P 500 and the consumer staples sector in particular over the past 5-year period.


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

Consumer Staples Select Sector SPDR Fund / Technical Analysis

Consumer Staples Select Sector SPDR Fund (XLP US)

<ul>
<li>Since late November we have been discussing our expectations for a pullback, while recommending shifting exposure to defensives (Staples, Utilities, Health Care) and/or taking profits.</li>
<li>The pullback is finally happening following breaks below 3910 support on the S&amp;P 500, $177.50 support on the Russell 2000 (IWM), and $279 support on the Nasdaq 100 (QQQ). </li>
<li>These levels are now resistance, while major resistance remains at 200-dayMAs/YTD downtrends. Stick with defensives/cash as we believe a test of the YTD lows on the aforementioned indexes is likely.</li>
</ul>


Since late November we have been discussing our expectations for a pullback, while recommending shifting exposure to defensives (Staples, Utilities, Health Care) and/or taking profits.
The pullback is finally happening following breaks below 3910 support on the S&amp;P 500, $177.50 support on the Russell 2000 (IWM), and $279 support on the Nasdaq 100 (QQQ). 
These levels are now resistance, while major resistance remains at 200-dayMAs/YTD downtrends. Stick with defensives/cash as we believe a test of the YTD lows on the aforementioned indexes is likely.


Upgrading Staples and Health Care to Overweight; Stay Defensive, Expecting Test of YTD Lows on SPX

US/Europe Event-Driven Analyst

John DeMasi

Event-Driven

<ul>
<li>Cargill/Continental Grain announced joint acquisition of Sanderson Farms on 9th August 2021 for $203/share cash.</li>
<li>Poultry Market in the USA is not concentrated; deal presents little traditional competition risk.</li>
<li>Recent accusations of price-fixing in poultry sector present political risk, but SAFM is cheap even if deal were to get blocked.</li>
</ul>


Cargill/Continental Grain announced joint acquisition of Sanderson Farms on 9th August 2021 for $203/share cash.
Poultry Market in the USA is not concentrated; deal presents little traditional competition risk.
Recent accusations of price-fixing in poultry sector present political risk, but SAFM is cheap even if deal were to get blocked.


Sanderson Farms (SAFM US) – Pending Takeover Offers Favourable Risk/Reward

<ul>
<li>Over the past few years Procter &amp; Gamble has been outperforming its peers in the Home &amp; Personal Care space.</li>
<li>Sustainable improvements in profitability appear to be the main reason for this dynamic.</li>
<li>In the coming years, however, P&amp;G would more likely trail sector returns, rather than outperforming them.</li>
</ul>


Over the past few years Procter &amp; Gamble has been outperforming its peers in the Home &amp; Personal Care space.
Sustainable improvements in profitability appear to be the main reason for this dynamic.
In the coming years, however, P&amp;G would more likely trail sector returns, rather than outperforming them.


Procter & Gamble - Set Your Expectations Right

United States

Consumer Staples Select Sector SPDR Fund is an exchange-traded fund incorporated in the USA. The ETF tracks The Consumer Staples Select Sector Index. The ETF holds large cap consumer staples stocks. Its holdings include cosmetic and personal care, pharmaceuticals, soft drinks, tobacco and food products. The ETF weights the holdings using a market capitalization methodology

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Consumer Staples Select Sector SPDR Fund (XLP US)

Mondelez: Ignore The Noise And Invest In Strong And Well-Managed Brands

Mondelez has outperformed the market both on an absolute and risk-adjusted basis. The company is in a very good position to improve margins to...

Vladimir Dimitrov, CFA

Colgate-Palmolive: The Only Game In Town

Colgate-Palmolive Company (NYSE:CL) is rarely seen as an attractive investment opportunity as the company significantly underperformed the S&P 500

Vladimir Dimitrov, CFA

Upgrading Staples and Health Care to Overweight; Stay Defensive, Expecting Test of YTD Lows on SPX

Since late November we have discussed our expectations for a pullback, recommending shifting exposure to defensives $XLP $XLV $XLU and/or taking...

Vermilion Research

Sanderson Farms (SAFM US) – Pending Takeover Offers Favourable Risk/Reward

Chicken on Sale! Sanderson Farms trades at much lower multiples than peers and has a pending takeover which could close within months. Even if the...

John DeMasi

Procter & Gamble - Set Your Expectations Right

Over the past few years Procter & Gamble has been outperforming its peers in the Home & Personal Care space. Sustainable improvements in...

Vladimir Dimitrov, CFA

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