Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>Frontline Ltd had a good financial performance in Q4 2023 even though they didn't witness the aggressive bull market they were hoping for.</li><li>They achieved positive returns on their VLCC fleet, recording $42,300 per day, $45,700 per day on their Suezmax, and $42,900 per day on their LR2/Aframax fleet.</li><li>The strong performance of the Suezmax and LR2 markets led to higher TCNE rates which benefited their year-end earnings.</li></ul>

Frontline Ltd had a good financial performance in Q4 2023 even though they didn't witness the aggressive bull market they were hoping for.They achieved positive returns on their VLCC fleet, recording $42,300 per day, $45,700 per day on their Suezmax, and $42,900 per day on their LR2/Aframax fleet.The strong performance of the Suezmax and LR2 markets led to higher TCNE rates which benefited their year-end earnings.

Frontline Ltd.: Initiation Of Coverage - How Are They Impacted By The Rising Volatility & Firming Trends In The Market? - Major Drivers

Asia L/S Equity PM/Macro/Thematic Idea Generation

Rikki Malik

Cosco Shipping Energy Transportation Co. Ltd. (H) / Equity Bottom-Up

Cosco Shipping Energy Transportation Co. Ltd. (H)

<ul>
<li>The Supply/ Demand imbalance in tankers will persist for longer, supporting earnings</li>
<li>A beneficiary of increased global tensions and higher oil and gas prices</li>
<li>Proposed Stock option scheme incentives management in the right way</li>
</ul>


The Supply/ Demand imbalance in tankers will persist for longer, supporting earnings
A beneficiary of increased global tensions and higher oil and gas prices
Proposed Stock option scheme incentives management in the right way


Cosco Shipping Energy 1138.HK - Higher for Longer

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

<ul>
<li>The SPX is at 4165-4200 support, and the Nasdaq 100 (QQQ) is at $350-$355 support. No "decisive" breakdowns quite yet as supports show signs of holding.</li>
<li>Russell 2000 (IWM) is testing 1.5-year support at $162-$163, making this a logical spot for small-caps to bounce and an attractive risk/reward for buyers</li>
<li>Continue to see signs of breadth possibly bottoming-out. Both the SPX and Russell 2000 and the % of stocks above their 50-day and 20-day MAs display bullish breadth divergences.</li>
</ul>


The SPX is at 4165-4200 support, and the Nasdaq 100 (QQQ) is at $350-$355 support. No "decisive" breakdowns quite yet as supports show signs of holding.
Russell 2000 (IWM) is testing 1.5-year support at $162-$163, making this a logical spot for small-caps to bounce and an attractive risk/reward for buyers
Continue to see signs of breadth possibly bottoming-out. Both the SPX and Russell 2000 and the % of stocks above their 50-day and 20-day MAs display bullish breadth divergences.


Bullish Breadth Divergences Persist; Russell 2000 Testing 1.5-Year Support; Buys in Education Svcs

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Should the nominated directors, to be voted on by <a href="https://www.smartkarma.com/entities/eoflow-co-ltd" target="_blank" data-smartkarma-citation="entities:36100:1" rel="noopener">EOFlow (294090 KS)</a>'s shareholders at the November EGM, include <a href="https://www.smartkarma.com/entities/medtronic-plc" target="_blank" data-smartkarma-citation="entities:14982:1" rel="noopener">Medtronic Plc (MDT US)</a> executives, then game on.</li>
<li>
<a href="https://www.smartkarma.com/entities/fast-retailing-co-ltd" target="_blank" data-smartkarma-citation="entities:751:1" rel="noopener">Fast Retailing (9983 JP)</a> STILL has a Nikkei 225 problem, which means it probably has to underperform Nikkei 225 slightly between now and the Base Date (31 July 2024).</li>
<li>
<a href="https://www.smartkarma.com/entities/jmdc-inc" target="_blank" data-smartkarma-citation="entities:28673:1" rel="noopener">JMDC (4483 JP)</a> has been one of the more annoying partial tenders out there. Even post-facto, it is tough to know what the disposition was. This is extraordinarily vexing.</li>
</ul>


Should the nominated directors, to be voted on by EOFlow (294090 KS)'s shareholders at the November EGM, include Medtronic Plc (MDT US) executives, then game on.

Fast Retailing (9983 JP) STILL has a Nikkei 225 problem, which means it probably has to underperform Nikkei 225 slightly between now and the Base Date (31 July 2024).

JMDC (4483 JP) has been one of the more annoying partial tenders out there. Even post-facto, it is tough to know what the disposition was. This is extraordinarily vexing.


Last Week In Event SPACE: EOFlow, Fast Retailing, JMDC, Origin Energy

European Event-Driven Analyst

Jesus Rodriguez Aguilar

<ul>
<li>CMB and <a href="https://www.smartkarma.com/entities/frontline-ltd-bermuda-95b052f6-1b1b-4c75-87d8-8286563cb605" target="_blank" data-smartkarma-citation="entities:15531:1" rel="noopener">Frontline Ltd (FRO US)</a> smoke the peace pipe: CMB will buy Frontline out of <a href="https://www.smartkarma.com/entities/euronav-nv" target="_blank" data-smartkarma-citation="entities:21077:1" rel="noopener">Euronav NV (EURN US)</a> at $18.43/share (25% premium) and agree to Euronav selling 24 VLCCs to FRO.</li>
<li>After an EGM gives the green light, CMB will launch a mandatory $18.43/share cash offer for Euronav. The three-way transaction is fairly priced (1.0x P/NAV) for all players, including the Euronav minorities.</li>
<li>There shouldn't be any antitrust issues. Spread is 4.02%/7.66% (gross/annualised assuming settlement by 30 April 2024). Recommendation is long and tender (there won't be any squeeze-out).</li>
</ul>


CMB and Frontline Ltd (FRO US) smoke the peace pipe: CMB will buy Frontline out of Euronav NV (EURN US) at $18.43/share (25% premium) and agree to Euronav selling 24 VLCCs to FRO.
After an EGM gives the green light, CMB will launch a mandatory $18.43/share cash offer for Euronav. The three-way transaction is fairly priced (1.0x P/NAV) for all players, including the Euronav minorities.
There shouldn't be any antitrust issues. Spread is 4.02%/7.66% (gross/annualised assuming settlement by 30 April 2024). Recommendation is long and tender (there won't be any squeeze-out).


Norway

Frontline PLC owns a fleet of very large crude carriers and tankers that transport crude oil and oil products between ports. The Company's vessels are managed by ship management companies. Frontline conducts activities worldwide.

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Frontline (FRO US)

Frontline Ltd.: Initiation Of Coverage - How Are They Impacted By The Rising Volatility & Firming Trends In The Market? - Major Drivers

Frontline Ltd had a good financial performance in Q4 2023 even though they didn't witness the aggressive bull market they were hoping for. They...

Baptista Research

Cosco Shipping Energy 1138.HK - Higher for Longer

Tanker market imbalance to continue, boosting earnings; global tensions and higher prices benefit the company; stock option scheme incentivizes...

Rikki Malik

Bullish Breadth Divergences Persist; Russell 2000 Testing 1.5-Year Support; Buys in Education Svcs

$RTY $IWM $SPX $SPY and the % of stocks above their 50-day MAs (and 20-day MAs) display bullish breadth divergences. Similar bullish divergences in...

Vermilion Research

Last Week In Event SPACE: EOFlow, Fast Retailing, JMDC, Origin Energy

The weekend is here! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed...

David Blennerhassett

CMB/Euronav: Mandatory Offer

After an EGM gives the green light, CMB will launch a mandatory $18.43/share cash offer for Euronav. The three-way transaction is fairly priced for...

Jesus Rodriguez Aguilar

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Frontline Ltd.: Initiation Of Coverage - How Are They Impacted By The Rising Volatility & Firming Trends In The Market? - Major Drivers

Frontline Ltd had a good financial performance in Q4 2023 even though they didn't witness the aggressive bull market they were hoping for. They...

Baptista Research

Cosco Shipping Energy 1138.HK - Higher for Longer

​Tanker market imbalance to continue, boosting earnings; global tensions and higher prices benefit the company; stock option scheme incentivizes...

Rikki Malik

Bullish Breadth Divergences Persist; Russell 2000 Testing 1.5-Year Support; Buys in Education Svcs

$RTY $IWM $SPX $SPY and the % of stocks above their 50-day MAs (and 20-day MAs) display bullish breadth divergences. Similar bullish divergences in...

Vermilion Research

Last Week In Event SPACE: EOFlow, Fast Retailing, JMDC, Origin Energy

The weekend is here! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed...

David Blennerhassett

CMB/Euronav: Mandatory Offer

After an EGM gives the green light, CMB will launch a mandatory $18.43/share cash offer for Euronav. The three-way transaction is fairly priced for...

Jesus Rodriguez Aguilar

Tanker market imbalance to continue, boosting earnings; global tensions and higher prices benefit the company; stock option scheme incentivizes...