Value Investing

Vladimir Dimitrov, CFA

Equity Bottom-Up

<ul>
<li>General Mills continued to outperform the market, in spite of the sharp drop in share price in recent months.</li>
<li>The company now trades closer to fair value, but weakness in the pet food segment was largely unexpected.</li>
<li>The drop in volumes is unsettling, but the company now trading closer to a fair value.</li>
</ul>


General Mills continued to outperform the market, in spite of the sharp drop in share price in recent months.
The company now trades closer to fair value, but weakness in the pet food segment was largely unexpected.
The drop in volumes is unsettling, but the company now trading closer to a fair value.


General Mills: I Am Once Again Bullish And Have 2 Areas Investors Should Watch Closely

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>After selling a 35.43% stake in Olam Agri to Saudi Arabia’s Public Investment Fund last month, <strong><a href="https://www.smartkarma.com/entities/olam-group" target="_blank" data-smartkarma-citation="entities:765:1" rel="noopener">Olam Group (OLG SP)</a></strong> intends to dual list the company in Singapore and Saudi Arabia. </li>
<li>The stake sale implied a US$3.5bn value for the agricultural arm, or ~50% of OGL's current market cap based on its remaining position in Olam Agri. </li>
<li>Olam Agri <em>may</em> raise up to US$1bn via the listing. A separate London listing of OGL's food ingredient business is expected to occur subsequent to Olam Agri's listing.</li>
</ul>


After selling a 35.43% stake in Olam Agri to Saudi Arabia’s Public Investment Fund last month, Olam Group (OLG SP) intends to dual list the company in Singapore and Saudi Arabia. 
The stake sale implied a US$3.5bn value for the agricultural arm, or ~50% of OGL's current market cap based on its remaining position in Olam Agri. 
Olam Agri may raise up to US$1bn via the listing. A separate London listing of OGL's food ingredient business is expected to occur subsequent to Olam Agri's listing.


Petrodollars Fan Olam's Agri Listing In Singapore And Saudi Arabia

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

<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

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

<ul>
<li>I-Tail, an OEM in the wet pet food category, raised around US$600m in its Thailand IPO. It is a subsidiary of <a href="https://www.smartkarma.com/entities/thai-union-group-pcl" target="_blank" data-smartkarma-citation="entities:161:1" rel="noopener">Thai Union Group (TU TB)</a>.</li>
<li>As per ITC, it was the number two pet food company in Asia and in the top ten pet food companies globally. ITC expertise lies in fish-based wet pet food.</li>
<li>In our previous notes, we have looked at the company’s past performance, undertaken a peer comparison and spoken about valuation. In this note, we will talk about the trading dynamics</li>
</ul>


I-Tail, an OEM in the wet pet food category, raised around US$600m in its Thailand IPO. It is a subsidiary of Thai Union Group (TU TB).
As per ITC, it was the number two pet food company in Asia and in the top ten pet food companies globally. ITC expertise lies in fish-based wet pet food.
In our previous notes, we have looked at the company’s past performance, undertaken a peer comparison and spoken about valuation. In this note, we will talk about the trading dynamics


I-Tail Corporation IPO Trading - Should Be Able to Provide Some Holiday Cheer

<ul>
<li>General Mills has significantly outperformed the broader equity market and the consumer staples industry as a whole.</li>
<li>The share price seems to be running ahead of fundamentals which reduces expected returns going forward.</li>
<li>The company would also need to dial-up investments in the coming year to secure its strong competitive positioning, according to the company.</li>
</ul>


General Mills has significantly outperformed the broader equity market and the consumer staples industry as a whole.
The share price seems to be running ahead of fundamentals which reduces expected returns going forward.
The company would also need to dial-up investments in the coming year to secure its strong competitive positioning, according to the company.


General Mills: Delivering High Returns During Market Downturns

United States

General Mills, Inc. manufactures and markets branded and packaged consumer foods worldwide. The Company also supplies branded and unbranded food products to the foodservice and commercial baking industries.

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General Mills (GIS US)

General Mills: I Am Once Again Bullish And Have 2 Areas Investors Should Watch Closely

The company now trades closer to fair value, but weakness in the pet food segment was largely unexpected. The drop in volumes is unsettling, but...

Vladimir Dimitrov, CFA

Petrodollars Fan Olam's Agri Listing In Singapore And Saudi Arabia

Investors may be inclined to hold onto Olam shares for the Olam Agri in-specie and then exit. Or participate directly in the IPO I'd be picking up...

David Blennerhassett

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

I-Tail Corporation IPO Trading - Should Be Able to Provide Some Holiday Cheer

I-Tail, an OEM in the wet pet food category, raised around US$600m in its Thailand IPO. It is a subsidiary of Thai Union Group (TU TB).

Sumeet Singh

General Mills: Delivering High Returns During Market Downturns

General Mills has significantly outperformed the broader equity market and the consumer staples industry as a whole.The share price seems to be...

Vladimir Dimitrov, CFA

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