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Granite Bay Capital

An innovation focussed investment company

Granite Bay Capital is an innovation focussed investment company with a deep focus on the companies at the leading edge of innovation across major themes such as AI, ubiquitous computing, sustainability, automation and longevity.

Thematic (Sector/Industry)

Headline developments are all up in the air this week, starting with United Airlines (UAL) who have signed an agreement with Boom Supersonic (private) to add 15 of their $200m jets to the fleet, with the option of adding an additional 35, after certain safety, sustainability and operating metrics are met.

Headline developments are all up in the air this week, starting with United Airlines (UAL) who have signed an agreement with Boom Supersonic (private) to add 15 of their $200m jets to the fleet, with the option of adding an additional 35, after certain safety, sustainability and operating metrics are met.

Alpha-Centric ESG Research

Kyle Rudden

The Biden-Harris administration recently announced four "Day One" priorities, the first of which is their COVID-19 response plan. COVID-19 response is first, because it is a prerequisite to economic recovery, which is the second of their four "Day One" priorities.Several investment themes are inherent in Biden's COVID-19 plan, some more direct and obvious than others. This Insight overviews more significant themes and their most representative stocks, in three sections (the first two will be expanded on in separate upcoming reports):<ol>
<li>
COVID-19 Testing: Testing is the largest, most tangible, nearest-term investment opportunity created by Biden's plan. An estimated US$75-100 billion for testing could be windfall for certain stocks, but not all. Selectivity is key, and timing is critical (related to vaccine development).</li>
<li>
Vaccine Delivery: Biden's plan emphasises vaccine manufacturing and delivery, versus vaccine development (Trump had allocated <a href="https://www.hhs.gov/coronavirus/explaining-operation-warp-speed/index.html" target="_blank" rel="noopener">billions</a> to vaccine development companies). Some might go to big pharma companies for M&amp;D, but most should benefit other "cold chain" stocks.</li>
<li>
PPE Supply/Other: PPE manufacturing, of course, but that is largely old news. I will address it, but do so along with other more interesting collateral themes. For example, retail drugs chains, elder-care, medical technologies, and a few other related industries.</li>
</ol>

The Biden-Harris administration recently announced four "Day One" priorities, the first of which is their COVID-19 response plan. COVID-19 response is first, because it is a prerequisite to economic recovery, which is the second of their four "Day One" priorities.Several investment themes are inherent in Biden's COVID-19 plan, some more direct and obvious than others. This Insight overviews more significant themes and their most representative stocks, in three sections (the first two will be expanded on in separate upcoming reports):

COVID-19 Testing: Testing is the largest, most tangible, nearest-term investment opportunity created by Biden's plan. An estimated US$75-100 billion for testing could be windfall for certain stocks, but not all. Selectivity is key, and timing is critical (related to vaccine development).

Vaccine Delivery: Biden's plan emphasises vaccine manufacturing and delivery, versus vaccine development (Trump had allocated billions to vaccine development companies). Some might go to big pharma companies for M&amp;D, but most should benefit other "cold chain" stocks.

PPE Supply/Other: PPE manufacturing, of course, but that is largely old news. I will address it, but do so along with other more interesting collateral themes. For example, retail drugs chains, elder-care, medical technologies, and a few other related industries.


Biden COVID-19 Response Plan: Overview of Its Inherent Investment Themes

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

In our November Strategy book we summarize the basis for our bullish outlook, discuss the deservedly hot topic of value vs. growth. and highlight actionable opportunities within our Manufacturing, Transportation, Materials, Technology, &amp; Consumer Discretionary Sectors.

In our November Strategy book we summarize the basis for our bullish outlook, discuss the deservedly hot topic of value vs. growth. and highlight actionable opportunities within our Manufacturing, Transportation, Materials, Technology, &amp; Consumer Discretionary Sectors.

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Capital Markets

Point Mobile Co Ltd / Equity Capital Markets

Point Mobile is a Korean company getting ready to complete its IPO in November. The IPO price range is from 13,000 won to 15,000 won. The IPO base deal size is from $12 million to $14 million. The bookbuilding for the institutional investors will start on 26 October 2020. Hana Investment &amp; Securities is the lead underwriter of this IPO. 
<div class="content-highlight">
<h3>Amazon Could Become the 2nd Largest Shareholder of Point Mobile</h3>
One of the most interesting aspects of Point Mobile is that it has given a pre-emptive rights to Amazon, one of its major customers. According to this contract which was signed in July 2020, the length of the contract lasts 8 years and it includes Amazon purchasing various products from Point Mobile (cumulative amount of $200 million in sales). In return, Amazon could purchase 1.48 million new shares in Point Mobile. If Amazon exercises 100% of this rights, Amazon would become the second-largest shareholder with a 17.7% stake in the company.
Currently, the founder and CEO Kang Sam-Kwon is the controlling shareholder with a 21.2% stake in the company. Jang Young-Wook (founder's wife) has a 10.6% stake. There are also treasury shares worth 3.8% of outstanding shares. 
The fact that Amazon was willing to enter into a long-term contract with Point Mobile is positive for the company. It shows that Amazon is impressed with the company's products, so much so that it is willing to become the second-largest shareholder in the company. Later on, if Amazon does exercise its rights and become the 2nd largest shareholder in the company, this would also have a major positive impact on Point Mobile since it could result in significantly higher incremental revenues from Amazon.
</div>

Point Mobile is a Korean company getting ready to complete its IPO in November. The IPO price range is from 13,000 won to 15,000 won. The IPO base deal size is from $12 million to $14 million. The bookbuilding for the institutional investors will start on 26 October 2020. Hana Investment &amp; Securities is the lead underwriter of this IPO. 

Amazon Could Become the 2nd Largest Shareholder of Point Mobile
One of the most interesting aspects of Point Mobile is that it has given a pre-emptive rights to Amazon, one of its major customers. According to this contract which was signed in July 2020, the length of the contract lasts 8 years and it includes Amazon purchasing various products from Point Mobile (cumulative amount of $200 million in sales). In return, Amazon could purchase 1.48 million new shares in Point Mobile. If Amazon exercises 100% of this rights, Amazon would become the second-largest shareholder with a 17.7% stake in the company.
Currently, the founder and CEO Kang Sam-Kwon is the controlling shareholder with a 21.2% stake in the company. Jang Young-Wook (founder's wife) has a 10.6% stake. There are also treasury shares worth 3.8% of outstanding shares. 
The fact that Amazon was willing to enter into a long-term contract with Point Mobile is positive for the company. It shows that Amazon is impressed with the company's products, so much so that it is willing to become the second-largest shareholder in the company. Later on, if Amazon does exercise its rights and become the 2nd largest shareholder in the company, this would also have a major positive impact on Point Mobile since it could result in significantly higher incremental revenues from Amazon.


Encouraging developments continue to pour in. Over the past week we have seen dramatic improvements that could be setting the stage for a broad-based advance. We highlight these improvements in this report, along with what we would like to see in order to have confidence in labeling this a bull market.  In today’s report we also highlight attractive Groups and stocks within Energy, Financials, Manufacturing, and Technology: Refining, Banks, Super-Regional, Industrial, Diversified, Large-Cap, and Data Storage Solutions &amp; Devices, Large-Cap.

Encouraging developments continue to pour in. Over the past week we have seen dramatic improvements that could be setting the stage for a broad-based advance. We highlight these improvements in this report, along with what we would like to see in order to have confidence in labeling this a bull market.  In today’s report we also highlight attractive Groups and stocks within Energy, Financials, Manufacturing, and Technology: Refining, Banks, Super-Regional, Industrial, Diversified, Large-Cap, and Data Storage Solutions &amp; Devices, Large-Cap.

U.S. Equity Strategy: Dramatic Improvement

United States

Honeywell International Inc. is a worldwide diversified technology and manufacturing company providing aerospace products and services, control, sensing and security technologies, turbochargers, automotive products, specialty chemicals, electronic and advanced materials, process technology for refining and petrochemicals, and energy efficient products and solutions.

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Honeywell International (HON US)

Weekly Innovation Review (WIRE) #35

Headline developments are all up in the air this week, starting with United Airlines (UAL) who have signed an agreement with Boom Supersonic

Granite Bay Capital

Biden COVID-19 Response Plan: Overview of Its Inherent Investment Themes

Biden's recently-announced COVID-19 response plan suggests a number of investment themes. This Insight overviews the more significant of those...

Kyle Rudden

U.S. Equity Strategy: Remain Bullish

In our November Strategy book we summarize the basis for our bullish outlook, discuss the deservedly hot topic of value vs. growth. and highlight...

Vermilion Research

Point Mobile IPO Preview

One of the most interesting aspects of Point Mobile is that it has given a pre-emptive rights to Amazon, one of its major customers. According to...

Douglas Kim

U.S. Equity Strategy: Dramatic Improvement

Encouraging developments continue to pour in. Over the past week we have seen dramatic improvements that could be setting the stage for a...

Vermilion Research

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