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

Our positive outlook on global equities (both the MSCI ACWI and ACWI ex-US) remains intact and we believe a “buy the dip” strategy is warranted. We recommend taking advantage of recent weakness -- where applicable -- by adding exposure to cyclical Sectors. Today’s recommendations focus on autos, auto parts, and machinery which span the Consumer Discretionary and Manufacturing Sectors.

Our positive outlook on global equities (both the MSCI ACWI and ACWI ex-US) remains intact and we believe a “buy the dip” strategy is warranted. We recommend taking advantage of recent weakness -- where applicable -- by adding exposure to cyclical Sectors. Today’s recommendations focus on autos, auto parts, and machinery which span the Consumer Discretionary and Manufacturing Sectors. 

Global Equity Strategy: Overweight Cyclicals

Senior Technology Analyst, Japanese Equities, LightStream Research

Scott Foster

Senior Technology Analyst, Japanese Equities

Equity Bottom-Up

Hosokawa Micron is a worldwide supplier of Powder Processing equipment to the electronics, food, chemical and other industries, and thin Plastic Film production systems for makers of packaging materials. It is currently benefitting from increases in capital spending across diverse user industries and major regional markets. Operating profit was up 38% on an 11% increase in sales in FY Sep-17 and growth accelerated in 1Q of the new fiscal year.The share price has doubled over the past year, but valuations are still low relative to those of many other Japanese technology companies geared to capital spending. At ¥7,700 (March 16, 2018 closing price), the shares are selling at 15x our EPS estimate for this fiscal year and 14x our estimate for FY Sep-19. Targeting 20x earnings indicates 33% potential upside using our forecast for this fiscal year. The Japan Analytics model explained below generates 27% potential upside to a no-growth valuation and 37% upside using our profit forecast for FY Sep-19. Hosokawa Micron's fortunes rise and fall with the capital spending plans of its user industries, but the the long-term story is one of technological excellence, broad market penetration and efficiency gains.

Hosokawa Micron is a worldwide supplier of Powder Processing equipment to the electronics, food, chemical and other industries, and thin Plastic Film production systems for makers of packaging materials. It is currently benefitting from increases in capital spending across diverse user industries and major regional markets. Operating profit was up 38% on an 11% increase in sales in FY Sep-17 and growth accelerated in 1Q of the new fiscal year.The share price has doubled over the past year, but valuations are still low relative to those of many other Japanese technology companies geared to capital spending. At ¥7,700 (March 16, 2018 closing price), the shares are selling at 15x our EPS estimate for this fiscal year and 14x our estimate for FY Sep-19. Targeting 20x earnings indicates 33% potential upside using our forecast for this fiscal year. The Japan Analytics model explained below generates 27% potential upside to a no-growth valuation and 37% upside using our profit forecast for FY Sep-19. Hosokawa Micron's fortunes rise and fall with the capital spending plans of its user industries, but the the long-term story is one of technological excellence, broad market penetration and efficiency gains.

Hosokawa Micron (6277 JP): Benefitting from a Prolonged Tech & Machinery Cycle

Japan

HOSOKAWA MICRON CORPORATION manufactures particle, powder, and thermal processing machinery used to produce a diverse range of industrial and consumer end products.  The Company also manufactures machinery for filtration, confectionery production, and air pollution control.

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Hosokawa Micron (6277 JP)

Global Equity Strategy: Overweight Cyclicals

Our positive outlook on global equities (both the MSCI ACWI and ACWI ex-US) remains intact and we believe a “buy the dip” strategy is warranted. We...

Vermilion Research

Hosokawa Micron (6277 JP): Benefitting from a Prolonged Tech & Machinery Cycle

Hosokawa Micron is a worldwide supplier of Powder Processing equipment to the electronics, food, chemical and other industries, and thin Plastic...

Scott Foster

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52-week Range

Market Cap (USDm)

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