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

Global equities (MSCI ACWI) are decisively breaking above 1-month resistance on US-China trade war optimism, incrementally improving the technical picture. While there is some room to move higher in the near-term, we are hesitant to get too excited because several major indexes have additional hurdles to jump. We highlight important technical levels across major averages including Europe/UK (STOXX 600), Hong Kong (Hang Seng), Japan (TOPIX), and several EM countries (China, Brazil, Russia, Taiwan, and India).  Finally, we highlight attractive opportunities within the Consumer Discretionary, Heath Care and Services sectors.

Global equities (MSCI ACWI) are decisively breaking above 1-month resistance on US-China trade war optimism, incrementally improving the technical picture. While there is some room to move higher in the near-term, we are hesitant to get too excited because several major indexes have additional hurdles to jump. We highlight important technical levels across major averages including Europe/UK (STOXX 600), Hong Kong (Hang Seng), Japan (TOPIX), and several EM countries (China, Brazil, Russia, Taiwan, and India).  Finally, we highlight attractive opportunities within the Consumer Discretionary, Heath Care and Services sectors.

Founder

Kemp Dolliver, CFA

Cherrystone Hill Research

Equity Bottom-Up

Sinopharm Group Co Ltd H / Equity Bottom-Up

<a href="https://www.smartkarma.com/entities/32" target="_blank" data-smartkarma-citation="entities:32:1">Sinopharm Group Co H (1099 HK)</a> 's pending acquisition of a majority interest in China National Scientific Instruments and Materials Co. Ltd. ("CNSIM") from CNPGC marks a major expansion of its medical device distribution business and signals that the rollout of the "two-invoice" policy for medical devices should pick up in earnest.  The new policy poses some transition risks for medical device manufacturers. The magnitude of the impact is difficult to quantify because data from pilot programs is limited and anecdotal.
We view Sinopharm's acquisition of CNSIM favorably, but tag this Insight as bearish because of the heightened risk for medical device companies.

Sinopharm Group Co H (1099 HK) 's pending acquisition of a majority interest in China National Scientific Instruments and Materials Co. Ltd. ("CNSIM") from CNPGC marks a major expansion of its medical device distribution business and signals that the rollout of the "two-invoice" policy for medical devices should pick up in earnest.  The new policy poses some transition risks for medical device manufacturers. The magnitude of the impact is difficult to quantify because data from pilot programs is limited and anecdotal.
We view Sinopharm's acquisition of CNSIM favorably, but tag this Insight as bearish because of the heightened risk for medical device companies.

China Medical Devices: "Two-Invoice" Is Coming

Healthcare Specialist

Winnie Wong

<h2>The Merck Deal</h2>The competition between the leading checkpoint inhibitor cancer drugs Opdivo/Yervoy (<a href="https://www.smartkarma.com/entities/1133" target="_blank" data-smartkarma-citation="entities:1133:1">Bristol Myers Squibb Co (BMY US)</a> ) and Keytruda (<a href="https://www.smartkarma.com/entities/1130" target="_blank" data-smartkarma-citation="entities:1130:1">Merck &amp; Co. Inc. (MRK US)</a> ) intensifies as Merck <a href="https://www.asx.com.au/asxpdf/20180221/pdf/43rsp7s15ndqtc.pdf" target="_blank">announced y</a>esterday that it intends to acquire <a href="https://www.smartkarma.com/entities/5457" target="_blank" data-smartkarma-citation="entities:5457:1">Viralytics Ltd (VLA AU)</a> for A$502 million (US$394 million).  The acquisition price of A$1.75 per share represents a 160% premium to VLA's one-month volume weighted average price. <h2>Why CAVATAK?</h2>The rationale behind the acquisition is to gain access to…

The Merck DealThe competition between the leading checkpoint inhibitor cancer drugs Opdivo/Yervoy (Bristol Myers Squibb Co (BMY US) ) and Keytruda (Merck &amp; Co. Inc. (MRK US) ) intensifies as Merck announced yesterday that it intends to acquire Viralytics Ltd (VLA AU) for A$502 million (US$394 million).  The acquisition price of A$1.75 per share represents a 160% premium to VLA's one-month volume weighted average price. Why CAVATAK?The rationale behind the acquisition is to gain access to…

Is Merck Paying Peanuts to Viralytics for Full Access to Its Oncolytic Immunotherapy Drug Candidate?

SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

Thematic (Sector/Industry)

<ul><li>From a demand perspective, Asia’s population is growing as is longevity. On the supply side, Asia’s number of doctors, nurses, hospitals and medical equipment diverge across the region, and still trail the per capita averages of the 34 OECD member countries. </li><li>For a shorter-term perspective, over the past five weeks, four Healthcare stocks (Cordlife Group, iX Biopharma, UG Healthcare Corporation &amp; Health Management International) have released Annual Reports whilst a secondary listing (Techcomp Holdings) has released an Interim Report.</li><li>Within these reports, there are examples of how the Healthcare Sector is adapting to Asia Pacific demographics, maintaining an ongoing focus on Research &amp; Development, monitoring pharmaceutical &amp; food regulation trends, collaborating with communities to build business channels, expansion of production lines and pursuing value chain management in manufacturing and distribution. </li></ul>

From a demand perspective, Asia’s population is growing as is longevity. On the supply side, Asia’s number of doctors, nurses, hospitals and medical equipment diverge across the region, and still trail the per capita averages of the 34 OECD member countries. For a shorter-term perspective, over the past five weeks, four Healthcare stocks (Cordlife Group, iX Biopharma, UG Healthcare Corporation &amp; Health Management International) have released Annual Reports whilst a secondary listing (Techcomp Holdings) has released an Interim Report.Within these reports, there are examples of how the Healthcare Sector is adapting to Asia Pacific demographics, maintaining an ongoing focus on Research &amp; Development, monitoring pharmaceutical &amp; food regulation trends, collaborating with communities to build business channels, expansion of production lines and pursuing value chain management in manufacturing and distribution. 

Bespoke Research on China and neighbouring regions, Bixmoor

Bixmoor

Bespoke Research on China and neighbouring regions

Bixmoor specialises in providing bespoke research to business, governments and the financial community on China and neighbouring regions. We seek to build long-term relationships with our clients, based on our expertise, our reliability and our determination to find the right solution.

By allowing couples to have up to two children China hopes to reverse its likely population decline. But falling fertility and the pressures of urban living mean that existing policies are unlikely to deliver a baby boom.

By allowing couples to have up to two children China hopes to reverse its likely population decline. But falling fertility and the pressures of urban living mean that existing policies are unlikely to deliver a baby boom.

Falling Fertility Adds to China's Population Woes

China

Lepu Medical Technology (Beijing) Co., Ltd. develops, produces and sells medical devices and parts.  The Company also offers medical devices consulting services.  The company's products include stent system and blockage system.

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Lepu Medical Technology A (300003 CH)

Global Equity Strategy: Guarded Optimism

Global equities (MSCI ACWI) are decisively breaking above 1-month resistance on US-China trade war optimism, incrementally improving the technical...

Vermilion Research

China Medical Devices: "Two-Invoice" Is Coming

Sinopharm Group Co H (1099 HK) 's pending acquisition of a majority interest in China National Scientific Instruments and Materials Co. Ltd....

Kemp Dolliver, CFA

Is Merck Paying Peanuts to Viralytics for Full Access to Its Oncolytic Immunotherapy Drug Candidate?

The Merck DealThe competition between the leading checkpoint inhibitor cancer drugs Opdivo/Yervoy (Bristol Myers Squibb Co (BMY US) ) and Keytruda...

Winnie Wong

Key Drivers of Asia's Healthcare Sector

From a demand perspective, Asia’s population is growing as is longevity. On the supply side, Asia’s number of doctors, nurses, hospitals and...

Singapore Exchange Ltd (SGX)

Falling Fertility Adds to China's Population Woes

By allowing couples to have up to two children China hopes to reverse its likely population decline. But falling fertility and the pressures of...

Bixmoor

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