Managing Director, Zero One, Zero One

Vincent Fernando, CFA

Managing Director, Zero One

Equity Bottom-Up

Taiwan Semiconductor (TSMC) - ADR / Equity Bottom-Up

<ul>
<li>TSMC winning with Nvidia's business, beating Samsung due to TSMC's advanced packaging technology; this highlights the rising importance and complexity of chip packaging.</li>
<li>China export restrictions for rare earths used in semiconductors highlight opportunity for U.S. and Australian rare earths producers. We identify two potential plays.</li>
<li>Nanya Technology Earnings: DRAM market has bottomed, sees industry improvement ahead. We see a trading Long opportunity.</li>
</ul>


TSMC winning with Nvidia's business, beating Samsung due to TSMC's advanced packaging technology; this highlights the rising importance and complexity of chip packaging.
China export restrictions for rare earths used in semiconductors highlight opportunity for U.S. and Australian rare earths producers. We identify two potential plays.
Nanya Technology Earnings: DRAM market has bottomed, sees industry improvement ahead. We see a trading Long opportunity.


Taiwan Tech Weekly: TSMC Packaging Tech Ahead of Samsung; China Rare Earths Restrictions Plays; DRAM

Research from Water Tower Research, Water Tower Research

Water Tower Research

Research from Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Equity Research Firm

Thematic (Sector/Industry)

<ul><li>WTR Sustainable Index: During the week ended April 21, 2023, the WTR Sustainable Index underperformed the broader market, falling 7.3% W/W versus the S&amp;P 500 Index (down 0.1%), the Russell 2000 Index (up 0.6%), and the Nasdaq Composite Index (down 0.4%). Advanced Transportation Solutions (67.2% of the index) contributed to the index underperformance, falling 10.2%, while Energy Technology (8.3% of the index) was down 4.4% and Industrial Climate and Ag Technology was up 0.5%.</li><li>Valuation: Based on forward 12-month consensus estimates, the current P/E ratio of the WTR Sustainable index is 27.6x versus 18.9x for the S&amp;P 500.</li><li>Consensus estimates changes: During the week ended April 21, 2023, there were four increases (three in Energy Technology, and one in Industrial Climate and Ag Technology) 2022 revenue estimates.</li></ul>

WTR Sustainable Index: During the week ended April 21, 2023, the WTR Sustainable Index underperformed the broader market, falling 7.3% W/W versus the S&amp;P 500 Index (down 0.1%), the Russell 2000 Index (up 0.6%), and the Nasdaq Composite Index (down 0.4%). Advanced Transportation Solutions (67.2% of the index) contributed to the index underperformance, falling 10.2%, while Energy Technology (8.3% of the index) was down 4.4% and Industrial Climate and Ag Technology was up 0.5%.Valuation: Based on forward 12-month consensus estimates, the current P/E ratio of the WTR Sustainable index is 27.6x versus 18.9x for the S&amp;P 500.Consensus estimates changes: During the week ended April 21, 2023, there were four increases (three in Energy Technology, and one in Industrial Climate and Ag Technology) 2022 revenue estimates.

Weekly Sustainable Investing Surveyor : Week Ended April 21, 2023

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Event-Driven

<ul>
<li>As expected, there are no adds or deletes for the MVIS Global Rare Earth/Strategic Metals Index at the December rebalance.</li>
<li>There are free float and capping changes that will be implemented at the close on 16 December.</li>
<li>One way turnover is estimated at 4.26% and will result in a one-way trade of US$31.5m.</li>
</ul>


As expected, there are no adds or deletes for the MVIS Global Rare Earth/Strategic Metals Index at the December rebalance.
There are free float and capping changes that will be implemented at the close on 16 December.
One way turnover is estimated at 4.26% and will result in a one-way trade of US$31.5m.


MVIS Global Rare Earth/​​Strategic Metals Index Rebalance: Float & Capping Changes

SPAC Deep Dive, subSPAC

subSPAC

SPAC Deep Dive

Each week we’ll identify and break down for you SPACs that are capturing market share and making an impact.

<ul><li>Amidst Escalating Geopolitical tensions between the US and China, both countries are looking to shore up key raw materials and metals in a bid to bolster their supply chains.</li><li>While commodity prices continue to soar globally, Rare Earth Materials have recently been getting a lot of attention, as a result of huge supply shortages and elevated demand across key industries such as EVs &amp; consumer technology.</li><li>Rare Earths miner <a href="https://www.smartkarma.com/entities/mp-materials-corp" target="_blank" data-smartkarma-citation="entities:33108" rel="noopener">MP Materials Corp (MP US)</a> seems to be getting the interest of investors on account of the shortage. Can the company capitalize on the current demand and help improve local supply chains?</li></ul><div><figure class="editor-figure mceNonEditable"></figure></div>

Amidst Escalating Geopolitical tensions between the US and China, both countries are looking to shore up key raw materials and metals in a bid to bolster their supply chains.While commodity prices continue to soar globally, Rare Earth Materials have recently been getting a lot of attention, as a result of huge supply shortages and elevated demand across key industries such as EVs &amp; consumer technology.Rare Earths miner MP Materials Corp (MP US) seems to be getting the interest of investors on account of the shortage. Can the company capitalize on the current demand and help improve local supply chains?

Can This Rare Earth Miner Disrupt China’s Longstanding Dominance?

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>Global rare earth/strategic metals stocks are breaking out of bases, giving us a high degree of confidence that price and RS appreciation is likely to continue.</li>
<li>Looking at the VanEck Rare Earth/Strategic Metals ETF (REMX-US), it remains topside an 8-year base and displays a bullish inflection after consolidating for 8.5 months.</li>
<li>Buying: MP Materials (MP-US), Lithium Americas (LAC-US, LAC-CA), Livent (LTHM-US), AMG Advanced Metallurgical Group (AMG-NL), Pilbara Minerals (PLS-AU), Liontown Resources (LTR-AU), AVZ Minerals (AVZ-AU), and Standard Lithium (SLI-CA)</li>
</ul>


Global rare earth/strategic metals stocks are breaking out of bases, giving us a high degree of confidence that price and RS appreciation is likely to continue.
Looking at the VanEck Rare Earth/Strategic Metals ETF (REMX-US), it remains topside an 8-year base and displays a bullish inflection after consolidating for 8.5 months.
Buying: MP Materials (MP-US), Lithium Americas (LAC-US, LAC-CA), Livent (LTHM-US), AMG Advanced Metallurgical Group (AMG-NL), Pilbara Minerals (PLS-AU), Liontown Resources (LTR-AU), AVZ Minerals (AVZ-AU), and Standard Lithium (SLI-CA)


Buying Rare Earth/Strategic Metals Stocks: MP, LAC, LTHM, AMG-NL, PLS-AU, LTR-AU, AVZ-AU, SLI-CA

United States

MP Materials Corp. produces and markets rare earth specialty materials. The Company is building a fully-integrated supply chain for high strength permanent magnets for the electrification and sustainability industries.

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MP Materials Corp (MP US)

Taiwan Tech Weekly: TSMC Packaging Tech Ahead of Samsung; China Rare Earths Restrictions Plays; DRAM

China export restrictions for rare earths used in semiconductors highlight opportunity for U.S. and Australian rare earths producers.

Vincent Fernando, CFA

Weekly Sustainable Investing Surveyor : Week Ended April 21, 2023

During the week ended April 21, 2023, the WTR Sustainable Index underperformed the broader market, falling 7.3% W/W versus the S&P 500 Index (down...

Water Tower Research

MVIS Global Rare Earth/Strategic Metals Index Rebalance: Float & Capping Changes

No adds/deletes for REMX in December. Free float and capping changes will be implemented at the close on 16 December resulting in one-way turnover...

Brian Freitas

Can This Rare Earth Miner Disrupt China’s Longstanding Dominance?

Amidst Escalating Geopolitical tensions between the US and China, both countries are looking to shore up key raw materials and metals in a bid to...

subSPAC

Buying Rare Earth/Strategic Metals Stocks: MP, LAC, LTHM, AMG-NL, PLS-AU, LTR-AU, AVZ-AU, SLI-CA

Global rare earth/strategic metals stocks are breaking out of bases, and we expect price and RS appreciation to continue. This also provides us...

Vermilion Research

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Taiwan Tech Weekly: TSMC Packaging Tech Ahead of Samsung; China Rare Earths Restrictions Plays; DRAM

China export restrictions for rare earths used in semiconductors highlight opportunity for U.S. and Australian rare earths producers.

Vincent Fernando, CFA

Weekly Sustainable Investing Surveyor : Week Ended April 21, 2023

During the week ended April 21, 2023, the WTR Sustainable Index underperformed the broader market, falling 7.3% W/W versus the S&P 500 Index (down...

Water Tower Research

MVIS Global Rare Earth/​​Strategic Metals Index Rebalance: Float & Capping Changes

No adds/deletes for REMX in December. Free float and capping changes will be implemented at the close on 16 December resulting in one-way turnover...

Brian Freitas

Can This Rare Earth Miner Disrupt China’s Longstanding Dominance?

Amidst Escalating Geopolitical tensions between the US and China, both countries are looking to shore up key raw materials and metals in a bid to...

subSPAC

Buying Rare Earth/Strategic Metals Stocks: MP, LAC, LTHM, AMG-NL, PLS-AU, LTR-AU, AVZ-AU, SLI-CA

Global rare earth/strategic metals stocks are breaking out of bases, and we expect price and RS appreciation to continue. This also provides us...

Vermilion Research

MVIS Global Rare Earth/Strategic Metals Index Rebalance: Float & Capping Changes