Global Head of Research, Smartkarma

Mark Artherton

Global Head of Research

Ecstrat

Ecstrat is a consultancy advising on asset allocation between global equity markets, with a focus on the intersection of governments, geopolitics, governance and markets.
 
Over the past few years and more especially since the Great Financial Crisis (GFC), investors have become more focused on short-term market movements and real-time returns and have consequently neglected the analysis of the underlying structural themes that underpin longer term performance.
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More specifically we believe that the evolution of governance-based relationships between investors, controlling shareholders, labour and the state is one of the primary determinants of both relative and absolute performance between individual equity markets.
 
We will endeavour to provide investors with some of the context surrounding governance-related issues which encompass many different disciplines including history, economics and political science, as well as the financial metrics which are the most obvious manifestation of the structural characteristics of each market.
 
We will pay particular attention to the shifts and potential inflection points for governance in individual markets as these are often the best lead indicators for both economic and market performance.

Macroeconomics

Ecstrat were amongst the first to highlight the explosive growth of working capital in non-financial companies in China. We monitor over 3,000 listed Chinese corporates and with 20% of those having now reported for 2015 we can start to draw some conclusions.<div class="content-highlight"><ul><li>The 'cash flow recession' in corporate China continues.</li></ul></div><div class="content-highlight"><ul><li>Almost all sectors have experienced a rise in receivable days when comparing 2015 to 2014.</li></ul></div><div class="content-highlight">Almost all sectors have seen an even larger increase in payable days, suggesting that the listed…</div>

Ecstrat were amongst the first to highlight the explosive growth of working capital in non-financial companies in China. We monitor over 3,000 listed Chinese corporates and with 20% of those having now reported for 2015 we can start to draw some conclusions.The 'cash flow recession' in corporate China continues.Almost all sectors have experienced a rise in receivable days when comparing 2015 to 2014.Almost all sectors have seen an even larger increase in payable days, suggesting that the listed…

Large Caps Squeezing SMEs in Early Reading of FY2015 Chinese Working Capital

Leading Independent Investment Research, Morningstar, Inc.

Morningstar

Leading Independent Investment Research

Morningstar, Inc.

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. We offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors. 

Morningstar provides data on more than 500,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 16 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries, with more than $180 billion in assets under advisement or management as of June 30, 2015. We have operations in 27 countries.

Download the Morningstar Fact Sheet : http://corporate.morningstar.com/US/documents/MarketingFactSheets/AboutMorningstarFactsheet.pdf

Thematic (Sector/Industry)

The Morningstar® Exponential Technology Index is designed to provide exposure to equities identified by Morningstar’s Equity Research team as positioned to experience meaningful economic benefits as a user or producer of promising technologies.The index consists of 200 stocks that are equally weighted. It is reconstituted annually in December. This report was originally published in December following the reconstitution, but is being republished here as a fork of <a href="https://www.smartkarma.com/profiles/346" target="_blank" data-smartkarma-citation="accounts:346">CM Research</a> latest note <a href="https://www.smartkarma.com/insights/big-data-as-an-investment-theme" target="_blank" data-smartkarma-citation="insights:2975">Big Data as an Investment Theme</a>, to highlight ways to get exposure to this and other important themes.In addition to details of the Index constituents, subscribers will find a presentation on the index methodology attached.

The Morningstar® Exponential Technology Index is designed to provide exposure to equities identified by Morningstar’s Equity Research team as positioned to experience meaningful economic benefits as a user or producer of promising technologies.The index consists of 200 stocks that are equally weighted. It is reconstituted annually in December. This report was originally published in December following the reconstitution, but is being republished here as a fork of CM Research latest note Big Data as an Investment Theme, to highlight ways to get exposure to this and other important themes.In addition to details of the Index constituents, subscribers will find a presentation on the index methodology attached.

Thematic Investing in Tech and Media, CM Research

Cyrus Mewawalla

Thematic Investing in Tech and Media

Thematic TMT investing

CM Research

CM Research is an independent research house based in London, England. We provide global thematic research in the Technology, Media and Telecoms (TMT) sectors. 

Our focus is on disruptive technologies: how will they unfold; which industries will be impacted; and who will be the ultimate winners and losers. 

Our aim is to help investors predict share prices and corporate executives stay one step ahead of the technology trends that are shaping their industry. 

We research technology investment themes in detail and then feed the results into a scorecard system to quantify the impact of several conflicting themes on individual stocks. 

Recent themes covered include internet TV, the Internet of Things, Big Data, Mobile payments, crowdfunding, artificial intelligence, the cloud, software defined networking and Generation Hashtag.

We cover the top 500 global TMT stocks by market capitalisation and several technology start-ups and pre-IPO companies too. 

In 2015, CM Research analysts outperformed the Bloomberg Benchmark Analyst Index - which measures how good analysts are at predicting stock prices - by 7.1%.

During this decade, the digital data universe is expected to grow 75-fold from 1.2 zettabytes to 90 zettabytes. (1 zettabyte = 1 trillion gigabytes).Ask any CEO how he expects to sell more products and cut more costs and he will tell you that Big Data features prominently in his strategy. Big Data refers to the technology processes by which companies can profit from the large amounts of data to which they have access.But investors who want to ride the Big Data wave are finding that it is not that easy to identify where to invest.In this report, we delve deep down into the Big Data supply chain and look at where the investment opportunities really lie.&nbsp;

During this decade, the digital data universe is expected to grow 75-fold from 1.2 zettabytes to 90 zettabytes. (1 zettabyte = 1 trillion gigabytes).Ask any CEO how he expects to sell more products and cut more costs and he will tell you that Big Data features prominently in his strategy. Big Data refers to the technology processes by which companies can profit from the large amounts of data to which they have access.But investors who want to ride the Big Data wave are finding that it is not that easy to identify where to invest.In this report, we delve deep down into the Big Data supply chain and look at where the investment opportunities really lie.&nbsp;

Differentiated global TMT & Internet Research

New Street Research Insights

New Street Research

Research is provided by our team of experienced analysts. Our work is idea driven, based on independence of thought, sector expertise, and firmly focused on fundamentals and valuation of telecoms and internet names globally. New Street is headquartered in London with offices in New York, Singapore and Australia. 

New Street Research is an independent, partner-owned, research firm specialising in equity and debt research. Our equity research embraces the following sectors:

Pan European Telecom Services and Cable
US Telecoms, Cable, Satellite and Towers
Global Emerging Market Telecoms
Japan Telecoms
Asian Internet
Pan European Healthcare
US Healthcare
Japanese Healthcare

We also provide debt research on:
Pan European Telecom Services and Cable

Equity Bottom-Up

<a href="https://www.smartkarma.com/entities/17203" target="_blank" data-smartkarma-citation="entities:17203">Netease Inc Adr</a> (NTES) is the global leader in mobile game publishing, with revenue ahead of <a href="https://www.smartkarma.com/entities/26" target="_blank" data-smartkarma-citation="entities:26">Tencent Holdings Ltd</a> (Tencent) in recent iOS monthly data for November and December.  NTES 4Q15 results were strong but, we believe, also show  a peak in gaming revenue growth. Sequential growth has started to moderate  and while advertising revenue surprised on the upside, there is a lack of visibility around this part of the business. The Lottery business also remains uncertain. The stock fell sharply after the earnings release and has struggled since. While NTES has been hugely successful as a gaming company, it remains essentially a one trick pony (games). We prefer the more balanced Tencent with its broader revenue streams. That said, from the current share price the stock looks quite attractive even with a slower growth profile. It is also a rarity in the internet space: it has a real dividend yield.

Netease Inc Adr (NTES) is the global leader in mobile game publishing, with revenue ahead of Tencent Holdings Ltd (Tencent) in recent iOS monthly data for November and December.  NTES 4Q15 results were strong but, we believe, also show  a peak in gaming revenue growth. Sequential growth has started to moderate  and while advertising revenue surprised on the upside, there is a lack of visibility around this part of the business. The Lottery business also remains uncertain. The stock fell sharply after the earnings release and has struggled since. While NTES has been hugely successful as a gaming company, it remains essentially a one trick pony (games). We prefer the more balanced Tencent with its broader revenue streams. That said, from the current share price the stock looks quite attractive even with a slower growth profile. It is also a rarity in the internet space: it has a real dividend yield.

The market seems to view <a href="https://www.smartkarma.com/entities/26" target="_blank" data-smartkarma-citation="entities:26">Tencent Holdings Ltd</a> (Tencent) as an online games company which also owns WeChat (the WhatsApp of China). We think this under represents the potential at Tencent. For a start Tencent also owns mobile QQ and the two platforms have the highest number of monthly active users (MAU) and highest average usage in China. Tencent is able to monetize directly through games and indirectly through high user engagement. Tis high level of engagement is attractive to advertisers while evolving advertising technology (Adtech) should enhance growth prospects. We expect Tencent's ad growth top be 3x that at <a href="https://www.smartkarma.com/entities/179" target="_blank" data-smartkarma-citation="entities:179">Baidu Inc Spon Adr</a> (BIDU) in the next 5 years, mirroring the experience of Facebook vs Google in the US. Tencent remains a key thematic idea at New Street Research as it increasingly monetizes its vast user base. The current share price correction looks like an opportunity.

The market seems to view Tencent Holdings Ltd (Tencent) as an online games company which also owns WeChat (the WhatsApp of China). We think this under represents the potential at Tencent. For a start Tencent also owns mobile QQ and the two platforms have the highest number of monthly active users (MAU) and highest average usage in China. Tencent is able to monetize directly through games and indirectly through high user engagement. Tis high level of engagement is attractive to advertisers while evolving advertising technology (Adtech) should enhance growth prospects. We expect Tencent's ad growth top be 3x that at Baidu Inc Spon Adr (BIDU) in the next 5 years, mirroring the experience of Facebook vs Google in the US. Tencent remains a key thematic idea at New Street Research as it increasingly monetizes its vast user base. The current share price correction looks like an opportunity.

Tencent's Multiple Platforms Deliver Key Advantages

China

NetEase, Inc. operates as an leading internet technology company providing online services including content, community, communication, and commerce. The Company develops and operates online games, electronic commerce, internet media, innovative business, and other businesses. NetEase expands its businesses to Japan, North American, and other other international markets.

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NetEase (9999 HK)

Large Caps Squeezing SMEs in Early Reading of FY2015 Chinese Working Capital

Ecstrat were amongst the first to highlight the explosive growth of working capital in non-financial companies in China. We monitor over 3,000...

Mark Artherton

Morningstar Exponential Technology Index

The Morningstar® Exponential Technology Index is designed to provide exposure to equities identified by Morningstar’s Equity Research team as...

Morningstar, Inc.

Big Data as an Investment Theme

During this decade, the digital data universe is expected to grow 75-fold from 1.2 zettabytes to 90 zettabytes. (1 zettabyte = 1 trillion...

CM Research

Netease Games Growth Starting to Slow

Netease Inc Adr (NTES) is the global leader in mobile game publishing, with revenue ahead of Tencent Holdings Ltd (Tencent) in recent iOS monthly...

New Street Research

Tencent's Multiple Platforms Deliver Key Advantages

The market seems to view Tencent Holdings Ltd (Tencent) as an online games company which also owns WeChat (the WhatsApp of China). We think this...

New Street Research

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