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%.

Thematic (Sector/Industry)

In this report, we predict which technology companies will be targeted over the next two years, who is likely to acquire them and why.Some of the investment themes driving these deals include artificial intelligence, the internet of things, MedTech, 3D printing, internet TV, virtual and augmented reality, robotics, cloud computing and the race between the US and China to dominate the next generation of advanced technologies.

In this report, we predict which technology companies will be targeted over the next two years, who is likely to acquire them and why.Some of the investment themes driving these deals include artificial intelligence, the internet of things, MedTech, 3D printing, internet TV, virtual and augmented reality, robotics, cloud computing and the race between the US and China to dominate the next generation of advanced technologies.

Asia and Global Semiconductor and Tech Research

Andrew Lu

Equity Bottom-Up

TSMC (Taiwan Semiconductor Manufacturing) / Equity Bottom-Up

TSMC (Taiwan Semiconductor Manufacturing)

<h2>Executive summary</h2><ul>
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Results/guidance beat: TSMC reports 7% better 3Q16 EPS than Bloomberg consensus' and guides 7% better 4Q16 sales and 1.6-1.7ppts higher margins. Thus, Bloomberg consensus should raise its 4Q16 EPS forecast by more than 10%. 
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More positive on smartphone IC demand: TSMC says better 4Q16 demand from smartphone and PC customers and looks for 5% CAGR for smartphone market in next five years, vs. our expectation of 0-5% CAGR.</li>
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Slower 10nm ramp but more customers want fan out: TSMC changes…</li>
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Executive summary

Results/guidance beat: TSMC reports 7% better 3Q16 EPS than Bloomberg consensus' and guides 7% better 4Q16 sales and 1.6-1.7ppts higher margins. Thus, Bloomberg consensus should raise its 4Q16 EPS forecast by more than 10%. 


More positive on smartphone IC demand: TSMC says better 4Q16 demand from smartphone and PC customers and looks for 5% CAGR for smartphone market in next five years, vs. our expectation of 0-5% CAGR.

Slower 10nm ramp but more customers want fan out: TSMC changes…


TSMC - 1H17 Unknown After Apple Drives 2H16 Beat

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

There are some important regulatory changes that are coming to the IPOs market for companies listing on the KOSDAQ exchange in Korea. Although the exact dates of when these new measures will be enforced were not announced, these measures are expected to become enforced starting 4Q16. Financial Services Commission (FSC) is the key government entity that is spearheading these changes. We believe the net effect of these changes is positive for the investors and negative for the securities companies…

There are some important regulatory changes that are coming to the IPOs market for companies listing on the KOSDAQ exchange in Korea. Although the exact dates of when these new measures will be enforced were not announced, these measures are expected to become enforced starting 4Q16. Financial Services Commission (FSC) is the key government entity that is spearheading these changes. We believe the net effect of these changes is positive for the investors and negative for the securities companies…

Important Regulatory Changes for IPOs on the KOSDAQ Exchange

<h2>Executive summary</h2><ul>
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<a href="https://www.smartkarma.com/entities/13382" target="_blank" data-smartkarma-citation="entities:13382:1">Micron Technology Inc (MU US)</a> guides a strong 4Q16 sales growth of 10-20% q/q and 6-15% y/y to US$3.55-3.85bn, beating Bloomberg consensus estimate of US$3.48bn by 2-11% q/q and guides 4Q16 margin 3ppts higher than Bloomberg's, resulting in a better diluted EPS of US$0.13-0.21, vs. Bloomberg's US$0.11.</li>
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Changing depreciation from 5 to 7 years: Micron is changing depreciable life from 5 years to 7 years, resulting in lower depreciation expense by US$100mn per quarter or benefiting…</li>
</ul>

Executive summary

Micron Technology Inc (MU US) guides a strong 4Q16 sales growth of 10-20% q/q and 6-15% y/y to US$3.55-3.85bn, beating Bloomberg consensus estimate of US$3.48bn by 2-11% q/q and guides 4Q16 margin 3ppts higher than Bloomberg's, resulting in a better diluted EPS of US$0.13-0.21, vs. Bloomberg's US$0.11.

Changing depreciation from 5 to 7 years: Micron is changing depreciable life from 5 years to 7 years, resulting in lower depreciation expense by US$100mn per quarter or benefiting…


Snapshot at Micron's Guidance Beats and Progress on Inotera Transaction

<ul><li>The six major events in the Korea Stock Market in September were as follows: LG Chem-LG Life Sciences merger, Hanjin Shipping applying for court receivership, Samsung Electronics involved in a major product recall of Galaxy Note 7, the start of One-Shot Act program, the opening of Shinsegae's Starfield Hanam, and Hanmi Pharm's ending of license deal with Boehringer.</li><li>The best-performing sectors in September were Media/Telecom (up 3.1% YoY) and Software/Internet (up 2.8% YoY). The worst-performing sectors were Health Care (down 2% YoY) and Shipbuilding (down 2.6% YoY). </li><li>Our top picks in the stock market were up 0.1% on average in September versus KOSPI which was up 0.2% in the same period. </li></ul>

The six major events in the Korea Stock Market in September were as follows: LG Chem-LG Life Sciences merger, Hanjin Shipping applying for court receivership, Samsung Electronics involved in a major product recall of Galaxy Note 7, the start of One-Shot Act program, the opening of Shinsegae's Starfield Hanam, and Hanmi Pharm's ending of license deal with Boehringer.The best-performing sectors in September were Media/Telecom (up 3.1% YoY) and Software/Internet (up 2.8% YoY). The worst-performing sectors were Health Care (down 2% YoY) and Shipbuilding (down 2.6% YoY). Our top picks in the stock market were up 0.1% on average in September versus KOSPI which was up 0.2% in the same period. 

Korea Stock Market Monthly Recap #6 - (September 2016)

South Korea

SK Hynix Inc. provides products and services for the electronic components industry. The Company manufactures semiconductors, such as dynamic random access memory (DRAM), NAND flash memory, and static random access memory (SRAM) chips.

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SK Hynix (000660 KS)

Tech M&A Targets

In this report, we predict which technology companies will be targeted over the next two years, who is likely to acquire them and why.Some of the...

CM Research

TSMC - 1H17 Unknown After Apple Drives 2H16 Beat

Executive summary Results/guidance beat: TSMC reports 7% better 3Q16 EPS than Bloomberg consensus' and guides 7% better 4Q16 sales and 1.6-1.7ppts...

Andrew Lu

Important Regulatory Changes for IPOs on the KOSDAQ Exchange

There are some important regulatory changes that are coming to the IPOs market for companies listing on the KOSDAQ exchange in Korea. Although the...

Douglas Kim

Snapshot at Micron's Guidance Beats and Progress on Inotera Transaction

Executive summary Micron Technology Inc (MU US) guides a strong 4Q16 sales growth of 10-20% q/q and 6-15% y/y to US$3.55-3.85bn, beating Bloomberg...

Andrew Lu

Korea Stock Market Monthly Recap #6 - (September 2016)

The six major events in the Korea Stock Market in September were as follows: LG Chem-LG Life Sciences merger, Hanjin Shipping applying for court...

Douglas Kim

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