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 Best Ideas list is a compilation of stock ideas sourced from Morningstar’s global equity research team. With more than 100 analysts covering nearly 1,500 companies, we’re able to provide a wide variety of what we believe are attractively priced securities looking across sectors, industries, and geographies. Best Ideas are nominated by analysts and approved by managers in addition to the normal due diligence processes that precede our published research and ratings.The list may include a broad mix of quality and risk characteristics to meet varying investor needs, including no-, narrow-, and wide-moat companies as well as the full spectrum of uncertainty ratings from low to very high. Most or all of the highlighted stocks will be trading at a discount to our estimate of intrinsic value, indicating improved odds of capital appreciation.

The Best Ideas list is a compilation of stock ideas sourced from Morningstar’s global equity research team. With more than 100 analysts covering nearly 1,500 companies, we’re able to provide a wide variety of what we believe are attractively priced securities looking across sectors, industries, and geographies. Best Ideas are nominated by analysts and approved by managers in addition to the normal due diligence processes that precede our published research and ratings.The list may include a broad mix of quality and risk characteristics to meet varying investor needs, including no-, narrow-, and wide-moat companies as well as the full spectrum of uncertainty ratings from low to very high. Most or all of the highlighted stocks will be trading at a discount to our estimate of intrinsic value, indicating improved odds of capital appreciation.

Morningstar and PitchBook hosted the 10th annual Management Behind the Moat Conference in Chicago on Nov. 7 and 8, offering our institutional clients an opportunity to engage with the management of 49 public companies we think have structural competitive advantages, or economic moats, as well as two private companies worth watching. This report distills the highlights from company presentations. A roster of all companies that participated in the conference, including those that held one-on-one meetings with investors, can be found on Page 2 of the attached document.<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/069/790/original/img%201.JPG?1542165661" class="editor-image img-responsive" data-smartkarma-image-id="69790"></figure>

Morningstar and PitchBook hosted the 10th annual Management Behind the Moat Conference in Chicago on Nov. 7 and 8, offering our institutional clients an opportunity to engage with the management of 49 public companies we think have structural competitive advantages, or economic moats, as well as two private companies worth watching. This report distills the highlights from company presentations. A roster of all companies that participated in the conference, including those that held one-on-one meetings with investors, can be found on Page 2 of the attached document.

Morningstar Management Behind the Moat 2018: Conference Highlights

Founder and Strategist, Entext Economics & Strategy

Sean Maher

Founder and Strategist

Entext Economics & Strategy

Entext provides institutional investors with distinctive, actionable asset allocation and thematic research, which typically challenges the market consensus. Our clients range from credit, equity and multi-asset hedge and pension funds to family offices and sovereign funds. 
 
We focus on identifying key inflection points in macro data and relative asset performance amid the 'groupthink'  and confirmation bias that characterizes most investment bank analysis.

Macro Driven Investment Insight

<ul>
<li>I’ve been underweight consumer staples on valuation and business model disruption risks since 2015 and the sector has de-rated significantly versus the wider market and consumer discretionary.</li>
<li>I’ve also highlighted the disintermediation shock facing the advertising industry – heavy brand advertising to guarantee prime supermarket shelf space is becoming a defunct business model.</li>
<li>Recent results from FMCG giants like Nestle and the advertising sector have disappointed, with tighter client spending…</li>
</ul>


I’ve been underweight consumer staples on valuation and business model disruption risks since 2015 and the sector has de-rated significantly versus the wider market and consumer discretionary.
I’ve also highlighted the disintermediation shock facing the advertising industry – heavy brand advertising to guarantee prime supermarket shelf space is becoming a defunct business model.
Recent results from FMCG giants like Nestle and the advertising sector have disappointed, with tighter client spending…


With ‘Brand Building’ Ad Era Over, Can Food Inflation Rescue FMCG Margins?

<ul>
<li>We’ve seen a number of advertising sector profit warnings from Dentsu to WPP amid signs that key clients across the FMCG sector are questioning the payback from digital advertising.</li>
<li>Indeed, Google has begun offering refunds to advertisers for fraudulent traffic driven by ‘click bots’, but stricter EU data privacy rules and the rise of ad blocking software are additional threats.</li>
<li>The ad sector risks being disintermediated as increasingly cost conscious brands facing rising EM competition create…</li>
</ul>


We’ve seen a number of advertising sector profit warnings from Dentsu to WPP amid signs that key clients across the FMCG sector are questioning the payback from digital advertising.
Indeed, Google has begun offering refunds to advertisers for fraudulent traffic driven by ‘click bots’, but stricter EU data privacy rules and the rise of ad blocking software are additional threats.
The ad sector risks being disintermediated as increasingly cost conscious brands facing rising EM competition create…


Advertising Industry Gets Disrupted, as Central Bankers Fly Blind…

Japan TMT Analyst

Pelham Smithers

Market Intel on Asian Tech with a Japan focus

Pelham Smithers Associates

Founded in 2009, Pelham Smithers Associates (PSA) provides market intelligence on Asian technology, focusing in particular on Japan. The industries covered by our team of specialists are: consumer electronics, telecomms, pharmaceuticals, internet, electronic parts and materials, automotive technology, retail and capital goods. 

Research is provided by the following:
Pelham Smithers: Macro, consumer electronics, telecoms & pharma
Joel Scheiman: Electronics materials / components
Julie Boote: Autos
Will Nestuk: Capital goods, machinery & transportation equipment parts
Thao Nguyen: eCommerce, internet content, marketing & advertising

At first glance, <a href="https://www.smartkarma.com/entities/22213" target="_blank" data-smartkarma-citation="entities:22213:1">WPP's (WPP LN)</a> second sales warning of the year is merely a storyline in keeping with the growing “post-Brexit hangover” narrative which sees UK corporate earnings, having benefited initially from sterling’s weakness, now struggle, as consumption and capex decisions are delayed, pending clarity on the Brexit settlement. However, since WPP is a global company and generates just 13% of sales in the UK, this isn’t a very good explanation for its problems.First up, WPP’s problems…

At first glance, WPP's (WPP LN) second sales warning of the year is merely a storyline in keeping with the growing “post-Brexit hangover” narrative which sees UK corporate earnings, having benefited initially from sterling’s weakness, now struggle, as consumption and capex decisions are delayed, pending clarity on the Brexit settlement. However, since WPP is a global company and generates just 13% of sales in the UK, this isn’t a very good explanation for its problems.First up, WPP’s problems…

Negative Readthrough from WPP's Outlook Warning for Japanese Advertisers, Global Consumer Tech

United Kingdom

WPP is a British multinational communications, advertising, public relations, technology, and commerce holding company. It offers a comprehensive range of services including advertising, media planning and buying, public relations, brand consulting, and digital marketing. The company is headquartered in London, England, and was founded in 1971.

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WPP (WPP LN)

Best Ideas List for January 2019

The Best Ideas list is a compilation of stock ideas sourced from Morningstar’s global equity research team. With more than 100 analysts covering...

Morningstar, Inc.

Morningstar Management Behind the Moat 2018: Conference Highlights

Morningstar and PitchBook hosted the 10th annual Management Behind the Moat Conference in Chicago on Nov. 7 and 8, offering our institutional...

Morningstar, Inc.

With ‘Brand Building’ Ad Era Over, Can Food Inflation Rescue FMCG Margins?

I’ve been underweight consumer staples on valuation and business model disruption risks since 2015 and the sector has de-rated significantly...

Sean Maher

Advertising Industry Gets Disrupted, as Central Bankers Fly Blind…

We’ve seen a number of advertising sector profit warnings from Dentsu to WPP amid signs that key clients across the FMCG sector are questioning...

Sean Maher

Negative Readthrough from WPP's Outlook Warning for Japanese Advertisers, Global Consumer Tech

At first glance, WPP's (WPP LN) second sales warning of the year is merely a storyline in keeping with the growing “post-Brexit hangover” narrative...

Pelham Smithers Associates

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