Daily BriefsTMT/Internet

TMT: Hong Kong Hang Seng Index, Snap Inc, Mphasis Ltd and more

In today’s briefing:

  • Asia Long/Short Trades
  • Snap: Forget Twitter, Look Out Facebook
  • Mphasis (HOLD): Direct business growth negates shortfall in DXC raise to HOLD

Asia Long/Short Trades

By Thomas Schroeder

Asia market long ideas into weakness are challenging with short themes dominating in Japan, HK and Korea (next to buckle). ASX banks tops our long list followed by bottom digging in HK tech. Taiwan is resting on bull/bear support.

A clear bear lean is noted in Asia and parts of Europe compared to the US powerhouse upcycle that is near a tactical topping zone. Our cycle work calls for a ST US top today/Monday for a dip and then upside re test in late July with August seasonality turning bearish. Asia will front run a US top.

Snap: Forget Twitter, Look Out Facebook

By Aaron Gabin

Just a monster quarter. The type Facebook used to print in 2015. We’ve been pushing Snap as a core long since the beginning of the pandemic. We continue to push Snap as a core long…and are probably even more bullish today then we were a year ago. Facebook’s market cap is 10x Snap’s. We would bet that gap closes rapidly.

Obex’s fundamental research process is focused on secular change in the TMT and Consumer sectors. We seek to differentiate between fundamental business analysis and security analysis. Before deciding if a security’s pricing and positioning merit a long or short position, we analyze the four pillars of business fundamentals (Secular Factors, TAM, Competitive Advantage, Business Model) in order to determine if this is a “good” or “not so good” opportunity.

Mphasis (HOLD): Direct business growth negates shortfall in DXC raise to HOLD

By BOB Capital Markets Ltd.

MPHL grew 6.3% QoQ USD in Q1, outperforming our (4%) and street estimates. EBIT margin was a miss at 15.9% due to the pandemic impact

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