Author: Cornelio Ash

Cornelio Ash is a senior equity analyst and member of the U.S. Focus List and the Global Focus List Committees, which approves all equity recommendations for developed, emerging, and frontier markets. He is also a lead for the Technology sector and specializes in the Americas region. Cornelio joined the firm in 2005 and received his B.A. in Finance from California State University, Northridge. He holds a Series 65 securities license.

Global Laggards

Posted on by Cornelio Ash

Highlighted Charts

 

U.S.: Graftech International ( EAF ), Spirit Aerosystems ( SPR ), Live Nation Entertainment ( LYV ), Mack-Cali Realty ( CLI ), Livanova ( LIVN ), Interdigital ( IDCC ), Sprint Corp ( S ), MongoDB ( MDB ).

 

Developed: Ccl ( CCL/B.CA; CCL/B CN ), Dentsu ( DENN.JP; 4324 JP ), Britvic ( BVIC.GB; BVIC LN ), Hang Lung Properties ( AMOY.HK; 101 HK ), Swedish Orphan ( SOBI.SE; SOBI SS ), Metro Ag ( B4BX.DE; B4B GR ), Dena ( DENA.JP; 2432 JP ), SG Holdings ( SGHS.JP; 9143 JP ).

 

Emerging: Polski Koncern Naftowy Orlen (PLK.PL; PKN PW), Cp All (CPSE.TH; CPALL TB).

HealthEquity

Posted on by Cornelio Ash

Key points:

 

  • HQY has bottomed since the acquisition of WageWorks and recently regained its 200-DMA. Although significant levels of technical resistance (overhead supply) remain, we advise investors to remain patient and accumulate shares as the stock regains and holds above key levels of resistance (see chart).
  • HQY is a market share leader in accounts (#1) and AUM (#2) and is growing faster than the industry with 5M HSA (+37% y/y) and $10.5B AUM (+48% y/y).
  • Post acquisition of WageWorks, HQY’s TAM has expanded by $3B (HRA, COBRA, FSA) to $13B. The combined entity will cover two-thirds of the Fortune 100 and is poised to realize annualized synergies of ~$50M over the next 2–3 years.

Global Laggards

Posted on by Cornelio Ash

Highlighted Charts

U.S.: Textron ( TXT ), Nielsen ( NLSN ), Middleby Corp ( MIDD ), Roku ( ROKU ), Regency Centers ( REG ), Cantel Medical ( CMD ), Cheesecake Factory ( CAKE ), Shake Shack ( SHAK ), Telephone and Data Sys ( TDS ), Semtech ( SMTC ).

Developed: Incitec Pivot ( IPL.AU; IPL AU ), Cleanaway Waste Management ( CWY.AU; CWY AU ), Persol ( TMHD.JP; 2181 JP ), Telefonica ( TEF.ES; TEF SM ), Diageo ( DGE.GB; DGE LN ), Equinor ( EQNR.NO; EQNR NO ), 3i Group ( III.GB; III LN ), Recordati ( REC.IT; REC:IM ), Compass Group ( CPG.GB; CPG LN ), Ana Holdings ( ANAW.JP; 9202 JP ).

Emerging: Siam Cement ( SCQT.TH; SCC TB ), Sun TV Network ( NSV.IN; SUNTV IN ), Kt & G ( KTB.KR; 033780KS ), Ptt ( PTTB.TH; PTT TB ), Cp All ( CPSE.TH; CPALL TB ).

Stocks worth focusing on in this week’s Global Laggards:

Shake Shack ( SHAK ) – Retail; $2B market cap – Operates 208 fast-casual restaurants offering burgers, hot dogs, fries and shake

Global Technology Sector-Software

Posted on by Cornelio Ash

Some highlights from this report:

 

  • The Software ETF ( IGV ) is back near all-time highs after consolidating for five months, however not all constituents are under accumulation. We believe it’s time to be selective across Software.
  • For Q3 FY19, IGV constituents reported better-than-feared results ( median revenue/EPS growth of 17% /13% y/y ), however earnings growth continues to decelerate year-over-year. Early glance at Q4 FY19 expectations remains weak.
  • Focus on stocks under accumulation and  that are bucking the earnings trough, including Fortinet ( FTNT ) and Splunk (

    ).

Global Laggards

Posted on by Cornelio Ash

Highlighted Charts

 

U.S.: Ball Corp ( BLL ), World Wrestling Entertainment ( WWE ), Coca-Cola European Partners ( CCEP ), UGI Corp Holdings ( UGI ), Empire State Rlt Tr ( ESRT ), Glaukos ( GKOS ), eBay ( EBAY ), Belden ( BDC ), Blackbaud ( BLKB ).

 

Developed: Incitec Pivot ( IPL.AU; IPL AU ), Informa ( INF.GB; INF: LN ), Ajinomoto ( AJ@N.JP ), Link REIT ( LREI.HK; 823 HK ), Peptidream ( PETI.JP; 4587:JP ), Tesco ( TSCO.GB; TSCO LN ), Morrison ( MRW.GB; MRW LN ), Capgemini ( CAP.FR; CAP FP ).

 

Emerging: Bidvest Group ( BVTJ.ZA ), S-Oil ( SSO.KR; 010950 KS ), Woolworths (WHLJ.ZA; WHL SJ ), Intouch Holdings ( SHNW.TH; INTUCH: TB ), Interglobe Aviation ( VGA.IN; INDIGO IN ).

Global Laggards

Posted on by Cornelio Ash

Highlighted Charts

U.S.: Cubic Corp ( CUB ), Colgate Palmolive ( CL ), Parsley Energy Inc ( PE ), Interactive Brokers ( IBKR ), Glaukos Corporation ( GKOS ), Kar Auction Services ( KAR ), Ciena ( CIEN ), Liberty Global ( LBTYA ), Hubspot ( HUBS ).

 

Developed: Incitec Pivot ( IPL.AU; IPL AU ), China Tower Corp ( CHTW.HK; 788 HK ), Unilever ( ULVR.GB; ULVR LN ), CK Asset Holdings ( CKPH.HK; 1113 HK ), Evotec ( EVTX.DE; EVT GR ), Telefonica ( TEF.ES; TEF SM ), Link Administration ( LNK.AU; LNK AU ).

 

Emerging: Kt & G ( KTB.KR; 033780 KS ), S-Oil ( SSO.KR; 010950 KS ), Industrial Bank of Korea ( IBK.KR; 024110 KS ), Atacadao Distribuicao ( CRF.BR; CRFB3 BZ ).

Global Laggards

Posted on by Cornelio Ash

Highlighted Charts

 

U.S.: Sealed Air ( SEE ), News Corporation ( NWSA ), JM Smucker ( SJM ), U G I ( UGI ), Empire State Rlt Tr ( ESRT ), Neogen ( NEOG ), Kar Auction Services ( KAR ), Ciena ( CIEN ), 8X8 ( EGHT ).

 

Developed: Yara International ( YARA.NO; YAR NO ), Kajima ( KC@N.JP; 1812 JP ), Persol Holdings ( TMHD.JP; 2181 JP ), Continental AG ( CONX.DE; CON GR ), Meji ( MEJH.JP; 2269 JP ), Dcc ( DCC.GB; DCC LN ), Hang Lung Properties ( AMOY.HK; 101 HK ), Evotec ( EVTX.DE; EVT GR ), Canon ( CN@N.JP; 7751 JP ).

 

Emerging: Siam Cement ( SCQT.TH; SCC TB ), ITC ( IT.IN; ITC IN ).

ServiceNow Inc

Posted on by Cornelio Ash

Key points:

 

  • The stock is up 3% and forming the right side of a 19-week consolidation on above average volume. Buy.
  • Fundamental ratings: EPS Rank of 98, Composite Rating of 97, SMR Rating of A.
  • Technical ratings: RS line flat, RS Rating of 87, and A/D Rating of B-.

Global Laggards

Posted on by Cornelio Ash

 

 

Highlighted Charts

 

U.S.: Robert Half ( RHI ), Church & Dwight ( CHD ), UGI Corporation Holdings ( UGI ), Axis Capital ( AXS ), Cantel Medical Corp ( CMD ), Children’s Place ( PLCE ), Juniper Networks ( JNPR ), Liberty Global ( LBTYK ), CH Robinson Worldwide ( CHRW ).

 

Developed: Evolution Mining ( EVN.AU; EVN AU ), Sumitomo Heavy Industries ( OZ@N.JP; 6302 JP ), Goldwin ( GLDW.JP; 8111 JP ), Tryg ( TRY.DK; TRY DC ), Peptidream ( PETI.JP; 4587 JP ), SES Fdr ( SESG.FR; SESG FP ), Dena ( DENA.JP; 2432 JP ), MTR Corporation Limited ( MTRC.HK; 66 HK ).

 

Emerging: Siam Cement ( SCQT.TH; SCC TB ), Sk Innovation ( SBG.KR; 096770 KS ), Remgro ( REMJ.ZA; REM SJ ).