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.: Pretium Resources Inc ( PVG ), Dorman Products ( DORM ), Live Nation Entertainment ( LYV ), Chart Industries Inc ( GTLS ), Selective Ins Group ( SIGI ), Waters Corp ( WAT ), Wingstop ( WING ), Mercadolibre ( MELI ), Corning ( GLW ), Verisign Inc ( VRSN ).

 

Developed: Heineken ( HB.NL; HEIA NA ), Dexus Stapled ( DXS.AU; DXS AU ), Evotec ( EVTX.DE; EVT GR ), Computershare ( CPU.AU; CPU AU ).

 

Emerging: Hyundai Motor ( HDR.KR; 005380 KS ), Ambev On ( AVS.BR; ABEV3 BZ ), Sk Innovation ( SBG.KR; 096770 KS ), KB Financial Group ( KHB.KR; 105560 KS ),

Xero

Posted on by Cornelio Ash

Key points:

 

  • Excellent H1 FY20 print. Xero reported operating revenue of NZD 338.7M ( +32% y/y , including subscription revenue of NZD 327.9M ( +32% y/y ). Operating revenue in Australia grew by 25%, led by the country’s Single Touch Payroll initiative. Annualized monthly recurring revenue increased 30% y/y to NZD 764M.
  • The stock gapped up 9% from a flat base consolidation after reporting better-than-expected H1 FY20 results.
  • Fundamental ratings: EPS Rank 84, Composite Rating 91, SMR Rating B.
  • Technical ratings: The stock is under accumulation with an RS line at highs, RS Rating of 82, and A/D Rating of C+.

Global Laggards

Posted on by Cornelio Ash

Highlighted Charts

 

U.S.: Axon Enterprise ( AAXN ), Korn Ferry ( KFY ), Dorman Products ( DORM ), Ambev ( ABEV ), Loews ( L ), Livanova ( LIVN ), Childrens Place ( PLCE ), Ciena ( CIEN ).

 

Developed: Amcor ( AMC.AU; 1723503D AU ), Persol ( TMHD.JP; 2181 JP ), Pirelli ( PIRL.IT; PIRC IM ), Anheuser-busch ( ABI.BE; ABI BB ), China Pacific Insurance ( CHPX.HK; 2601 HK ), Ambu ( AMB.DK; AMBUB DC ), Seiko Epson ( SEEP.JP; 6724 JP ).

 

Emerging: Thai Oil ( THOI.TH; TOP TB ), KB Financial Group ( KHB.KR; 105560 KS ), Phison Elctronics ( PHE.TW; 8299 TT ).

Microsoft

Posted on by Cornelio Ash

Key points:

 

  • The stock is breaking out of a base-on-base pattern, turning actionable.
  • Fundamental ratings: EPS Rank 96, top SMR Rating of A, highest Composite Rating of 99.
  • Technical ratings: RS line at new highs, RS Rating 93, A/D Rating B+.

Global Laggards

Posted on by Cornelio Ash

Highlighted Charts

 

U.S.: Sanderson Farms ( SAFM ), Firstcash ( FCFS ), Caredx ( CDNA ), Darden Restaurants ( DRI ), Dell ( DELL ), Mimecast (

), Vonage Holdings (

).

 

Developed: Ccl ( CCL/B.CA; CCL/B CN ), Persol Holdings ( TMHD.JP; 2181 JP ), Pirelli ( PIRL.IT; PIRC  IM ), Remi Cointreau ( RCO.FR; RCO FP ), Imperial Oil ( IMO.CA; IMO CN ), Link REIT ( LREI.HK; 823 HK ), Evotec ( EVTX.DE; EVT GR ), The Swatch Group ( UHR.CH; UHR SW ), Venture ( VEMA.SG; VMS SP ), Persol Holdings ( TMHD.JP; 2181 JP  ), SG Holdings ( SGHS.JP; 9143 JP ).

 

Emerging: Atacadao Distribuicao ( CRF.BR; CRFB3 BZ ).

Global Laggards

Posted on by Cornelio Ash

Highlighted Charts

U.S.: Korn Ferry ( KFY ), Graham Holdings ( GHC ), ROKU ( ROKU ), JM Smucker ( SJM ), Canadian Solar ( CSIQ ), Interactive Brokers ( IBKR ), Caredx ( CDNA ), Wayfair ( W ), Ciena ( CIEN ).

Developed: Mineral Resources ( MIN.AU; MIN AU ), Spirax-Sarco Engineering ( SPX.GB; SPX LN ), Informa ( INF.GB; INF LN ), Reckitt Benckiser ( RB.GB; RB LN ), Hiscox ( HSX.GB; HSX LN ), GN Store Nord ( GSN.DK; GN DC ), DENA ( DENA.JP; 2432 JP ).

Emerging: Uni-President ( PRE.TW; 1216 TT ), Central Pattana ( CPN.TH; CPN TB ), Phison Electronics ( PHE.TW; 8299 TT ).

Global Laggards

Posted on by Cornelio Ash

Highlighted Charts

 

U.S.: Robert Half International ( RHI ), Borg Warner Inc ( BWA ), U G I Corp ( UGI ), Credicorp ( BAP ), Innovative Industrial Properties ( IIPR ), Waters Corp ( WAT ), Best Buy ( BBY ), Tiffany & Co. ( TIF ), Xerox ( XRX ), Varonis Systems ( VRNS ).

 

Developed: Mineral Resources ( MIN.AU; MIN AU ), Ccl ( CCL/B.CA; CCL/B CN ), Persol Holdings ( TMHD.JP; 2181 JP ), Continental AG ( CONX.DE; CON GR ), China Pacific Insurance ( CHPX.HK; 2601 HK ), Evotec ( EVTX.DE; EVT GR ), Canon ( CN@N.JP; 7751 JP ), SG Holdings ( SGHS.JP; 9143 JP ).

 

Emerging: Lg Chemical Ltd ( LCM.KR; 051910 KS ), Siam Cement ( SCQT.TH; SCC TB ), Phison Electronics ( PHE.TW; 8299 TT ).

Global Technology Sector-Software

Posted on by Cornelio Ash

Some highlights from this report:

  • The Software ETF ( IGV ) has been under pressure for almost three months and is currently testing support at its 200-DMA. Many former software leaders are more than 25% off highs.
  • In the short term, we are more selective on software due to weak Q3 FY19 expectations. IGV constituents are expecting median Q3 revenue and EPS growth of 15% and 0%, respectively. This could potentially be the weakest earnings growth quarter in more than three years.
  • However, over the long term, we remain bullish on software as secular drivers ( cloud adoption, AI ) remain intact. Gartner estimates global spending on software will remain strong over the next several years primarily due to AI.
  • We advise focusing on stocks with strong earnings visibility into FY20.

Global Laggards

Posted on by Cornelio Ash

Highlighted Charts

 

 

U.S.: Grace WR ( GRA ), CNH Industrial ( CNHI ), Robert Half  ( RHI ), Korn Ferry ( KFY ), Vonage Holdings ( VG ), Sabre Corporation ( SABR ), Comerica ( CMA ), LHC Group ( LHCG ), Groupon ( GRPN ), Texas Roadhouse ( TXRH ), Viasat ( VSAT ), Ciena Corporation ( CIEN ), Corning ( GLW ).

 

Developed: Johnson Matthey ( JMAT.GB; JMAT LN ), Sumitomo Heavy Industries ( OZ@N.JP; 6302 JP ), Kubota ( KU@N.JP; 6326 JP ), Continental AG ( CONX.DE; CON GR ), A2 Milk Company ( A2M.AU;A2M ASE ), Subsea 7 ( SUBC.NO; SUBC NO ), Royal Bank of Scotland ( RBS.GB; RBS LN ), Evotec ( EVTX.DE; EVT GR ), Kingfisher ( KGF.GB; KGF LN ), Infineon ( IFXX.DE; IFX GR ), Nippon Express ( NX@N.JP; 9062 JP ).

 

Emerging: Lg Chemical Ltd ( LCM.KR; 051910 KS ), Uni-President Ents. ( PRE.TW; 1216 TT ), Bank Rakyat Indonesia ( BRI.ID; BBRI IJ ), Hon Hai ( HON.TW; 2317 TT ).