Author: Dean Kim

Dean Kim is an Executive Director, Research Analyst for William O’Neil + Co.. Mr. Kim joined the firm to establish equity research coverage of the financial technology (“fintech”) sector. He has unique insight into the industry’s growth drivers, with broad experience covering the financial sector as an analyst and overhauling corporate business processes as a management consultant. Most recently, Mr. Kim served as Chief Financial Officer of Jios Aerogel Limited, a leading producer of the aerogel nanotechnology-based insulation material. As CFO, he raised more than $5 million in capital and managed liquidity, budgeting, and forecasting. Previously, he was an equity analyst for more than a decade. From 2007–2011, Mr. Kim headed equity research for BNP Paribas’ Korea office and simultaneously covered the banking sector, for which he was ranked number one by the Thomson Reuters/Joong-Ang Daily poll. He was also an equity analyst on Lehman Brothers' proprietary trading desk in Hong Kong, and on an Institutional Investor-ranked small cap team at UBS. Earlier in his career, Mr. Kim, an engineer, worked as a business process redesign specialist at Deloitte Consulting, analyzing the organization-wide processes of utilities and manufacturing companies. Mr. Kim earned a Bachelor’s degree in Electrical Engineering at Yale University, and an MBA from Columbia Business School. Outside of work, Mr. Kim enjoys coaching his kids’ soccer teams and traveling with his family.

Hypoport

Posted on by Dean Kim

Key points:

 

  • The stock is breaking out of a stage-two flat base. Add to positions if the stock can trade within the pivot zone above €450 with strong volume.
  • Fundamental ratings: EPS Rank 93, Composite Rating 93, SMR B.
  • Technical ratings: RS Rating 87, Up/Down Volume ratio 1.3, A/D Rating C+.

Euronext

Posted on by Dean Kim

Key points from this report:

 

  • The stock is breaking out from a flat base. We would recommend accumulating shares.
  • Fundamental profile: Composite Rating 98, SMR Rating A, EPS Rank 86. EPS is expected to grow 45% in 2020.
  • RS line is trending near its all-time highs. RS Rating of 88. Up/Down Volume ratio of 1.3. A/D Rating of B-.

Visa

Posted on by Dean Kim

Key points from this report:

 

•    The stock is marginally extended from an ideal entry point.
•    Strong fundamental ratings: SMR Rating A, Composite Rating 94, EPS Rank 94.
•    The average pretax margin and ROE for the last four years stand at 65% and 29%, respectively.
•    Technical ratings: RS Rating 80, Up/Down Volume ratio 1.0, A/D Rating B.

London Stock Exchange Group

Posted on by Dean Kim

Key points from this report:

 

  • The stock is forming the right side of a base with a pivot of 8,682p. For an aggressive entry, add to positions on a day with above average accumulation volume. A traditional entry would be at the pivot.
  • Fundamental profile: Composite Rating 98, SMR Rating B, EPS Rank 64. Its 2020 EPS growth estimate was recently revised upward to 76%.
  • Technically, the stock displays high O’Neil ratings and rankings, with an RS Rating of 93, RS line trending at all-time highs, A/D Rating of C+, and Up/Down Volume ratio of 1.3.

Coresite Realty

Posted on by Dean Kim

Key points from this report:

 

  • The stock broke out of a 25-week flat consolidation and is currently actionable.
  • Fundamental profile: SMR Rating B. Composite Rating 86.
  • The stock’s RS line is staging an upward move. RS Rating 88. Up/Down Volume ratio 1.3. A/D Rating B.

Adyen

Posted on by Dean Kim

Key points from this report:

 

  • The stock broke out of a 10-week stage-two cup base on April 30.
  • Strong fundamental profile: EPS Rank 98, Composite Rating 99, SMR Rating A.
  • Technical ratings: RS Rating 94, Up/Down Volume ratio 0.9, A/D Rating B-.
  • Institutional sponsorship has more than tripled y/y to 1,004 in December 2019

Tradeweb

Posted on by Dean Kim

Key points from this report:

 

  • The stock recently broke out of a base and is currently actionable. Despite a volatile general market, its technical profile remains strong.
  • The company has a strong fundamental profile: SMR Rating A, Composite Rating 96, EPS Rank 86. Tradeweb has good track record of reporting stable growth, shown in its Earnings Stability Rating of 3. EPS growth estimates for 2020 and 2021 were recently revised upward to 29% and 5%, respectively.
  • Its RS line is trending near all-time highs with a strong RS Rating of 95. A/D Rating of A and Up Down Volume ratio of 1.5.

PayPal Holdings

Posted on by Dean Kim

Key points:

 

  • The stock is currently forming the right side of a cup base.
  • Fundamental ratings: SMR Rating A, Composite Rating 96, EPS Rank 94.
  • Superior profitability accelerates ROE and pretax margin.
  • Technical ratings: RS line is trending higher, RS Rating 89, A/D Rating B-.

Indian Banks

Posted on by Dean Kim

Key points from this report:

 

  • We performed a scenario analysis of select Indian banks to see the magnitude of potential book value impairments when charging off 10% and 20% of SME loans.
  • We found that HDFC Bank (HFC.IN), Kotak Mahindra Bank (KOK.IN), Bandhan Bank (NDB.IN), and Indusind Bank (IBK.IN) have decent risk-reward as potential longer-term investments. Even with a 20% charge-off of SME loans, their book value impairments have already been priced in during the March selloff. In addition, their current PBV valuations are approaching historical lows.
  • For investors with multi-year investment horizons, these four banks may be attractive candidates.
  • However, from our O’Neil Methodology perspective, we would wait until these stocks break above the 200-DMA before we act.

European Banks

Posted on by Dean Kim

Attached is a note on European Banks from Executive Director, Research Analyst Dean Kim and William O’Neil India Analyst Suman Patra. In this note, we performed a what-if scenario analysis of a group of banks in the U.K., Germany, France, Italy, Spain, and Greece to see how much of their book values would be impaired when applying historically high NPL rates.