Author: Derek Higa

Derek Higa is a senior equity analyst and a lead for the APAC region and the Consumer Cyclical sector. He serves on the Global Focus List Committee, which approves all equity recommendations for developed, emerging, and frontier markets, and compiles Asia Watch, a weekly recap of regional investing news. Since joining William O’Neil + Company in 2005, he has lent his market expertise to alpha capture, product development, and historical studies on outperforming stocks. Derek graduated summa cum laude from California State University Los Angeles with a B.S. in Finance and Information Systems. He holds a Series 65 securities license.

APAC Market Update

Posted on May 31, 2019May 31, 2019 by Derek Higa

Key points:

We are downgrading Japan to a Downtrend as the Nikkei 225 has failed to hold above the 200-DMA. It is now trading below the May 14 low when it had an intraday upside reversal. We view next support near ~20,300 followed by December lows of ~18,900.

We have turned more cautious on the Japanese market and recommend raising cash if possible or keeping a defensive approach.

Out of our five Japanese Focus List ideas, Asahi Intecc ( AS@H.JP; 7747:JP ), Fast Retail ( RETA.JP; 9983:JP ), SG Holdings ( SGHS.JP; 9143:JP ), and Peptidream ( PETI.JP; 4587:JP ) are the most under pressure. Recruit Holdings ( RHCL.JP; 6098:JP ) is the only idea holding more than 5% above its 50-DMA.

See attached report for ideas with low beta and Relative Strength near highs.

Info Edge breaking out to all-time highs, Actionable

Posted on May 30, 2019May 30, 2019 by Derek Higa

Key points from the report:

Shares broke out of a five-week flat base on above average volume and are currently actionable.

On May 28, the stock declined around 1.5% intraday and later recovered after announcing its FY19 results to close up 2.7%. It has gained ~11% in the past three days.

Stellar fundamental ratings: Composite Rating 98, SMR Rating A, EPS Rank 68.

Solid technical ratings: RS Rating 94, A/D Rating A.

The number of funds holding the stock increased to 186 as of March 2019 from 116 as of March 2018.

APAC Weekly Summary

Posted on May 29, 2019May 29, 2019 by Derek Higa

Key points from this week’s report:

Both Hong Kong and Taiwan were downgraded to a Downtrend last week as the indices failed to hold above respective 200-DMA support.

In Hong Kong, the sectors with the most stocks holding above their 200-DMA are Financial, Consumer Staple, and Utility.

Average A/D Rating of Hong Kong Consumer Staple, Retail, and Health Care remain positive, indicating accumulation in these sectors.

We shifted India back to a Confirmed Uptrend. This is following election results and the Sensex closing at all-time highs.

Indian Financials have gained 15% year-to-date, outperforming the broad market gain of 10.2%.

Highlighted Focus List Ideas: HDFC (HDF.IN; HDFC: IN); RBL Bank (RB2.IN; RBK: IN). Refer to annotated Datagraphs™ on page 10–11.

See our actionable Focus List ideas on page 12.

APAC Weekly Summary

Posted on May 22, 2019May 23, 2019 by Derek Higa

Key points from this week’s report:

Overall, we continue to recommend a cautious approach as the number of distribution days remains elevated across APAC markets. We recommend limiting buys to stocks with RS near highs.

Following Australia’s elections, Retail, Financial, and large-cap stocks are leading. In India, small-cap stocks are leading as the market awaits election results. For Australian and Indian ideas near pivot, see our lists on pages 3 and 7.

Highlighted Australian Focus List ideas: Xero (

) and A2 Milk (

). Refer to annotated charts on pages 8 and 9.

See actionable Focus List ideas on page 11.

APAC Weekly Summary

Posted on May 15, 2019May 15, 2019 by Derek Higa

Key points from this week’s report:

The majority of APAC markets remain in an Uptrend Under Pressure and the number of distribution days remains elevated (median of 4.5 among all APAC markets).

We remain cautious as markets remain volatile. We highlight resilient Focus List ideas on page 3 and low-beta stocks on page 8.

The Consumer Staple sector (WS005.R3) is outperforming other sectors. Stocks in this sector that are near the pivot range are listed on page 4.

Highlighted Consumer Staple Focus List idea: Tsingtao Brewery ‘H’ ( TSIN.HK ).

See actionable Focus List ideas on page 9.

APAC Weekly Summary

Posted on May 8, 2019May 8, 2019 by Derek Higa

Key points from this week’s report:

We shifted China, Hong Kong, Japan, and India to an Uptrend Under Pressure this week and have become more cautious overall. The number of distribution days is rising (median of four among all APAC markets).

We recommend a more cautious approach. Continue to trim extended ideas and look to reduce those trading below support levels.

This week, we focus on India’s market. We are looking for the Sensex to consolidate near highs to remain constructive.

Indian large caps continue to be among the most constructive in APAC. In particular, Financial and Technology large caps have outperformed in India.

Highlighted Focus List ideas: Kotak Mahindra ( KOK.IN; KMB:IN ) and Tata Consultancy ( TSE.IN; TCS:IN).

See our list of actionable ideas on page 11.

APAC Weekly Summary

Posted on May 1, 2019May 2, 2019 by Derek Higa

Key points from this week’s report

After a rough week, China A-shares are still in a Confirmed Uptrend.

CSI 300 has three distribution days and is holding above the 50-DMA. Volume remains low. Above all, we believe large cap stocks are still healthy.

Among China A-shares, large-cap stocks are outperforming on a relative basis in the shorter term ( five-day, four-week, and eight-week periods).

In our China Sector Rotation Graph, Consumer Staples stands out.

Large-cap Staples performance has been remarkable, even during last week’s pullback.

Highlighted CAFL Ideas: Jiangsu Hegrui Medicine ( JHM.CN; 600276: CH ) and China International Travel Service ( CTS.CN; 601888.CH ).

See our list of actionable ideas on page 10.

APAC Weekly Summary

Posted on April 24, 2019April 25, 2019 by Derek Higa

Key points from this week’s report

Market conditions and sentiment haven’t changed. The majority of APAC markets remain in a Confirmed Uptrend.

Distribution days are low at 2.4 on average.

Retail has led the last five days and is among the top outperformers over the last 13 weeks. Focus List Ideas Haidilao ( HAIN.HK; 6862: HK ) and Titan ( TIT.IN; TTAN: IN ) are among the most extended on our Focus List ( for HAIN.HK datagraph see below and page five ).

See our included list on page six for other extended ideas on and off our Focus List.

Highlighted recent additions to our Focus List: TSMC ( TSM.TW; 2330: TT ), Energy Absolute ( ENAP.TH; EA: TB ), and Peptidream ( PETI.JP; 4587: JP )

See our list of actionable ideas on page 10.

April 18, 2019 – Is Old Media Poised for a Resurgence?

Posted on April 18, 2019April 29, 2019 by Derek Higa

Disney’s incredible breakout means yet another Old Media stock is showing signs of leadership this year. In this week’s webinar, which will be available in Research View in PANARAY or on our website any time after 11am ET on Thursday, April 18, William O’Neil + Co. Director, Research Analyst Derek Higa will profile leading ideas in Internet/media and analyze developing trends like connected TV, OTT competition, and privacy regulation.