Author: Romeo Alvarez

Romeo Alvarez is a senior equity analyst at William O’Neil + Co., a registered investment advisor serving 400 top-performing institutional portfolio managers worldwide. The firm employs 150 associates in Los Angeles, New York, Boston, and London. Based in the firm’s Los Angeles office, Mr. Alvarez is a senior equity analyst covering the Americas region and a member of the Global Focus List Committee, which approves all equity recommendations for developed, emerging, and frontier markets. Romeo also selects equity initiations to be covered in the Technology sector and regularly reports to clients on innovation and technology developments in Trend Watch. Mr. Alvarez earned a B.S. in Business Economics from the University of California, Riverside, and an MBA with a focus in Finance from Loyola Marymount University, Los Angeles.

LATAM Weekly Summary

Posted on by Romeo Alvarez

Key points from this week’s report:

Please refer to the attached PDF for the full report.

 

  • Brazil’s Bovespa gained 0.9% last week. The index remains in an Uptrend Under Pressure with three distribution days. We recommend clients selectively add risk in Brazilian equities.
  • Mexico’s benchmark index gained 1.3% last week as it bounced off support at the 50-DMA. The index remains in an Uptrend Under Pressure with three distribution days. We recommend clients selectively add risk in Mexican equities.
  • The total number of Focus List ideas in the LATAM region remains at eight. Smartfit (SED.BR; SMFT3:BZ) is attempting to break out of a flat base.
  • Stocks of interest: Grupo Mexico (GME.MX; GMEXICOB:MM), Banco del Bajio (BJI.MX; BBAJIOO:MM), Cielo (VIS.BR; CIEL3:BZ), Cyrela (3CY.BR; CYRE3:BZ), Porto Seguro (PSO.BR; PSSA3:BZ) and Gps (GPE.BR; GGPS3:BZ).

O’Neil TMT Weekly

Posted on by Romeo Alvarez

Software (IGV): The software benchmark pulled back less than 1% and continues to consolidate in a flat base. IGV is testing support
at the 50-DMA ($85). Quantitative metrics are steady, with A/D number Rating turning positive and Up/Down Volume ratio above 1. RS
line has pulled back from its year-to-date highs over the last few weeks. Of the 11 software groups, five groups are ranked in the top
50 O’Neil groups. However, only three groups showed an improvement in Group Rank over the last four weeks. The remaining groups
showed a decline in Group Rank over the same period with Security/Desktop/Gaming/Design Software and Tech Services registering
the steepest declines. Overall, we continue to remain cautiously constructive on the IGV and its constituents as the index continues to
consolidate along moving average support. Trim extended ideas and those breaching key support levels with declining relative
strength.

LATAM Weekly Summary

Posted on by Romeo Alvarez

Key points from this week’s report:

Please refer to the attached PDF for the full report.

 

  • Brazil’s Bovespa gained 0.2% last week, but hit resistance at the 50-DMA. The index remains in an Uptrend Under Pressure with three distribution days. We recommend clients selectively add risk in Brazilian equities.
  • Mexico’s benchmark index gained 0.7% last week and reclaimed its 50-DMA. The index remains in an Uptrend Under Pressure with four distribution days. We recommend clients selectively add risk in Mexican equities.
  • Last week, we removed Globant (GLOB) from the Focus List, reducing the total number of Focus List ideas in the LATAM region to eight. Smartfit (SED.BR; SMFT3:BZ) is actionable.
  • Stocks of interest: Grupo Mexico (GME.MX; GMEXICOB:MM), Banco del Bajio (BJI.MX; BBAJIOO:MM), Porto Seguro (PSO.BR; PSSA3:BZ), Cyrela (3CY.BR; CYRE3:BZ) and Gps Part. (GPE.BR; GGPS3:BZ).

O’Neil TMT Weekly

Posted on by Romeo Alvarez

Software (IGV): The software benchmark rose ~2.9%, reclaimed its 50-DMA and is attempting to form the right side of a flat base.
Quantitative metrics are mixed as A/D Rating has turned negative while the Up/Down Volume Ratio is above 1. RS line has pulled
back slightly from its year-to-date highs over the last few weeks. Of the 11 software groups, six are in the top 50 O’Neil groups, only
one group (Computer Software-Database) showed an improvement in Group Rank over the last four weeks. The remaining groups
showed a decline in Group Rank over the same period, with Security/Desktop/Gaming Software and Tech Services registering the
steepest declines. Overall, we continue to remain cautiously constructive on the IGV and its constituents as long as the index
continues to consolidate along its 50-DMA. Focus on large cap leaders with good relative strength (MSFT, ORCL, CRM, NOW). Trim
extended ideas and those breaching key support levels with declining relative strength.

LATAM Weekly Summary

Posted on by Romeo Alvarez

Key points from this week’s report:

Please refer to the attached PDF for the full report.

  • Brazil’s Bovespa declined 0.3% last week. The index remains in an Uptrend Under Pressure and has three distribution days. We recommend clients selectively add risk in Brazilian equities.
  • Mexico’s benchmark index rallied 2.4% last week. The index remains in an Uptrend Under Pressure with five distribution days. We recommend clients selectively add risk in Mexican equities.
  • The total number of Focus List stocks in the LATAM region remains at nine.
  • Stocks of Interest: Banco do Brasil (IO3.BR; BBAS3:BZ), Cyrela (3CY.BR; CYRE3:BZ), Porto Seguro (PSO.BR; PSSA3:BZ), Inter (IP9.BR; INBR32:BZ), Grupo Mateus (GMO.BR; GMAT3:BZ), Banco del Bajio (BJI.MX; BBAJIOO:MM) and Arca Continental (ARC.MX: AC*:MM). Additional ideas are listed on page 3.

O’Neil TMT Weekly

Posted on by Romeo Alvarez

Software (IGV): The software benchmark broke below the 50-DMA after declining ~1.6% last week and remains in a consolidation.
The next level of support is near $82, which coincides with the top of the prior flat base, followed by the rising 100-DMA ($80).
Quantitative metrics are mixed. Numerical A/D Rating has turned negative and RS line continues to drift lower. However, Up/Down
Volume ratio is at 1. While six of the 11 software groups are in the top 50 O’Neil groups, only one group (Computer Sftwr-Database)
showed an improvement in Group Rank over the last four weeks. The remaining groups showed a decline in Group Rank over the
same period, with Computer Sftwr-Enterprse and Computer-Tech Services registering the steepest declines. ACN will report earnings
on Thursday. Overall, we remain cautious on software names as the IGV and its constituents continues to consolidate. However, we
would be more concerned on a breach of support at the rising 100-DMA. Trim extended ideas and those breaching key support levels
with declining relative strength.

LATAM Weekly Summary

Posted on by Romeo Alvarez

Key points from this week’s report:

Please refer to the attached PDF for the full report.

 

  • Brazil’s Bovespa declined 1.6% last week. The index remains in a Confirmed Uptrend with three distribution days. We recommend clients add risk in Brazilian equities.
  • Mexico’s benchmark index declined 1.1% last week. The index remains in an Uptrend Under Pressure with five distribution days. We recommend clients selectively add risk in Mexican equities.
  • The total number of Focus List stocks in the LATAM region remains at nine. Alsea (ALE.MX; ALSEA*:MM) will be actionable on a break above MXN 68.50.
  • Stocks of Interest: Porto Seguro (PSO.BR; PSSA3:BZ), Embraer (EA3.BR; EMBR3:BZ), Inter (IP9.BR; INBR32:BZ), Cyrela (3CY.BR; CYRE3:BZ) and Grupo Mateus (GMO.BR; GMAT3:BZ).

O’Neil TMT Weekly

Posted on by Romeo Alvarez

Software (IGV): The software benchmark declined ~2% and continues to consolidate along its 50-DMA ($83). Quantitative metrics
are mixed, with A/D Rating of C+ and Up/Down Volume ratio slightly below 1. Six of the 11 software groups are in the top 50 O’Neil
groups. Overall, only three of the groups showed an improvement in Group Rank over the last four weeks – Computer SftwrDatabase, Computer-Data Storage, and Computer Sftwr-Medical. The remaining groups showed a decline in Group Rank over the
same period with Computer Sftwr-Desktop (#157) and Computer Sftwr-Design (#83) registering the steepest decline. Notable
earnings this week include ORCL (03/11), PATH (03/13), S (03/13), and ADBE (03/14). Overall, we remain cautiously constructi

LATAM Weekly Summary

Posted on by Romeo Alvarez

Key points from this week’s report:

Please refer to the attached PDF for the full report.

 

  • Brazil’s Bovespa declined 0.2% last week, but remains in a Confirmed Uptrend with only two distribution days. We recommend clients add risk in Brazilian equities.
  • Mexico’s main benchmark index declined 2.0% last week. The index was shifted to an Uptrend Under Pressure from a Confirmed Uptrend. We recommend clients selectively add risk in Mexican equities.
  • Last week, we removed Gruma (GRM.MX; GRUMAB:MM) from the Focus List, reducing the total number of Focus List ideas in the LATAM region to nine. Alsea (ALE.MX; ALSEA*:MM) is actionable.
  • Stocks of Interest: Inter (IP9.BR; INBR32:BZ), Grupo Mateus (GMO.BR; GMAT3:BZ) and Cyrela Brazil Realty (3CY.BR; CYRE3:BZ).

O’Neil TMT Weekly

Posted on by Romeo Alvarez

Software (IGV): The software benchmark gained ~2.6% and has reclaimed all its moving averages after a sharp pullback below its
50-DMA last week. Quantitative metrics are mixed, with A/D Rating turning positive, while Up/Down Volume ratio has weakened to 1.0.
RS line also continues to trade sideways. Six of the 11 software groups are in the top 50 O’Neil groups. Overall, only two groups
showed an improvement in Group Rank over the last four weeks – Computer Software-Database and Computer Software-Medical.
The rest of the groups showed a decline in Group Rank over the same period with Computer Software-Desktop (#143) and Computer
Spec-Enterprise (#105) registering the steepest decline. Notable earnings this week include FL-rated CRWD (03/05) and MDB
(03/07), along with GTLB (03/04) and IOT (03/07). Overall, we remain cautiously constructive on the IGV and its constituents. Monitor
extended names and stocks breaching key support levels with declining relative strength.