Symbol: IRM

Global Laggards

Posted on by Heetae Kim

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

U.S.
Snap Inc. (

) – Technology ($16.5B market cap) – Snapchat, the Company’s flagship product, is a camera application that allows people to communicate through videos and images.

*   The stock is finding resistance near its 10-WMA and we believe the stock will trend lower to test the next support level near $11-12 (11-18% downside).
*   RS line is at all-time lows.
*   A/D Rating of D has worsened over the last three weeks.
*   The stock reversed gains for the week on Thursday after news that Twitter was working on a “Snapchat-style” video product. This follows other competitors like Facebook having already copied Snapchat’s features in Instagram.
*   Furthermore, reviews for Snapchat’s redesign (still awaiting full rollout) has been largely negative, scoring poorly on app store reviews, according to TechCrunch. Although still early, negative reviews could be concerning considering the importance of the redesign on potential revenue for the Company.
*   Their foray into hardware with Spectacles was disappointing and the Company had to write off $39.9M in Q3 2017.
*   The Company reported Q3 revenue of $207.9M, well below expectations of $235.5M.  User growth also failed to meet expectations in the quarter. It added 5M users compared to expectations for 8M.
*   The Company has yet to report positive earnings and expectations for 2018 are for another year of negative earnings growth.

Emerging
Catcher Technology ( CTH.TW ; 2474 :TT ) – Technology ( $8.5B market cap) – Manufactures metal cases for the communications, computer, and consumer electronics industries. Sales of metal casing for Apple ( AAPL ) products account for more than 50% of revenue. Competitors include Taiwan’s Foxconn ( FNN.TW ) and Casetek ( CSL.TW ).

Investment Strategy: Winners from Tax Overhaul

Posted on by Randy Watts

Key points:

  • We do not think the potential positive boost to earnings from the lower corporate tax rates from the tax overhaul are fully discounted in the U.S. equity markets.
  • Companies with businesses that are primarily domestic focused tend to have higher tax rates on average. Similarly, small cap stocks, which are generally more U.S. centric, could see strong earnings revisions if the Tax Bill passes.
  • Energy currently has the highest corporate tax rate and would see major relief. Technology, on the other hand, has the second lowest and would not have as large earnings revisions.
  • If the Tax Bill passes in its current form, Wall Street consensus is that S&P 500 earnings estimates may rise by as much as $10. That would take 2018 EPS from roughly $146 per share to $156 (+19% y/y).

Global Laggards

Posted on by Heetae Kim

Our Global Laggards list comprises stocks that have poor O’Neil Ratings and Rankings. This list has been curated by our sector analysts to find stocks showing technical
weakness. We believe these stocks are laggards relative to their own domestic markets. We recommend that they be underweighted as they may be vulnerable to further
downside risk and underperformance.

Global Laggards

Posted on by Heetae Kim

Our Global Laggards list comprises stocks that have poor O’Neil Ratings and Rankings. This list has been curated by our sector analysts to find stocks showing technical weakness. We believe these stocks are laggards relative to their own domestic markets. We recommend that they be underweighted as they may be vulnerable to further downside risk and underperformance.

Global Laggards

Posted on by Heetae Kim

Our Global Laggards list comprises stocks that have poor O’Neil Ratings and Rankings. This list has been curated by our sector analysts to find stocks showing technical weakness. We believe these stocks are laggards relative to their own domestic markets. We recommend that they be under weighted as they may be vulnerable to further downside risk and under performance.

Global Recovery, but Resistance Remains

Posted on by Kenley Scott

Twenty-three developed markets gained 2.1% on average this week after four consecutive weeks of losses. Eighteen advanced, including seven by at least 1% and six
(U.S., France, New Zealand, Norway, Italy and Switzerland) by at least 3%. The best
performing markets were the U.K. (7.1%), Spain (5.0%), Japan (4.9%) and Singapore
(4.1%). Finland (-1.5%) and Sweden (-2.7%) were closed last Friday, resulting in
oversized losses on Monday.