KONM.JP – WILLIAM O'NEIL+CO

Global Laggards

Posted on June 30, 2022July 1, 2022 by Cornelio Ash

Attached is the latest Global Laggards report from our analysts.

This report 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.

Highlighted Charts

U.S.: Trinseo (TSE), Installed Building Products (IBP), Omnicom Group (OMC), Tesla (TSLA), Borgwarner Inc (BWA), Owens Corning (OC), Snap On Inc (SNA), Tapestry Inc.(TPR), Skyline Champion Corporation(SKY), Deckers Outdoor Corp. (DECK), Anheuser Busch(BUD), Archaea Energy Cl A (LFG), Raymond James Financial (RJF), Western Alliance Bancorp (WAL), Fidelity Natl Info Svcs (FIS), Glaukos Corporation (GKOS), Perkinelmer (PKI); Inspire Medical System (INSP), Chipotle Mexican Grill (CMG), Lithia Motors (LAD), Applied Industrial tech (AIT), United Natural Foods (UNFI), Infinera Corp (INFN), Advanced Energy (AEIS), Concentrix Corporation (CNXC), Cyberark Software (CYBR), Alphabet (GOOGL), Arcbest Corp (ARCB).

Developed: Wacker Chemie (WCHX.DE; WCH GR), Mitsubishi Materials (LM@N.JP; 5711 JP), Vivendi (EX@F.FR; VIV FP), Aena Sme (AENA.ES; AENA SM), Accor (AC.FR; AC FP), Panasonic(MI@N.JP; 6752 JP), Diageo(DE.GB; DGE LN), Royal Bank of Canada (RY.CA; RY CN), Essilorluxottica (EI.FR; EL FP), Konica Minolta (KONM.JP; 2354 TT), Qantas Airways (QAN.AU; QAN AU).

Emerging: Petronas Chemicals Group (PCHE.MY, PCHEM MK), Bts Group Holdings(TANA.TH; BTS TB), Dabur India (DAB.IN; DABUR IN), Sk (C&C.KR; 034730 KS), Foxconn Technology (FNN.TW; 4902 JP), Korean Airlines (KAA.KR; 003490 KS).

Global Laggards

Posted on January 10, 2019February 1, 2019 by Heetae Kim

Highlighted Charts

U.S.: Servicemaster ( SERV ), Liberty Media ( LSXMA ), Booking ( BKNG ), Marathon Oil ( MRO ), CyrusOne ( CONE ), Trustmark ( TRMK ), Realogy ( RLGY ), Insulet ( PODD ), Autonation ( AN ), Jabil ( JBL ), Unifirst ( UNF ), Saia Inc ( SAIA )

Developed: Akzo Nobel ( AKZA.NL; AKZA NA ), Nippon Telegraph and Telephone ( NTT.JP; 9432:JP ), Aeroports de Paris FA ( ADP.FR; ADP FP ), Lundin Petroleum ( LUPE.SE; LUPE SS ), Merlin Properties ( MRLN.ES; MRLM SM ), Diasorin ( DIA.IT; DIA IM ), Domino’s Pizza ( DMP.AU; DMP:AU ), Fujifilm Holdings ( FP@N.JP; 4901 JP ), Amadeus ( AMS.ES; AMS SM )

Emerging: Berli Jucker ( BJCT.TH; BJC TB ), Shinhan Financial ( SHB.KR; 055550 KS )

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

U.S.

Realogy ( RLGY ) – Financial; $2B market cap— is the largest owner and operator of residential real estate brokerages in the U.S. The company franchises its brands to residential and commercial real estate brokerages in the U.S. and internationally, with more than 16,000 affiliated offices (~5% company owned) across 116 countries and territories.

Two key fundamental drivers underpin our negative view on the name:

Slowing housing sales. The company missed Q3 estimates and lowered guidance after transaction volume growth came in at only +1% y/y (versus 3-6% guidance).
Rising commission rates paid to agents. The hiring environment for real estate agents is becoming increasingly competitive, causing brokerages to receive a lower fee split from agents. Websites like Zillow and Trulia and social media platforms like Facebook and Instagram have given agents a greater ability to promote their own brands and attract clients; this dynamic has reduced the appeal to agents of working with large brokerages, which take a larger fee cut from agents than smaller/independent brokerages.

The stock continues to be in a long downtrend, having closed above its 50-DMA only a handful of times over the past eight months. Technical/quantitative ratings are poor, with an RS Rating of 17, an A/D Rating of D, and a Composite Rating of 20. While the stock trades at only 10x 2019 EPS, we believe the its profitability will continue to deteriorate due to secular headwinds.

Global Laggards

Posted on November 29, 2018February 1, 2019 by Heetae Kim

Highlighted Charts

U.S.: Lyondellbasell Ind A Nv ( LYB ), Barnes Group ( B ), Criteo SA ( CRTO ), Colgate Palmolive Co ( CL ), Plains GP Hldgs Cl A ( PAGP ), Corporate Office Pptys ( OFC ), Bio Rad Labs Inc. ( BIO ), Autonation ( AN ), Shutterstock Inc. ( SSTK ), Kulicke and Soffa Ind ( KLIC ), Manhattan Associates ( MANH ), Saia Inc ( SAIA ).

Developed: Rio Tinto ( RIO.GB; RIO LN ), Singapore Telecom ( TELC.SG; ST SP ), Nissin Foods Holdings ( NIFP.JP; 2897 JP ), Subsea 7 ( SUBC.NO; SUBC NO ), Partners Group Holdings ( PGHB.CH; PGHN SW ), Recordati Industria Chimica ( REC.IT; REC IM ), Izumi ( IZUM.JP; 8273 JP ), Hitachi Metals ( HM@N.JP; 5486 JP ), Fujitsu ( FT@N.JP; 6702 JP ).

Emerging: Klabin Units ( KLU.BR; KLBN11 BZ ), Mondi ( MNDJ.ZA; MND SJ ), Minor International ( RGRT.TH; MINT TB ), Pegatron ( PEG.TW; 4938 TT ).

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

U.S.

Shutterstock ( SSTK ) – Retail Internet, $1.36B Market Cap – operates an online marketplace for licensed commercial digital imagery for sale to media and marketing agencies. The company serves more than 1.8 million active paying users in 150 countries.

The company’s Enterprise business (40% of revenues) faces an increasingly competitive environment, with y/y sales growth for this segment decelerating from 35% in Q2 to 14% in Q3. This trend is particularly concerning as Enterprise has been the key growth driver for SSTK, while the company’s e-commerce business has only been growing in the single digits.

The stock breached its 200-DMA, previous a level of support, in mid-October before gapping down substantially on October 30 after reporting below-consensus Q3 results and reducing the high end of its guidance range for FY 2018 sales and EPS.

SSTK has missed consensus EBITDA estimates in 7 of the past 8 quarters.

The stock’s RS rating has dropped from 88 to 21 over the past month, while its weak A/D Rating (D+) indicates ongoing distribution.

SSTK trades at 25x next year’s earnings, while estimated 2019 EPS only represents 5% y/y growth.

APAC Weekly Summary

Posted on October 10, 2018February 1, 2019 by Derek Higa

Over the last three days we downgraded Hong Kong to a Downtrend as a second follow-through day failed. We also downgraded Australia and Taiwan to a Downtrend. With U.S. markets clearly displaying pressure (also downgraded to a Downtrend today), we have gotten more bearish on global market conditions overall. In APAC, major markets have declined quite orderly, unable to rally much above key moving averages (50- or 200-DMA) before breaking down further again. This seemingly systematic selling leaves markets at risk to capitulation. If this should occur, we expect selling to pick up sharply on heightened investor fears. Furthermore, along with market declines, the number of APAC Focus List removals has increased significantly since September. We reiterate caution and advise raising cash if possible or implementing a defensive approach.

Despite poor market conditions and increased caution, our team ran a PANARAY screen for ideas with improving relative strength, especially for investors who must put capital to work. We cut this list down to 34 ideas, provided below. Lastly, we highlighted small-cap idea, Bangkok Chain Hospital (BCHP.TH; BCH:TB).

Global Laggards

Posted on June 29, 2017February 1, 2019 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.