Global Laggards

Posted on February 14, 2019March 27, 2019 by Heetae Kim

Highlighted Charts

U.S.: Bunge ( BG ), Dish Network ( DISH ), Hsbro ( HAS ), Delek US Holdings Inc ( DK ), Markel ( MKL ), Healthcare Svcs ( HCSG ), Central Garden Pet ( CENTA ), Penske Automotive Group ( PAG ), Netgear ( NTGR ), Amdocs ( DOX ).

Developed: Henkel ( HEN3X.DE; HEN3 GR ), Mitsubishi Chemical ( MCHC.JP; 4188 JP ), NGK Insulators ( KI@N.JP; 5333 JP ), Calbee ( CALB.JP; 2229 JP ), Subsea 7 ( SUBC.NO; SUBC NO ), Hargreaves Lansdown ( HL.GB; HL/LN ), Daiichi Sankyo ( D@SA.JP; 4568 JP ), Ain Holdings ( DCL.JP; 9627:JP ), Isetan Mitsukoshi Holdings ( ZW@N.JP; 3099:JP ), Hitachi Metals (HM@N.JP; 5486 JP), Nomura Research (NMRS.JP; 4307 JP), Nippon Yusen KK (NY@N.JP; 9101 JP).

Emerging: Sociedad Quimica y Minera De Chile ( SQB.CL; SQM/B CI ), Maruti Suzuki India ( MUD.IN; MSIL IN ).

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

U.S.

Markel Corp ( MKL ) – Insurance-Property/Casualty/Title; $14B market cap – is a financial holding company offering insurance products primarily focused on specialty insurance.

O’Neil Methodology

The stock is facing strong resistance along its declining 50-DMA.
Poor fundamental ratings: EPS Rank of 26, Composite Rating of 20, SMR Rating of D.
Technical ratings: RS Rating of 27 (near all-time low), A/D Rating of D-.
Pretax margin and ROE have deteriorated over the last four years, and currently stand at 0% and -1%, respectively.
The Insurance-Property/Casualty/Title industry group has sharply declined in rank over the last few weeks. The group is now ranked 97, down from 26 eight weeks ago.

Worsening Combined Ratio During the Last Two Years

The combined ratio of the Company has significantly deteriorated over the last few years. In 2018, it managed to improve, but it remains higher than the industry median of 92%.

European Weekly Summary

Posted on February 4, 2019February 5, 2019 by Tristan d'Aboville

Key Points

The iShares DJ Stoxx 600 is in a Confirmed Uptrend since January 4 (follow-through day), with only one distribution day. The index is currently testing its 100-DMA and any break through this resistance would be another positive signal this short-term momentum will persist.
In this report, we detail our cautiously optimistic view on European markets and recommend gradually increasing exposure to the region as the market trades constructively above key supports. Our bottom-up approach leans toward defensive sectors Staples and Health Care, and indicates it is too early to jump aggressively on Cyclicals (Autos and Luxury stocks). The top picks from our Focus List include Davide Campari ( CPR.IT ), Diageo ( DGE.GB ). Carl Zeiss Meditec ( AFXX.DE ), and Vitrolife ( VITR.SE ).
In addition to our Focus List, we also list Stocks of Interest, which have solid O’Neil Ratings and Rankings and are trading near pivot. The list includes former European Focus List names, Redrow ( RDW.GB ), Wolters Kluver ( WSG.NL ), and Halma ( HLMA.GB ).
Lastly, we updated our list of shorts ideas after we removed Essity ( ESSI.BE ) and now look at new potential short candidates (pages six and seven).

European Weekly Summary

Posted on January 18, 2019February 5, 2019 by Tristan d'Aboville

Key points:

The Stoxx 600 is in a Confirmed Uptrend and we recommend gradually allocating more money
toward the region as stocks break out of consolidation.
From our Focus List:
 Actionable ideas include Vitrolife ( VITR.SE ), Carl Zeiss Meditec ( AFXX.DE ), and Davide
Campari ( CPR.IT ).
 Ideas forming the right side of a base: Givaudan ( GIVN.CH ) and Mowi ( MHG.NO ).
Outside of our Focus List, stocks of interest include: Edenred ( EDEN.FR ) and Ei Group ( EIG.GB ).