ighlighted Charts
U.S.: Wabco
oldings (
),
yatt
otels (
), Penske Automotive (
), Lithia Motors (
), Cypress Semiconductor (
), United Parcel Service (
)
Developed: Solvay SA (SOL.BE; SOLB BB), Sandvik (SAND.SE; SAND SS), Cyberagent (
BA.JP; 4751:JP), Greencore Group (GNC.GB; GNC LN), Finecobank Spa (FCBK.IT; FBK:IM), Canadian Tire (CTC/A.CA; CTC CN), Morrison(
)spmkts. (MRW.GB; MRW LN), Fujifilm
oldings (FP@N.JP; 4901 JP)
Emerging: Nan Ya Plastics (NYP.TW; 1303 TT), Cathay Financial
oldings (CFC.TW; 2882:TT)
Stocks worth focusing on in this week’s Global Laggards:
U.S.
yatt
otels (
) — Consumer Cyclical; $7.5B market cap — manages owned and franchised
yatt Branded properties across the world.
Revenues have been declining for the last three quarters and are expected to continue to do so in the upcoming quarter.
Institutional fund ownership has been steadily declining the past year.
The Company operates in the upscale segment. Amidst slowing occupancy growth, in line with our call in August, the Company is far more exposed to a downturn than its peers. Also, its business model is overly dependent on owned and leased properties, with more than 70% of revenues coming from the such properties, giving
yatt little flexibility.
The Company has one of the lowest adjusted EBITDA margins in the industry, which adds to its lack of resilience in a downturn.
The stock’s A/D and RS Ratings have been steadily declining and are currently at E and 38, respectively, indicating increased selling pressure.
