Author: Cornelio Ash

Cornelio Ash is a senior equity analyst and member of the U.S. Focus List and the Global Focus List Committees, which approves all equity recommendations for developed, emerging, and frontier markets. He is also a lead for the Technology sector and specializes in the Americas region. Cornelio joined the firm in 2005 and received his B.A. in Finance from California State University, Northridge. He holds a Series 65 securities license.

Global Laggards

Posted on by Cornelio Ash

Highlighted Charts

 

U.S.: Albany International Corp ( AIN ), Amer Axle & Mfg Holdings ( AXL ), AB Inbev ( BUD ), Evercore ( EVR ), Invitae ( NVTA ), American Eagle Outfittrs ( AEO ), F5 Networks ( FFIV ), Commvault Systems ( CVLT ).

 

Developed: Imerys ( NK.FR; NK FP ), Cleanaway Waste Management ( CWY.AU; CWY AU ), Outsourcing ( OUTS.JP; 2427 JP ), Subaru ( FJ@N.JP; 7270 JP ), Japan Tobacco ( ABOT.JP; 2914 JP ), Fukuoka ( FUKU.JP; 8354 JP ), Sosei Group ( S@SE.JP; 4565 JP ), Morrison Supermarket ( MRW.GB; MRW LN ), SG Holdings ( SGHS.JP; 9143 JP ).

 

Emerging: Bharat Electronics ( BHE.IN; BHE IN ), Hyundai Motor ( HDR.KR; 005380 KS ), Polski Koncern Naftowy Orlen ( PLK.PL; PKN PW ), Banco De Chile ( CLE.CL; CHILE CI ), Cp All ( CPSE.TH; CPALL TB ), GUC ( GLO.TW; 3443 TT ).

Coupa Software

Posted on by Cornelio Ash

Key points:

 

  • The stock is breaking out on above  average volume from a large consolidation that extends back to July 2019.
  • Fundamental ratings: EPS Rank 74, SMR Rating C, Composite Rating 89.
  • Technical ratings: RS line has turned higher, RS Rating 96, A/D Rating C+.

Global Laggards

Posted on by Cornelio Ash

Highlighted Charts

 

U.S.: Graftech ( EAF ), Cinemark ( CNK ), Coca Cola European Partners ( CCEP ), Sunrun ( RUN ), Regency Centers ( REG), Cantel Medical ( CMD ), Etsy ( ETSY ), Interdigital ( IDCC ), 8X8 ( EGHT ).

 

Developed: Kaneka ( KG@N.JP; 4118 JP ), Subaru ( FJ@N.JP; 7270 JP ), Unilever ( UNI.NL; UNA NA ), Ipsen ( IPN.FR; IPN FP ), Dena ( DENA.JP; 2432 JP ).

 

Emerging: KT&G ( KTB.KR; 033780 KS ), Polski Koncern Naftowy Orlen ( PLK.PL; PKN PW ), Cp All ( CPSE.TH; CPALL TB ).

Global Laggards

Posted on by Cornelio Ash

Highlighted Charts

 

U.S.: Graftech International ( EAF ), Spirit Aerosystems ( SPR ), Live Nation Entertainment ( LYV ), Mack-Cali Realty ( CLI ), Livanova ( LIVN ), Interdigital ( IDCC ), Sprint Corp ( S ), MongoDB ( MDB ).

 

Developed: Ccl ( CCL/B.CA; CCL/B CN ), Dentsu ( DENN.JP; 4324 JP ), Britvic ( BVIC.GB; BVIC LN ), Hang Lung Properties ( AMOY.HK; 101 HK ), Swedish Orphan ( SOBI.SE; SOBI SS ), Metro Ag ( B4BX.DE; B4B GR ), Dena ( DENA.JP; 2432 JP ), SG Holdings ( SGHS.JP; 9143 JP ).

 

Emerging: Polski Koncern Naftowy Orlen (PLK.PL; PKN PW), Cp All (CPSE.TH; CPALL TB).

HealthEquity

Posted on by Cornelio Ash

Key points:

 

  • HQY has bottomed since the acquisition of WageWorks and recently regained its 200-DMA. Although significant levels of technical resistance (overhead supply) remain, we advise investors to remain patient and accumulate shares as the stock regains and holds above key levels of resistance (see chart).
  • HQY is a market share leader in accounts (#1) and AUM (#2) and is growing faster than the industry with 5M HSA (+37% y/y) and $10.5B AUM (+48% y/y).
  • Post acquisition of WageWorks, HQY’s TAM has expanded by $3B (HRA, COBRA, FSA) to $13B. The combined entity will cover two-thirds of the Fortune 100 and is poised to realize annualized synergies of ~$50M over the next 2–3 years.

Global Laggards

Posted on by Cornelio Ash

Highlighted Charts

U.S.: Textron ( TXT ), Nielsen ( NLSN ), Middleby Corp ( MIDD ), Roku ( ROKU ), Regency Centers ( REG ), Cantel Medical ( CMD ), Cheesecake Factory ( CAKE ), Shake Shack ( SHAK ), Telephone and Data Sys ( TDS ), Semtech ( SMTC ).

Developed: Incitec Pivot ( IPL.AU; IPL AU ), Cleanaway Waste Management ( CWY.AU; CWY AU ), Persol ( TMHD.JP; 2181 JP ), Telefonica ( TEF.ES; TEF SM ), Diageo ( DGE.GB; DGE LN ), Equinor ( EQNR.NO; EQNR NO ), 3i Group ( III.GB; III LN ), Recordati ( REC.IT; REC:IM ), Compass Group ( CPG.GB; CPG LN ), Ana Holdings ( ANAW.JP; 9202 JP ).

Emerging: Siam Cement ( SCQT.TH; SCC TB ), Sun TV Network ( NSV.IN; SUNTV IN ), Kt & G ( KTB.KR; 033780KS ), Ptt ( PTTB.TH; PTT TB ), Cp All ( CPSE.TH; CPALL TB ).

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

Shake Shack ( SHAK ) – Retail; $2B market cap – Operates 208 fast-casual restaurants offering burgers, hot dogs, fries and shake

Global Technology Sector-Software

Posted on by Cornelio Ash

Some highlights from this report:

 

  • The Software ETF ( IGV ) is back near all-time highs after consolidating for five months, however not all constituents are under accumulation. We believe it’s time to be selective across Software.
  • For Q3 FY19, IGV constituents reported better-than-feared results ( median revenue/EPS growth of 17% /13% y/y ), however earnings growth continues to decelerate year-over-year. Early glance at Q4 FY19 expectations remains weak.
  • Focus on stocks under accumulation and  that are bucking the earnings trough, including Fortinet ( FTNT ) and Splunk (

    ).

Global Laggards

Posted on by Cornelio Ash

Highlighted Charts

 

U.S.: Ball Corp ( BLL ), World Wrestling Entertainment ( WWE ), Coca-Cola European Partners ( CCEP ), UGI Corp Holdings ( UGI ), Empire State Rlt Tr ( ESRT ), Glaukos ( GKOS ), eBay ( EBAY ), Belden ( BDC ), Blackbaud ( BLKB ).

 

Developed: Incitec Pivot ( IPL.AU; IPL AU ), Informa ( INF.GB; INF: LN ), Ajinomoto ( AJ@N.JP ), Link REIT ( LREI.HK; 823 HK ), Peptidream ( PETI.JP; 4587:JP ), Tesco ( TSCO.GB; TSCO LN ), Morrison ( MRW.GB; MRW LN ), Capgemini ( CAP.FR; CAP FP ).

 

Emerging: Bidvest Group ( BVTJ.ZA ), S-Oil ( SSO.KR; 010950 KS ), Woolworths (WHLJ.ZA; WHL SJ ), Intouch Holdings ( SHNW.TH; INTUCH: TB ), Interglobe Aviation ( VGA.IN; INDIGO IN ).