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India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Don’t buy cheap telcos: “But it’s cheap”…Our analysis continues to
show that absolute and relative valuation levels do NOT drive Asian
Telco share prices. Earnings revision continues to be the most
powerful driver behind the Telecom sector and the basic fundamental
thesis behind our research. It’s important to note that Asia as a region
continues to trade differently, primarily on yield and cash flows at the
moment.
Earnings revision - May the trend be with you: But why are earnings
revisions important? Not surprisingly, we have some thoughts on the
matter. Trends, once begun, tend to continue…hence the term
“trend”…out of the 38 stocks profiled in this report, only five have
seen a meaningful change in revision trend, implying that 86% of
them show trend continuance (within the 14% showing trend chance
are SKT and Globe towards the positive; TCOM, Digi, and EXCL
towards the negative). Stocks with consistently positive trends include
ADVANC and DTAC, Softbank and KDDI; those with consistently
negative trends include CHU, LGU+, RCOM, and ISAT.
How to use this analysis: We believe that factor analysis is as useful as
sanity check existing positions as it is to develop forward looking trades.
Did your position specific P&L occur due to the fundamental thesis
playing out, or due to factor driven returns separate from the stock
thesis? What is the best way to organize research; what variables, better
understood, can help make money in a portfolio?
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Don’t buy cheap telcos: “But it’s cheap”…Our analysis continues to
show that absolute and relative valuation levels do NOT drive Asian
Telco share prices. Earnings revision continues to be the most
powerful driver behind the Telecom sector and the basic fundamental
thesis behind our research. It’s important to note that Asia as a region
continues to trade differently, primarily on yield and cash flows at the
moment.
Earnings revision - May the trend be with you: But why are earnings
revisions important? Not surprisingly, we have some thoughts on the
matter. Trends, once begun, tend to continue…hence the term
“trend”…out of the 38 stocks profiled in this report, only five have
seen a meaningful change in revision trend, implying that 86% of
them show trend continuance (within the 14% showing trend chance
are SKT and Globe towards the positive; TCOM, Digi, and EXCL
towards the negative). Stocks with consistently positive trends include
ADVANC and DTAC, Softbank and KDDI; those with consistently
negative trends include CHU, LGU+, RCOM, and ISAT.
How to use this analysis: We believe that factor analysis is as useful as
sanity check existing positions as it is to develop forward looking trades.
Did your position specific P&L occur due to the fundamental thesis
playing out, or due to factor driven returns separate from the stock
thesis? What is the best way to organize research; what variables, better
understood, can help make money in a portfolio?
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