JP Morgan: What's working in Asian Telcos: Don't buy cheap telcos + May the trend be with you

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 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?