What Worked Japan - 27 Jan 2017 - With the Start of Earnings, Value and Growth factors flat

What Worked – With the start of 3Q Earnings Season this week it was all about price momentum. Names up over the last month continued to go up. Hitachi Chemical (4217) was up 8%, Fujikura (5803) was up 7% and Showa Denko (4004) was up 7% this week. None of the Value or Growth factors stood out this week, which is not uncommon for Earning Season.

There was actually a slight move away from names with a high percent of retail investors and a move into names with a high percent of foreign investors. Name that benefited from the move were SMC Corp (6273) up 13%, DMG Mori (6141) up 8% and Alps Electric (6770) up 8%.

Who Moved – Only 12 names moved on volume this week. On the positive side, Fujikura (5803) was up 7%, Nippon Light Metal (5703) was up 7% and Tokuyama (4043) was up 6%. On the other side, Shochiku (9601) was down 5%, Sekisui House (1928) was down 3% and Otsuka Holdings (4578) was down 3%.

Summary

PDF Report available here: Download


What Worked Japan - 22 Dec 2016 - Value and Beta were hurt again this week as Quality names benefited

What Worked – Value, particularly PBR, did not do well for the second week in a row. Low PBR names that were hurt were Tokyo Electric Power (9501) down 7%, Kobe Steel (5406) down 6% and Isetan Mitsukoshi Holdings (3099) down 6%. On the positive side, last week’s rotation into growth and quality names continued this week.

Low Debt to Equity names that did well were KONAMI (9766) up 9%, Capcom (9697) up 7% and NEXON (3659) up 6%. Growth names that did well were Kakaku.com (2371) up 4% and Shionogi (4507) up 4%. As with Value, high Beta names did not do well for the second week in a row. Nintendo (7974) was down 11%, Olympus (7733) was down 10% and TADANO (6395) was down 6%. There was also a slight selloff in names with a high percent in Institutional Investors.

Who Moved – 51 names moved on volume this week.  The moves were spread pretty much evenly across the different sectors. On the positive side, Dentsu was up 14%, Taiyo Yuden was up 14% and Kagome (2811) was up 11%, all on strong volume. On the other side, SMC (6273) was down 10%, ACOM (8572) was down 9% and Komatsu (6301) was down 5%.

Summary

PDF Report available here: Download


What Worked Asia - 16 Dec 2016 - Size and Beta were hurt across the region

What Worked – China saw a good sell off in Size and high Beta names and a slight move into Quality. China Modern Dairy and China Vanke are both down 10% this week. In Hong Kong there was also a slight selloff in high Beta names. China Innovative Finance is down 14% and Geely Automobile Holdings is down 12%. India also saw a slight selloff in Size and Beta names. Edelweiss Financial Services is down 12% and Indiabulls Housing Finance is down 9%.

As with Japan, South Korea had a good selloff in Value and Large-cap names. Low PBR names that were hurt this week in South Korea were POSCO down 5% and Young Poong Corp down 4%. In Taiwan, low PBR names did well and large-cap names were hurt. Waisin Lihwa Corp was down 4% and Evergreen Marine was down 3%. Value did very well this week in Indonesia, particularly low PE names. Bank Tabungan Pensiunan Nasional is up 6% and Indo Tambangraya Megah is up 6%.

Who Moved 128 names moved on volume this week. A good number of the names were in Taiwan, Hong Kong and China. At the sector level, volume dominated in the Financial Sector. On the positive side, CIMB Thai Bank was up 64%, Great New Wave Coming was up 44% and Da Ming International Holdings was up 26%. All on strong volume. On the other side, Golden Energy & Resources was down 36%, Kong Sun Holdings was down 21% and Sheng Siong Group was down 8%.

Summary

PDF Report available here: Download

 


What Worked Japan - 16 Dec 2016 - Beta and Value took a hit after almost 3 months of strong performance

What Worked – As you know all good things come to an end and after a strong 3-month run, Value stopped working this week. Value, particularly low PBR names did not do well this week. The last time PBR did not work was in the last week of September. Low PBR names that underperformed were Sumitomo Metal Mining (5713) down 6% and Nippon Yusen Kabushiki Kaisha (9101) down 4%. However, high Beta names did a lot worse than Value this week.

High Beta names have not done this poorly since the beginning of September.  High Beta names that underperformed were Nintendo (7974) down 10%, Aiful (8515) down 6% and IHI Corp (7013) down 6%. Names up over the last month were also hurt this week. 1-month momentum names that were down were Itochu Corp (8001) down 4% and DIC (4631) down 4%. Quality was the only factor to stand out this week. High ROIC name did the best. Dentsu (4324) was up 14% and Taiyo Yuden (6976) was up also up 14%.

Who Moved – 51 names moved on volume this week.  The moves were spread pretty much evenly across the different sectors. On the positive side, Dentsu was up 14%, Taiyo Yuden was up 14% and Kagome (2811) was up 11%, all on strong volume. On the other side, SMC (6273) was down 10%, ACOM (8572) was down 9% and Komatsu (6301) was down 5%.

Summary

PDF Report available here: Download


What Worked Asia - 02 Dec 2016 - Slight Selloff in momentum names in HK / China

What Worked –Names up over the last year in Hong Kong and China were down this week. In China, Sunny Optical Technology was down 8% and Yanzhou Coal Mining was down 8%. In Hong Kong, Crown International was down 11% and China High Speed Transmission Equipment Group was down 12%. In Taiwan low PBR names and to a lesser degree low PE names did well with week. Low PBR names that outperformed were China Petrochemical Development up 9% and China Motor up 7%.

In Singapore there was a slight move into Size and high Beta names. Large-cap names that did well were Keppel Corp up 10% and Fortune Real Estate up 6%. In India, names down over the last month are up this week. JM Financial is up 10% and Eicher Motors is up 14%. In Malaysia names with positive EPS momentum did well this week and in the Philippines low PBR names and high Sales Growth names did well this week. In South Korea there was a slight move into value and positive revision names.

Who Moved – 212 names moved on volume this week. A good portion of the volume spikes came in the Finance Sector. At the country level, more than half of the spikes came in Hong Kong, China and Taiwan. On the positive side, Huarong International Financial Holdings is up 42%, Balkrishna Industries is up 35% and Adani Power Limited is up 20%. On the other side, Glorious Property Holding is down 33%, CT Environmental Group is down 23% and China Innovative Finance is down 23%.

Summary

PDF Report available here: Download

 


What Worked Japan - 02 Dec 2016 - Value and High Beta names continue to do well since the beginning of October

What Worked  Value names did really well this week and have actually done well since the end of September. This week low PBR names dominated with an almost 50% IC.  A good portion of the low PBR names that did well were in the Bank Sector. Low PBR names that did well were Nomura Holdings (8604) up 12%, Iyo (8385) up 10% and Idemitsu Kosan (5019) up 9%.

Low PE names also did well this week. Low PE names that moved were TADANO (6395) up 10%, Resona Holdings (8308) up 10% and Concordia Financial Group (7186) up 9%. Quality names however continue to underperform. High ROIC names have not done well since the beginning of October. High ROIC names that were down were MonotaRo (3064) down 9%, M3 (2413) down 9% and Hitachi High-Technology (8036) down 8%. As with Value, high Beta names did well this week and have done well since the beginning of October. Panasonic (6752) is up 9% and Mitsubishi UFJ Financial (8306) is up 10%.

Who Moved – 67 names moved on volume this week. A pretty good number for Japan. Only 14 of those names were down this week. On the positive side, Sumitomo Bakelite (4203) was up 11%, Iyo Bank (8385) was up 10% and Sumitomo Mitsui Construction (1821) was up 8%. On the other side, Santen Pharmaceutical (4536) was down 9%, Terumo Corp (4543) was down 4% and Misumi Group (9962) was down 5%.

Summary

PDF Report available here: Download


What Worked Asia - 18 Nov 2016 - Each Market kind of moved in its own direction this week

What Worked – In China names up over the last month went down this week. Jiangxi Copper Company is down 9% and Yangtze Optical Fibre and Cable is down 10%. Nothing really stood out in Hong Kong. In South Korea, Value, particularly PBR, did well this week. Low PBR names that were up were Mirae Asset Life Insurance up 15% and Hanjin Kal up 15%.

In India, high dividend yield names did well however there was a good selloff in high Beta names.  High Beta names that were hurt in India were Godfrey Phillips down 21% and JM Financial Limited down 18%. In the Philippines there was a move into large-cap names this week. DMCI Holding was up 11% and Semirara Mining & Power was up 8%. In Singapore, large-cap names and name with positive EPS revisions did well this week. SATS is up 4% and Genting Singapore is up 6%. In Indonesia there was a huge sell off in high Beta names.

Who Moved – 284 names moved on volume this week. A good portion of the volume spikes came in Taiwan, South Korea and Singapore. At the sector level, Finance and Producer Manufacturing sectors picked up a good number of the volume spikes. On the positive side, HengTen Networks Group is up 31%, China International Marine is up 24% and GlobalWafers Co is up 22%. On the other side, Daewoo Engineering & Construction is down 21%, PT Indo Tambangraya Megah is down 18% and PC Jeweller is down 17%.

Summary

PDF Report available here: Download

 


What Worked Japan - 18 Nov 2016 - Value and high Beta names continued to do well this week

What Worked – Value and Beta continued to dominate this week. Low PE and PBR names continued to do well as Growth names continued to do poorly. The last time low PBR names really did not do well was in the end of September. High Growth names have only done well once since the beginning of October. Low PBR names that did well this week were Hokuhoku Financial (8377) up 15%, Unipres Corp (5949) up 12% and Taiyo Yuden (6976) up 13%.

High Beta names that outperformed this week were DMG MORI (6141) up 24%, Mazda Motors (7261) up 16% and Fuji Heavy Industries (7270) up 14%. Looking at momentum, names down over the last 12 months did well this week. NGK Insulators (5333) is up 12%, Unipres Corp is up 12% and Citizen Watch (7762) is up 12%. High Growth names that did not do well were Penta-Ocean Construction down 9%, Dentsu (4324) down 4% and Nippon Shinyaku (4516) down 3%.

Who Moved – Huge number of names moved on volume this week. 127 names out of 500 moved on volume and of those 106 names moved up on volume. On the positive side, DMG Mori (6141) is up 24%, Mazda Motors (7261) is up 16% and Hokuhoku Financial (8377) is up 15% on strong volume. On the other side, Rohto Pharmaceutical (4527) is down 13%, Penta-Ocean Construction (1893) is down 9% and Toyo Tire & Rubber is down 8%.

Summary

PDF Report available here: Download


What Worked Australia - 18 Nov 2016 - High Dividend Yield and Large Cap names did well this week

What Worked – This week was all about high Dividend yield and Large cap names. High dividend yield names that did well this week were BT Investment Management up 11%, Asaleo Care up 8% and James Hardie Industries up 6%.

Growth names and names up over the last 12 months did not do well this week. Names up over the last year that went down this week were Saracen Mineral Holdings down 12%, Resolute Mining down 12% and Whitehaven Coal down 11%. Growth names that were also hurt were Aconex down 21%, Evolution Mining down 11% and Nextdc Limited down 9%.

Who Moved – 31 names moved on volume this week. On the positive side, BT Investment Management is up 11%, Transurban Group is up 5% and Iron Mountain Inc is up 4% on strong volume. Names mentioned above also moved on volume. On the other side, iSentia Group is down 29%, Aconex is down 21% and Whitehaven Coal Limited is down 11%. All down on strong volume.

Summary

PDF Report available here: Download


What Worked Asia - 11 Nov 2016 - Overall low PBR names did well and high ROE names were hurt this week

What Worked – In China there was a slight move away from Value and into high Beta and Momentum names. Jiangxi Copper Company was up 35% and Zoomlion Heavy Industry was up 18%. High Dividend names (particularly in the Finance Sector) were hurt this week as Hong Kong also saw a move into higher Beta names. Kerry Properties was down 11% and Cheung Kong Properties was down 10%. Beta and Value names did well in Singapore this week. Noble Group was up 15% and Yangzjiang Shipbuilding was up 8%.

Value also did well and Quality was hurt in India this week.  Indian Bank was up 23% and Vijaya Bank was up 24%. A lot of the low PE names in India that did well were concentrated in the Finance Sector. In Thailand there was a good selloff in Quality and High Dividend yield names and a slight move into large cap names. True Corp was up 9% and Energy Absolute Public was up 4%. In the Philippines, there was a good selloff in large cap and high Beta names. Globe Telecom was down 14% and GT Capital was down 9%.

Who Moved – 213 names moved on volume this week. Approx. 25% of the spikes came in the Finance Sector. On the positive side, Evergrande Health was up 37%, U City Public was up 33% and Jiangxi Copper Company was up 35%. On the other side, Coolpad Group was down 24%, Tung Thih Electronics was down 16% and Youngone was down 17%.

Summary

PDF Report available here: Download