Emerging Markets Rebound As Normalcy Recovers

Emerging markets are in the process of economic healing despite the uneven impact of COVID-19. Lower rates and higher fiscal spend have created a significant rebound, but at what cost? We strive to isolate the truly exceptional, structural growth companies from the noise and market volatility of ongoing macro events. Additionally, it is worth pointing out that risk aversion has disproportionately affected small- and mid-cap stocks in emerging markets. As markets normalize, we believe it is reasonable to expect relative outperformance from these smaller stocks. As a “true” all capitalization strategy, these changes in sentiment can materially affect the relative performance of our portfolio.

As the third quarter unfolded, so did the ongoing rebound of emerging markets economies. Easing of virus restrictions, coupled with supportive emerging markets government policies, boosted growth across emerging markets. Indeed, emerging markets governments around the world continued offering fiscal stimuli, including discretionary easing and loan

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Heady Rebound on ‘TAP’ for Molson Coors

Molson Coors (TAP)  owns some of the world’s top brands of beer. Its shares commanded over $100 during both 2016 and 2017.

Since then, though, the stock tailed off to a recent low of $32.11. After a minor rebound TAP was still offered on Monday for the bargain price of $35.21.

Momentum traders can stop reading right here. Value investors should be taking notes. At its current quote, the stock sold for just 12.8-times its 2020 estimate and 10.1-times Value Line’s earnings per share projection for its 2021 results.

Those compare quite favorably with TAP’s post-2011 typical price-to-earnings of 18.2-times. Better still, EPS are now expected to grow nicely, well into the future. Value Line sees EPS rising to $4.65 not later than 2025.

Even a partial reversion-to-the-mean valuation suggests TAP could rebound to about $56 by Dec. 31, 2021. Hitting that relatively modest goal would deliver an almost 74%

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Maersk Raises Outlook as Shipping Giant Sees Demand Rebound

(Bloomberg) — A.P. Moller-Maersk A/S raised its full-year guidance amid a recovery in demand and sweeping efforts to cut costs.



a large ship in the background: Inside DP World Plc London Gateway Port


© Bloomberg
Inside DP World Plc London Gateway Port

The container shipping company, which is eliminating hundreds of jobs, said earnings before interest, taxes, depreciation and amortization will be in the range of $7.5 billion to $8 billion, before restructuring and integration costs. That compares with an earlier forecast of $6 billion to $7 billion, according to a statement.

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“The upgrade underlines the strong earnings momentum,” Brian Borsting, a credit analyst at Danske Bank A/S, said in a client note.

Copenhagen-based Maersk, which transports about 15% of the globe’s seaborne freight, said there was a “continued recovery in demand” in the third quarter. It reported revenue of $9.9 billion for the quarter, and an EBITDA before costs of $2.4 billion.

Maersk is undertaking a major restructuring as the

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Samsung earnings soar on smartphone sales rebound, US sanctions on Huawei

Samsung predicts its profit jumped nearly 60% last quarter, suggesting it could soon retake its position as the world’s top smartphone seller from embattled Chinese rival Huawei.



a person standing in front of a mirror: A man wearing a protective mask walks past an advertisement for the Samsung Electronics Co. Galaxy Z Fold2 5G and Z Flip 5G smartphones at the company's D'light flagship store in Seoul, South Korea, on Tuesday, Oct. 6, 2020. Photographer: SeongJoon Cho/Bloomberg via Getty Images


© Cho/Bloomberg via Getty Images
A man wearing a protective mask walks past an advertisement for the Samsung Electronics Co. Galaxy Z Fold2 5G and Z Flip 5G smartphones at the company’s D’light flagship store in Seoul, South Korea, on Tuesday, Oct. 6, 2020. Photographer: SeongJoon Cho/Bloomberg via Getty Images

The South Korean conglomerate said on Thursday that it expects to make an operating profit of roughly 12.3 trillion won ($10.6 billion) for the July-September quarter. That’s up 58% from the same period a year ago. The estimates also beat the 26% profit bump analysts polled by data provider Refinitiv had predicted.

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Samsung said it expects sales for the third quarter will rise about 6% to 66 trillion won ($57 billion).

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Data center spending to grow 6% in 2021 as enterprises rebound from cash flow restrictions

Data center infrastructure spending is expected to grow 6% globally next year as businesses rebound from cash flow restrictions brought on by the coronavirus pandemic, according to Gartner. 

The research firm released its latest data center infrastructure forecast Wednesday, projecting that end-user spending on global data center infrastructure products will reach $200 billion in 2021. 

Spending has declined more than 10% so far in 2020, as lockdowns from COVID-19 prevented around 60% of new facilities construction. Nonetheless, Gartner is optimistic about growth over the next few years. The firm still expects the data center market to grow year-over-year through 2024.

“The priority for most companies in 2020 is keeping the lights on, so data center growth is generally being pushed back until the market enters the recovery period,” said Naveen Mishra , senior research director at Gartner. “Gartner expects larger enterprise data centers sites to hit pause temporarily and then

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Asia M&A seen cementing rebound as techs, conglomerates step up restructuring

By Kane Wu

HONG KONG (Reuters) – Asia-Pacific mergers and acquisitions are forecast by bankers to remain buoyant after surging 63% in the third quarter, driven by technology companies and conglomerates making strategic moves as they emerge from the pandemic.

Japanese companies are at the forefront of the M&A boom, as shown by SoftBank Group’s <9984.T> $40 billion sale announcement of chip maker ARM to Nvidia <NVDA.O> and Nippon Telegraph and Telephone Corp’s (NTT) <9432.T> launch this week of a $40 billion buyout of its wireless carrier business.

Deals involving Asia companies totalled $432 billion in the July-September quarter, the highest for the period in at least the past decade, according to Refinitiv data. They totalled

$844 billion in the first nine months of the year, up 13% and compared to a 20% decrease globally for the period.

A strong outlook for M&A in Asia, with big markets such as

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Wall Street closes up on tech rally despite mixed signs on economic rebound

(Reuters) – Wall Street rallied in a rocky session on Thursday as beaten-down technology shares gained favor after data showing a surge in the sale of new homes revived faith in the economic recovery even as U.S. jobless claims rose unexpectedly.

FILE PHOTO: The Wall Street sign is pictured at the New York Stock exchange (NYSE) in the Manhattan borough of New York City, New York, U.S., March 9, 2020. REUTERS/Carlo Allegri/File Photo

Stocks also reacted positively to news of efforts to enact further stimulus in Washington, helping lift the S&P to a session high, although the index then turned negative before retracing some gains.

Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Nvidia Corp NVDA.O and Facebook Inc .FB.O, stocks that have outperformed at a time of increased economic uncertainty, all rose.

The wild session indicated caution was in store, said Dennis Dick, a trader at Bright Trading

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US STOCKS-Tech stocks lift Wall Street even as economic rebound slows

* Weekly jobless claims unexpectedly rise to 870,000

* U.S. new-home sales vault to near 14-year high

* Nikola slides after Wedbush downgrade

* Accenture drops, BlackBerry rises on quarterly earnings (Updates to close of U.S. market)

Sept 24 (Reuters) – Wall Street rallied in a rocky session on Thursday as beaten-down technology shares gained favor after data showing a surge in the sale of new homes revived faith in the economic recovery even as U.S. jobless claims rose unexpectedly.

Apple Inc, Amazon.com Inc, Nvidia Corp and Facebook Inc, stocks that have outperformed at a time of increased economic uncertainty, all rose.

“Investors are going to be needing stocks that can weather a lower growth path because if we don’t get another round of fiscal stimulus, there’s not going to be a lot more we can do to continue boosting the economic recovery,” said Max Gokhman, capital markets strategist at

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Dow erases early climb, S&P 500 notches third straight gain as tech stocks extend rebound from last week’s rout

U.S. stocks finished mostly higher on Tuesday as the blue-chip Dow shed early gains ahead of a policy update by the Federal Reserve. The Nasdaq led the broader market rally as technology shares continued to make up lost ground from last week’s selloff.

The Dow Jones Industrial Average
DJIA,
-0.87%

 rose 2.27 points to finish at 27,995.60, while the S&P 500
SPX,
-1.11%

 gained 17.66 points, or 0.5%, to trade at 3,401.20, marking its third straight increase. The Nasdaq Composite
COMP,
-1.07%

 finished up 133.67 points, or 1.2%, at 11,190.32, logging back-to-back gains.

On Monday, the Dow rose 327.69 points, or 1.2%, to finish at 27,993.33, after briefly trading above the 28,000 threshold. The S&P 500 added 42.57 points, or 1.3%, closing at 3,383.54. The Nasdaq Composite climbed 203.11 points, or 1.7%, to end at 11,056.65, rebounding from a rout that last week saw the tech-heavy index enter correction territory

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