The smart phone revolution has swept the world, but the telecommunication sector has underperformed this year. Analysts at CVS Group believe that it is poised to break out and recommend clients take long term positions in AT&T, Comcast, and T-Mobile.
Ten years ago everyone had a cell phone, but no one knew what a smart phone was. In that time smart phones have become so common that even children have them. The wireless industry has been working at an incredibly fast pace to keep up with consumer demand for bandwidth and other services. While many investors are concerned about hyper competition among wireless providers, analysts at CVS Group believe that some of the major players are seriously undervalued and their clients have the opportunity to take positions in these firms at a substantial discount, which will result in strong earnings in the future.
AT&T is currently trading at $34 a share and the analysts have set a target share price of $42. They also cited AT&T's very strong dividend of 5.3%. AT&T will be offering its customers fiber optic internet in order to compete with Google Fiber. Their new service, which will be launched in December, will give customers download speeds up to 300 Mbps.
Comcast Corp. is currently trading at $45.61 and the analysts have set a target share price of $54. The stock pays a dividend of 1.7%. The analysts believe that Comcast has and will dominate the cable providing business, but also plans to offer Wi-Fi everywhere for smart phones. This puts them in a position to challenge the likes of Verizon and AT&T.
T-Mobile is currently trading at $26 a share and is sitting just below its 52 week high of $26.72. The analysts have set a target share price of $33. The analysts believe that T-Mobile should be able to increase its service margins, which will provide a boost to the price.
Mr. Sato Tanaka, Head Of European Equity Research at CVS Group in Tokyo said “Our analysts believe the telecoms sector is a haven for undervalued equities at this time, and our traders have been given a plethora of undervalued telecoms stocks to speculate on”.
PRFree.Org (Press Release) Oct 13, 2013 -- The surprising decision from the US Federal Open Market Committee on September 18th to leave their stimulus package unchanged has provided a substantial boost to emerging markets, which were hit hard by fears that the American central bank reduces its asset purchasing program. Postponing tapering provided unexpected relief to emerging markets, as the program has caused huge inflows of cheap cash into developing countries. CVS Group's analysts believe that this has created opportunities for their clients who are looking for short to medium term investments in some important emerging markets. As the US economy recovers, the analysts prefer countries whose economies are export driven rather than fast growing domestic economies.
One of the world's biggest exporters, China is CVS Group's analyst’s top pick. The analysts believe that the recent slowdown in their economy is coming to an end but we should not expect the double digit GDP growth figures that we have seen over the last two decades. As the American and European economies improve, it will boost the export driven economy, where domestic economic data is beginning to show an upswing. Chinese authorities have already stated that they would interfere with stimulus if GDP growth fell below the 7.5% target; CVS Group analysts believe that this greatly reduces risk of investment for their clients. The Shanghai Stock Index has risen over 13% this year.
Turkey's economy was hit hard by the selloff in emerging markets, but as tapering fears reside, the analysts believe that it is becoming an attractive investment again. The US and Russia have reached an agreement and the US will not bomb Turkey's neighbor Syria, which is easing fears of instability in the region. The analysts also noted that Turkey's inflation rate has finally begun dropping, from 8.9% in July to 8.2% in August. The analysts believe that Turkey will have a GDP growth of 4.5% for 2013.
Equity Researcher CVS Group in Tokyo, announce the creation of a commodities advisory department for private investors.
freePRnow.com, 10/10/2013 - As a boutique equity research house, CVS Group has since its formation in 2005 focussed its efforts on the analysis of small cap stocks for private and corporate investors; however, as of late 2014 the Company will cater to private commodities traders also. CEO Mr Hiroto Shizuka said “this is something we will not be offering to our corporate clients, and primarily the rationale behind the departments’ creation is to ensure CVS Group offers a fully rounded and comprehensive advisory service to its private clients.
At the present time CVS Groups private client advisory offers small cap selection, review and entry and exit strategies, and is moving into the blue chip arena also, but has yet to offer currency or commodities trading advice. Mr Hideki Yamamoto, Executive Director at CVS Group Tokyo said “this is just one of many innovations we have in the pipeline, CVS Group is in the process of aggressively expanding and by 2015 I hope we will be providing equity, commodities and currency trading advice, but of course this must be implemented gradually”.
“In the few days following CVS Group’s Aggressive Emerging Small-Cap fund creation announcement there has been a great deal of positive feedback from our client base, and I’m confident that we will receive the same response from those clients with regards to commodities also” said Mr Hideki Yamamoto, Executive Director.
The department’s official opening date is scheduled for August 31st 2014, but according to CEO Mr Hiroto Shizuka, may be brought forward to as early as April depending on client interest.
Mr Hiroto Shizuka
Mr Hideki Yamamoto, Executive Director at CVS Group Tokyo
the AESC Fund is scheduled to launch in February of 2014
Tokyo based equity research company CVS Group have today announced the creation of managed small-cap fund, to be focused with the emerging markets.
PRFree.Org (Press Release) Oct 7, 2013-The fund itself is to be tailored for HNWI’s worldwide that are prepared to undertake risky investments; however by the same token the potential capital returns are substantial. According to Mr Hideki Yamamoto, Executive Director at CVS Group Tokyo, the risk ratio will be comparable with that of the Venture Capitalist Trusts of days gone by where returns of up to 3000% were feasible although at a high risk. This will no doubt mean the vast majority of investors will consider the fund too high risk.
CEO at CVS Group, Tokyo, Mr Hiroto Shizuka said “investments in start-ups will always carry a monumental risk label, but we will be managing that risk for our clients via prudent stock selection, continual research, and risk spreading, so I fully expect to see vast capital growth on this product and huge financial rewards for those investors who can stomach the inevitable volatility”.
The CVS Group AESC (Aggressive Emerging Small-Cap) Fund will include stocks from each of the BRIIC markets, without restriction to market sectors. Mr Hiroto Shizuka went on to comment “our investors seek quality companies, that are poised for greatness, but are financially constrained, and this is precisely what our team will deliver in the new year once the fund is open to public investment”.
At the present time the AESC Fund is scheduled to launch in February of 2014, pending client feedback and confirmation from the board of directors at CVS Group in Tokyo. Mr Hiroto Shizuka however has stated that the launch maybe as later as June/July 2014 if the required criterion is not met in the first quarter of the year.
Stock market research provider CVS Group, Tokyo, has today announced record profits in Q2 of 2013, attributing gains to its client portfolio expansion, and small cap performance.
With Global markets soaring at levels comparable to those seen prior to the subprime crisis of 2008, many high street brokerages have aired on the side of caution in the second quarter of 2013, minimising risk exposure. However small-cap traders and analysts advised by CVS Group have today reported increased profits during the period.
In stark contrast to many brokerages, Tokyo based analyst CVS Group has today issued a statement detailing a greater than ever revenue generated in the second quarter of the year, created primarily by strong growth on small and mid-cap stocks, and emerging market investments.
In a year on year comparison based on the same quarter in 2012, the Company has increased its overall revenue by 42%, attributing the bulk of those gains to strong performance in its own investments, coupled with a larger workforce and client base.
Chief Executive Officer at CVS Group Mr Hiroto Shizuka said “As I have only this week announced my planned retirement in 2015, I am thrilled to be able to report to our clients that we are performing better than ever in the markets, and as we are continually growing and expanding our presence both here in Asia, and in Europe, I’m hoping we will see an even greater revenue next quarter”.
Mr Sato Tanaka, Head of European Equity Research at CVS Group said “our revenue stream is generated from fees charged for services provided, but it’s important to consider that our advisory services generate a performance based income; when we advise our clients successfully, it’s mutually beneficial. Of course we don’t lose money if our advice is unsuccessful, but we don’t make a profit either, and it is this business model that is fuelling our growth”.
In a surprise announcement made this morning at CVS Group’s headquarters in Tokyo, company founder and CEO Hiroto Shizuka announced he will retire in January 2015 due to health concerns.
freePRnow.com, 9/30/2013 -Since CVS Group was founded in 2005 by Hiroto Shizuka, the company has grown immensely, and become a leader in the field of small-cap equity research. Founder Mr Hiroto Shizuka commented following his retirement announcement saying “I dedicated my whole life to finance, specifically within the stock markets, and at my age I would simply like to enjoy the fruits of my labour, especially given my current health situation”.
Although there has been speculation on the precise nature of his health CEO Mr Hiroto Shizuka declined to elaborate on the subject saying “The nature of my condition has no relevance, it is only important to know that I am healthy now, and that I will be taking a Non-Executive Director position in my retirement”.
Mr Hiroto Shizuka did confirm however, that there will be no other changes to the corporate structure of the company, and that his replacement is to be announced publicly later this year. “We will be looking to appoint a CEO from within our current board first of all, but nothing is set in stone at this stage”.
Executive Director Mr Sato Tanaka, who has been with CVS Group since 2006 commented “With CVS Group currently looking to expand its operations in Tokyo, and being on the brink of opening its blue chip advisory in 2014, this news was unexpected, but all of us here respect our CEO’s decision to retire, and I hope to be considered as a candidate for his replacement in 2015”.
The Bank of Japan said the economy is recovering albeit slowly. Australia saw gains, boosted by positive trade data with top partner China. Australia's import and export data was much higher than expected.
BriefingWire.com, 9/27/2013 - Despite a statement released from the Bank of Japan saying the nation's economy is “recovering moderately,” the Nikkei Stock Average fell 1.6% after a 4% drop in the previous day’s trading session. Analysts at CVS Group attribute the loss to a stronger yen. As the yen's value increases it hurts Japanese companies that depend on income from overseas. The real estate company Mitsui Fudosan gained 1.5% after reporting a 8.3% rise in first quarter profits from a solid performance in their condominium sales and office leasing businesses. Kubota Corp. a machinery manufacturer rose 1.6% after they reported a 50% gain in profit from a weaker yen earlier in the year.
The Australian S&P/ASX 200 climbed 1.1%, which CVS Group analysts attribute to a stabilizing in China´s imports after a downturn. China is Australia's biggest trading partner. Exports from Australia rose 5.1% beating expectations of 2.8%. Imports were also up 10.9% shattering the expected 1.3% increase. Mining companies were among the nation's best performers with Rio Tinto Ltd. up 1.5% and BHP Billiton Ltd. gaining 1.2%.
In China the Shanghai Composite fell marginally losing 0.1% to close the day at 2044.9 and in Hong Kong the Hang Seng Index gained 0.3%. Resource firms performed well in Hong Kong, with China Resources Enterprise Ltd. up 3.5%, Petro China Co. Ltd. gained 2.59% and China Resources Land Ltd rose 2.56%.
In Taiwan the Taiex lost 0.2%. PC manufacturer Acer Inc. dropped 4% after posting a net loss in the second quarter, due to lower sales and larger marketing and chip costs.
CVS Group in Tokyo has today announced plans to launch an advisory service for blue chip investors on selected markets.
(1888PressRelease) September 17, 2013 - Tokyo, Japan - (PressReleasePoint) - Despite the company’s historical focus on small and micro-cap stocks, Chief Executive Officer at CVS Group Mr. Hiroto Shizuka has today announced plans for the company to open a new department specializing in buy-sell advisory management. As a boutique equity research house, CVS Group seeks to identify vastly undervalued equities with high growth potential. However, with blue chips such as Nokia rising 45% this week of the back of Microsoft purchasing its mobile phone division and licensing patents, Hiroto Shizuka claims CVS Group is missing out on revenue.
The blue chip advisory service (BCAS) is scheduled to commence in January of 2014 at the CVS Group Tokyo office, and will require some corporate restructuring as well as hiring portfolio managers to cater to the demand.
CEO Mr. Hiroto Shizuka commented on the announcement saying “At CVS Group we have developed a reputation as a premium, reliable information service that brings undervalued small cap stocks to clients. However many cautious investors can be reluctant to invest in small companies, even under expert advice due to the inherent risks, so CVS Group will now offer a full service, creating balanced portfolios with varied elements of risk attached.”
Plans are still be made for the new department, but it is expected to commence with approximately 15-20 portfolio managers, who will work initially only with the existing client base, then later next year once the business model has been proven, the department itself will begin to seek out new clients.
Mr. Sato Tanaka as Head of European Equity Research, will lead the EU team, he commented “I’m really excited at the possibilities this new project brings, and I very much look forward to getting started”.