Adnaan Ahmad The Tech Analyst
What does AA Research offer?
Mis-priced global technology stocks (US, Asia and Europe)
AA Research is not a “blanket coverage” based model. A search is made for global tech stocks, which are felt to be mispriced. Examples could include where the consensus view has under-estimated growth and leverage in a company’s financial model, a failure to unearth a valuable asset, or was just too bullish on growth and margins.
The initial focus is the global tech hardware space. However, over time, mis-priced technology stocks in all sub-sectors i.e. social media, security, software and services, will be analysed. Ultimately, it is not about the technology, but whether the stock is over or under-valued relative to its financial profile.
Provoke thought around structural issues and trends
Regular themes are centred upon global technology, including:
- Macro impact on technology
- Cash generation and uses at global tech giants
- Shareholder activism in technology
- Impact of China on the technology sector
- Impact of Amazon Web Services on the technology sector
- History of fallen tech giants
- Historical product cycle analysis and impact on stock prices
The key service offering is to provoke thought around structural issues and trends, which could impact the tech space and stocks. A note-style format, shown to be an “easy to read” approach to a theme or stock, is clear, concise and “to the point”, compared to multiple, lengthy reports.
The reports are available in chronological order online and are accessible to paying investors via a distribution platform.
Why the Consensus view is wrong
Company models are primarily centred around where the consensus view is wrong. The focus is on why it is thought that items such as, revenues, margins, earnings and free cash flow development are not what they seem to be for a specific stock.
Previous examples of a different view taken versus consensus include Qualcomm’s long-term QCT (chip) business margin structure and Samsung’s smartphone margins. A detailed explanation clearly shows how the conclusions were reached and why the consensus view was therefore, considered mistaken.
Research and Service Package
“Ideas” meetings as well as regular interaction by phone and/or email are provided for investors who prefer a full “research and service” package.
Open letters
Occasionally, open letters are directed to Managements and Boards, to share views on strategic direction and shareholder value enhancement.
Bespoke Service
The opportunity to investigate more deeply into any particular topic and/or stock is also available as a separately priced bespoke service.