/Publications from R&A

LINC R&A is recruiting!

LINC R&A is recruiting new student analysts! LINC R&A provides Bachelor and Master students at Lund University the opportunity to practice Equity-, Investment- and Trading/Quantitative research while at University, together with ~ 45 other ambitious student analysts. As an analyst, you will start building your professional network, get exposure towards finance professionals and learn how [...]

Bahnhof AB – Spinning-off Elementica creates positive short-term triggers

An increased revenue per customer leads to continued growth and increased margins. A slowdown in the expansion of fiber optics networks but an increase in sales from complementing product categories, such as VPN and cloud services combined with an upgrade of the current fiber optics network is expected to drive growth of 14.7% CAGR between [...]

Spinoffs – Trading Spinoffs

Research has shown that several factors causes spinoffs to have an increased initial volatility. The trading system in this report analyses and trades on 16 different spinoffs from 10 years back, focusing on spinoffs from the Stockholm Stock Exchange. The main driver of the system is the high initial volatility created in spinoffs from IPO. [...]

Overlooked Opportunities in Oil – Going short on exposed oil companies

During 2018 the prices of WTI and Brent crude oil have certainly had their ups, and more recently, downs. This report outlines what will drive the oil prices over the coming months and suggests taking a short position in two energy companies whose stock prices correlate highly with the prices of WTI and Brent crude [...]

Pricer – High expected sales growth following Best Buy order and overall strong market growth

Pricer’s revenue is expected to grow by 18,6% CAGR between 2017 and 2020. The total market for ESL is expected to have strong growth of 24% CAGR between 2017 and 2023 and as a market leader, with roughly 25-35% market share in key markets, Pricer is positioned to capitalize on this growth. Pricer is expected [...]

The Elephant Next Door – Yield curve anomaly provides free leverage for hedged speculation in the yield curve front end

Growing concerns of an imminent economic slowdown has triggered investors to look for safer alternatives. Portugal has shown strength by recovering since the crisis in 2012, with persistent growth and a declining unemployment. Amongst the love clouds, we find several warning signs that might affect their 10-year government bond yield. At the same time, we [...]

Late cycle is not end cycle – Opportunities in the front end of the US Yield Curve

The US economy has continued to expand for almost a decade, prompting policymakers at the US Fed to raise interest rates for the third time this year, to 2.25%. Moreover, a rising rate environment spurred by QT from the Fed and ECB could prompt more late-cycle signs, thus maintaining downward pressure on long-term bond yields, [...]

Aborted lift off – The never increased interest rate

After two months of an increasingly volatile market and an October with the most negative performance since 2008, there is a demand for alternative investments to generate a return beyond the stock market. This analysis will further describe an approach to earn this return.  Sweden is an archetypical open economy, and its export-oriented companies are [...]

Opus Group – New division, regulations and a growing car fleet enables organic growth

The car fleet grows in focus markets with a limited vehicle inspection culture in emerging countries. The car fleet in Opus geographic areas grew with 3% leading to an increased demand and possibility for organic sustainable growth. An increased demand for vehicle inspection together with Opus establishment in new geographic areas with newly established and [...]

INVESTWEETS – Trading on sentiment

There is no doubt that sentiment affects decisions and thus market prices. Our trading system uses Twitter data to measure the sentiment for 26 stocks included in the S&P 500 stock market index. By analyzing the sentiment, the system is able to exploit behavioral biases. The main feature of the system is the word analysis [...]