What’s going on and what about 2019?

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What’s going on and what about 2019?


  • Since October, equity markets have been in a tailspin. While until the end of September we were on buy on dips mode, all of a sudden everything changed to a sell on a rally mode. But what has really changed? What was the trigger that made these markets all of a sudden volatile and so unpredictable?
  • While we were on the “a correction might come but not a major sell-off” camp, our comments might be taken with a bit of salt. This crisis reminds pretty much the one we had in 2015, when China started to devaluate his currency. At the time, the US equity markets sold off 10% on average, US high-yield corporate yields soared from 6.5% to over 10% and the 10-Year US Government bonds yields went from 2.5% to 1.5% in just six months.


For more details, please download the full article on the right.




Tech Sector Update

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Tech Sector Update: It's Definitely Not Time To Throw In The Towel 


  • The valuation of Tech stocks and more specifically of semiconductor players (12x 2019 EPS) is close to factoring in a brutal economic slowdown…
  • While a scenario of softer but still robust growth in 2019 is more likely
  • This valuation multiple leaves little scope for hope of a settlement between the US and China or for a reacceleration of the industry growth following the current softening while secular growth drivers are well in place with Tech taking over massive industries (auto, financial services, healthcare)
  • Any temporary revenue growth slowdown and valuation multiple compression could be used as an opportunity to increase exposure to a Tech industry whose weight in global GDP will arguably keep rising over the years


For more details, please download the full article on the right.




Bionic Ears

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Bionic Ears: New Hope For Hearing Loss


Today, Hearing loss affects nearly 5% of the global population and, by 2050, this number is expected to double, mostly driven by a growing aging population and an increasing life expectancy.

The treatment options include Hearing Aids and Cochlear Implants.

Hearing aids are devices typically fitted in or behind a wearer’s ear, designed to amplify the sound. 

Cochlear implants are surgically implanted devices addressed to people with severe to profound sensorineural hearing loss.

The low penetration rate of these devices may represent a strong growth opportunity…



Tech sell-off: Threat Or Opportunity?

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Tech sell-off: Threat Or Opportunity?


The Technology sell-off of the last few days has been quite brutal even if a correction had been in the air for quite a long time with many investors quoting spectacular gains in 2017 and high valuations (we disagree on this) as the main reasons for taking profits or not investing in Technology.

In our view, such a move points to a healthy market and will ease market exuberance concerns as some investors lock in profits and switch to investments towards other strategies they deem more attractive on a risk/return basis and as some others, who were waiting for a correction, will take the opportunity to enter into the space or increase their exposure.

What’s of utter importance when investing, especially in high-growth sectors like the ones we cover at AtonRâ Partners, is to always have a perfect view of catalysts and triggers in order to have a competitive edge.




AtonRâ Bionics Update

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The FDA Move A Breakthrough Moment For Bionics


Contrary to what one might think, governments across the world are gradually becoming supportive  of the Technology and Digital industry and political decisions in the last 12 months have had a tremendous and positive impact on many tech segments.



Innovation and Artificial Intelligence Update

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Electric Vehicles At An Inflexion Point


We have long been playing the electric car & autonomous driving theme in our Innovation and Artificial Intelligence portfolios through positions in specific semiconductor companies and car manufacturer Tesla, considering that the Tesla Model 3 release would lead traditional carmakers to accelerate their pace of innovation and the shipment of electric and smart cars for the mass market.



AtonRâ Fintech Update

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Things Are Moving Fast As Square Applies For A Banking License


Payment processor Square (SQ US) announced last week it would apply for a banking license in the US. Following similar moves from private startups SoFi and Varo Money, this is the first time a listed fintech tries to get the banking status since the US administration’s decision late last year to open up a specific bank charter to fintech companies.



M&A heating up in the Mobile Payment Space

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We have long been saying that the payment processing market (or, more basically, the handling of electronic payment transactions) is highly fragmented and that companies with sufficient financial firepower will try to expand their geographic footprint and show off the scalability of their business model through EPS-enhancing acquisitions.


Trumpxit - And Now?

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Following Donald Trump's election we assess the political and financial consequences and more specifially the implications for our different themes and certificates.


Biotech And Pharma Madness

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After huge pressure on the Pharma and Biotechnology names in October (including our Biotech actively-managed-certificate), the first week of November did not give any sign of relief.


AMD: Remaining upbeat after the Equity Offering

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The headline dilution numbers, as well as the surprisingly high discount on the offering price ($6 vs. a $7.30 price prior to the announcement), arguably drove the stock price pressure. That said, we view this balance sheet repair positively, both on financial and strategic grounds.


Nvidia's Ludicrous Mode

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Impressive revenue acceleration confirms that Nvidia has entered into a new, massive growth cycle. We believe the recent price run does not fully capture the company’s earnings power and that multiple expansion and earnings upside could drive Nvidia’s valuation 25-30% higher.


GOPRO: Beat And Raise Cycle In The Making

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Consensus’ expectation of a 10% growth in GoPro’s action camera segment in the second half of the year (driven by the HERO5 launch) appears extremely conservative in light of similar refresh cycles undertaken by other tech companies. In our view, GoPro is likely to reach the high-end of its guidance (or even exceed it), pointing to at least 9% revenue upside.


Zynga: Margins On The Right Track

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While the market was again disappointed by Zynga’s declining user numbers, we believe that this issue could be fixed soon as Zynga released in early Q3 “CSR2, a racing game which ranks among the top grossing apps on iOS and Google Play in the U.S., and will launch “Farmville: Tropic Escape” in late Q3 and “Dawn of Titans” in Q4. With profitability on the right track, we stick to our view that the company's earnings are at an inflection point.


EA: Gunning For A Strong Holiday Season

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EA’s focus on GAAP guidelines for Q2 and FY17 is likely to create some confusion among investors who have historically handled non-GAAP numbers. That being said, investors should mainly pay attention to management’s high level of confidence about the company’s outlook during the conference call, suggesting that the risk is skewed to the upside. A detailed analysis of the company's product lineup points to 5% revenue upside for FY17.


AMD: Q3 & Q4 Expectations Offer Significant Upside

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For the second quarter in a row, AMD delivered a solid revenue and earnings beat. Investors are likely to shift their focus from AMD's weak balance sheet to the company's numerous growth opportunities and long-term earnings power.