The Lexington Group

The Lexington Group

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  • Last year The Lexington Group invested in a number of American air carriers, which paid off as the sector has significantly outperformed the S&P 500, they expect the trend to continue and for the share prices to keep rising. In December of 2012 The Lexington Group initiated positions in a number of American air carriers including; Delta (DAL) , Spirit (SAVE), Alaska Air (ALK), United Continental (UAL), and in a riskier move pink sheet shares of American Airlines (AAMRQ). Across their investments in the sector The Lexington Group has seen profits of 70%. A smaller position was taken in American Airlines after the company filed for bankruptcy and was de-listed from the NYSE and re-listed on the over the counter market, the pink sheet shares are up 330% this year. Analysts at The Lexington Group have identified various reasons for the upswing in prices. There has been a series of mergers that have made the airlines more efficient and profitable. The merges have given the remaining airlines the ability to cut capacity and finish their price wars. While this is not great for consumers, it will drive profits and boost the share prices. Analysts at The Lexington Group believe that the industry has become less risky as the air carriers have shifted their attention from gaining market share to managing and increasing profitably. The Lexington Group analysts think that the airlines are still a good value, considering that every airline has outperformed the overall...
  • Capture_177_ OCI Resource’s IPO is expected to hit the market by the end of the week and analysts at The Lexington Group are giving it a buy rating. The company has a strong customer base, experienced management, and substantial mineral reserves. OCI Resources is an American soda ash production division of Korea's OCI Chemical. They are planning to rise to $100 million by offering 5 million shares in a price range of $19 to $21. As $20 a share OCI Resources would have a market value of $400 million. Citi Group, Goldman Sachs, Barclays and Credit Suisse are underwriting the IPO which is expected to be listed on the stock exchange on Friday, September 13. While OCI Resources is a new company, their predecessor had been in business since 1962. OCI Chemical, the parent company, has a long history of strong operations, causing The Lexington Group analysts to believe that the company will continue to be stable. Analysts at The Lexington Group have identified the company's strong management team, stable long lasting customer relationships and the cost advantage of producing soda ash from trona as well as offering $0.50 dividend per quarter as making it a suitable investment for our clients who are looking for significant yield in this low interest rate environment. A risk with many mining companies is that their mine will eventually run dry, but this is not the case with OCIR. They have proven that there enough trona reserves in the ground to substantial the company for another ...
  • Capture_177_ Analysts at The Lexington Group predict gold to rally strongly in the second half of 2013. Citing a variety of factors including military intervention in the Middle East, quantitative easing, and increased consumption. Gold has been one of the worst performing commodities this year, losing more than 20% of its value since January. Analysts at The Lexington Group believe that the gold market has bottomed out and gold will rebound very strongly in the second half of 2013. They have identified a number of factors which will drive the yellow metal's value higher. In the short term The Lexington Group analysts believe that military intervention in Syria will spur prices up. Gold is a safe haven for assets at a time when political unsuitability and conflict can disrupt the markets. Investors are also concerned about escalating violence in Egypt. Gold is likely to perform well during crisis times. Analysts have also noted quantitative easing as a major driver of gold prices. Central banks print more money to boost growth, but the more it prints the weaker the currency becomes. As the currencies become weaker gold can fetch a higher price. Increased consumption from the Middle East to Asia, primarily in China and India will drive the price higher. China consumes nearly 100% of the world's gold mine production. When prices of gold plummeted in March the gold trade increased from under 10,000 kilograms daily to more than 40,000. Not only does the government stock pile the pre...
  • Capture_177_ Most Asian markets rose on Monday, with the notable exception of Japan. Hopes of delayed tapering by the US Fed drove gold and oil prices higher, boosting stocks in the sector. Most Asian markets performed well as investors in the region hope that the US Federal Reserve will delay tapering of its $85 billion a month bond buying program as well as positive reports from Chinese firms. The Shanghai Composite Index climbed 1.9%, on Monday; its biggest gain in two weeks following a statement from the National Bureau of Statistics, saying that the country is on track to reach its growth target of 7.5% for the year. In Hong Kong, the Hang Seng Index climbed 0.7%. in Seoul the Kospi rose 1%, and in Australia the S&P/ASX 200 finished up slightly, rising 0.2%, while in Tokyo the Nikkei Stock Average fell 0.2%. Japanese property developers performed well, after a local newspaper reported that the housing market was beginning to strengthen due to the benefits of government stimulus and housing purchases before the consumption tax rises in April. Both Mitsui Fudosan Co. and Mitsubishi Estate Co. rose 1%. The delay of tapering by the US Federal Reserve drove oil and gold futures higher, which in turn boosted stocks in the resource sector. In Australia Gold mining giant Newcrest Mining Ltd. climbed 4.9% and Kingsgate Consolidated Ltd. soared 6%. In Seoul, Korea Zinc Co. took 5.3%, and Zinjin Mining Group Co. gained 2.4% in Shanghai and 1.6% in Hong Kong. Oil refiner China Petrol...
  • Capture_177_ Spurred by positive PMI data from both the European region and Asia, the Stoxx Europe broke a 3 day losing streak. Mining firms were some of the day´s best performers. The Stoxx Europe 600 Index rose 1% on Thursday to snap a three session losing streak. The index was boosted by positive macroeconomic data from both the China and the Euro zone. Showing business expansion at its fastest rate in more than two years. A preliminary composite purchasing manager’s index climbed to 51.7 from 50.5 in July, representing a 26 month high. A reading above 50 indicates growth. China´s manufacturing PMI jumped to 50.1, a four month high, this month from 47.7 in July, representing an eleven month low. Among country specific indices; Germany´s DAX 30 Index rose 1.3%, In London the FTSE 100 Index climbed 1.1% after hitting a monthly low on Wednesday. And in Paris the CAC 40 Index rose 1.1%. The upbeat data from China helped to boost mining firms, as China is one of the world´s largest consumers of natural resources. In London, Rio Tinto PLC gained 2.2%, Glencore Xstrata PLC jumped 3.4%, Antofagasta PLC rose 2.1%, and BHP Billiton PLC added 2.4%. Most metals were also trading higher on Thursday. As oil prices rose, many oil firms traded higher. BP PLC rose 1.4%, Royal Dutch Shell PLC added 1.1% and BG Group PLC took 1.1%. Notable movers on Thursday were Dutch Supermarket chain Royal Ahold NV who climbed 5.1% as they reported a 3% rise in second quarter sales. Engineering firm IMI PLC s...
  • Capture_177_ The Lexington Group announces the expansion of its Equity Coverage into Thailand. Werawat Morakot joins the firm in Tokyo to leads a team of six analysts to cover various sectors in the country´s market. The Lexington Group, a leading Asian equity research, has begun equity research coverage in Thailand. They are in the process of building an experienced team of equity analysts in line with The Lexington Group´s continuing mission of producing equity research of the highest calibre for its global client base. Werawat Morakot joins The Lexington Group as a Non-Executive Director and Head of Equities Research in Thailand, and managing his team of analysts. He will be responsible for creating The Lexington Group´s Thai equity research strategy and financial and banking sector research. He will report to The Lexington Group´s Head of Asian Equity Research, Mr Haru Kobayashi. Werawat has over 15 years of equity analysis experience and comes to the firm from Société Générale where he covered the banking and finance sectors. Prior to that Werawat Morakot covered a wide range of sectors for a smaller equity researcher. “Since the inception of The Lexington Group, we have been constantly building our equity research capabilities across the Asian region; the launching of equity coverage in Thailand underscores our desire to further widen the range of our research products for our international client base. I am sure that Werawat and his new appointed team will continue The Lexin...
  • Capture_177_ The Lexington Group announces the hiring of three senior traders to strengthen their cash equities research in Tokyo. The three new employees bring a combined 46 years of experience to the division. Aug. 20, 2013 - CHIYODA-KU, Japan -- As part of The Lexington Group’s strategy to expand its American Equities division, they have hired three senior traders to head the industrial, consumer and technologies sectors. The company has created its core research capability across American equities and is focusing on enhancing its cash research offerings. John Marshall, Kevin Gill, and Dean Foster will be based in Tokyo and report to Mr Haru Kobayashi, Executive Director and Head of American Cash Research. John Marshall joins as lead industrial researcher. John has nearly 15 years of buy-side trading experience and joins from Barclays where he was an US equities trader for the last four years. Prior to that, John was at Bank of America for ten years as an industrial trader. Kevin Gill joins as lead consumer researcher. Kevin brings 17 years of buy-side trading experience, and comes most recently from Lloyds Banking Group where he was a trader in the consumer sector. He spent nine years at Goldman Sachs and five at JP Morgan. Dean Foster joins as lead technologies researcher. Dean has 14 years of sell-side trading experience. He joins from Deutsche Bank where he was a Consumer Sector Analyst. He began his career at Citigroup, where he spent ten years in numerous positions. “I...
  • The Lexington Group - Asia Report - 16.08.2013

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    Capture_177_ The Lexington Group reports Asian markets fall after the Dow Jones. Most were down due to a drop on the Dow, but the Australian S&P/ASX was supported by gold mining firms. Aug. 16, 2013 - CHIYODA-KU, Japan -- Most markets in Asia fell on Thursday after a 100 point drop on Wednesday the Dow Jones Industrial Average. In Tokyo the Nikkei Stock Average fell 2.1% to erase solid gains made in the two previous trading sessions, Taiwan´s Taiex lost 0.8% and the in China the Shanghai Composite dipped 0.9%. The Hang Seng in Hong Kong finished will a marginal loss, while Australia´s S&P/ASX 200 gave up a tenth of a percent. The Kospi in South Korea was closed for a holiday. Losses in Tokyo were spread across a broad range of sectors with some of the most notable decliners including; Mitsubishi Motors Corp. lost 2.9%, Panasonic Corp. slid 3.2%, and Daiwa Securites Group gave up 3.7%. Gold mining firms rose in Australia as the yellow metal´s price rose 1% yesterday; Kingsgate Consolidated climbed 3.1% and Newcrest Mining Ltd. rose 1.3%. The financial services firm AMP Ltd. gained 3.5% even after announcing that first half of the year profits fell 9% but still beat earlier projections. The fall in profits came from a poor performing life insurance division which experienced unusually high number of claims. In Hong Kong, a number of blue-chip companies released earnings reports and the markets responded in turn. The personal computer manufacturer Lenovo Group Ltd climbed 2....
  • The Lexington Group – EU Report – 14.08.2013

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    Capture_177_ The Lexington Group reports positive GDP data in the European Region as well in France and Germany helped to boost earnings on Wednesday, while BOE minutes hurt the FTSE. Aug. 15, 2013 - CHIYODA-KU, Japan -- European stocks gained for a fifth straight day with the Stoxx Europe 600 Index up 0.3% after the release of second quarter GDP data showing that Europe has emerged from a six quarter recession. Overall European gross domestic product rose 0.3% beating market expectations of 0.1% to 0.2%. GDP growth also beat expectations in two of biggest economies in the Euro zone. In Germany GDP grew 0.7% where 0.6% was forecasted. In the first quarter in German there was flat growth. In France growth expanded by 0.5%, much higher than the forecasted 0.2%. In the UK, the Bank of England said it would leave interest rates unchanged until the unemployment rate drops below 7%, which they do not expect to happen until 2016. But data from the UK Office for National Statistics suggests that the 7% level could be reached sooner than expected, which has worried investors. The FTSE 100 index fell 0.4% to close at 6,587.43. The day´s biggest gainer was Norwegian oil field services firm Subsea 7 SA, which jumped 8.5% after reporting a smaller than forecasted loss in the second quarter. The pest control and hygiene firm Rentokil Intial PLC rose 6.1% after reporting a 5.2% rise in first half of the year operating profit. Mining firms were on the decline in the UK. Eurasian Natural Res...
  • Capture_177_ Chinese and Hong Kong Stocks climbed on positive data and potential stimulus, while GDP data which fell short of expectations hurting Japanese firms. Aug. 13, 2013 - CHIYODA-KU, Japan -- Chinese and Hong Kong stocks soared today to lead Asian Markets. The Shanghai Composite jumped 2.4%, its biggest gain in a month, while the Hang Seng in Hong Kong added 2.1% to finish at its highest level since the beginning of June. “The markets are still gaining on last week´s data showing that Chinese trade indicators and monthly industrial output had beat expectations,” said Analyst Matthew Stevens at The Lexington Group. “A Hong Kong daily newspaper also reported on Monday that the Chinese Government was discretely offering stimulus to important cities and provinces to support local economies. Policy makers stated that national stimulus is out of the question, but said that “unofficial stimulus” was possible to support key regional economies.” Construction and related material stocks were some of the best performs in China and Hong Kong. In Shanghai Anhui Conch Cement Co. gained 4.5% and property developer Gemdale Corp. took 4.4%. And In Hong Kong, China Resources Land Ltd rose 2.3% and Aluminum Corp. of China Ltd. gained an impress6%. The gains in China and Hong Kong did not help to drive earnings in Tokyo, with the Nikkei Stock Average falling 0.7%. The drop came on the back of data showing a decline in Japanese GDP. The Japanese Government report released on Monday showed that...

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The Lexington Group

Otemachi Nomura Building, 2-1-1, Otemachi
Chiyoda-ku, Tokyo 100-0004
Japan
+81 3452 09601

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