July 2016 - Page 2 of 2 - Tematica Research

Experience-driven shopping and entertainment redefining the American Shopping Mall

This article in the Wall Street Journal talks about the new mall, one driven by our need and desire for an experience, even when shopping. It’s no longer about price or selection when you head the mall, it’s about the experience when you’re there. In our thematic world, this is an extension of the Content is King thematic that shows those experiences that engage us a consumers we will pay for.

After all, with literally everything you need at the push a button thanks to Amazon Prime and other online retailers, it takes more to get us off the couch and trek over and search for a marketing space than a 50% off coupon at Macy’s.

Landlords are nudging out the once-coveted big box chains in favor of sporting-goods retailers, fast-fashion chains, supermarkets, gyms, restaurants, movies theaters and other types of entertainment as they seek to keep their properties relevant in an age increasingly dominated by online shopping.

Source: Mall Owners Push Out Department Stores – WSJ

Continued market uncertainty after Brexit has us tightening up our positions

06 July 2016
by: Chris Versace, Chief Investment Officer
in: Digital Lifestyle
Tags: DOC, NKE, T, TLT
note: no comments

While we did come in from the beach long-enough last week to share our views on the Brexit vote, it’s good to be back in the saddle full-force with this week’s Tematica Investing. So let’s get right down to it . . .

In this week’s Tematica Investing:

Renewed Brexit fallout uncertainty and Italian banking concerns have tipped the market mood back to cautiousness. Recent earnings have been disappointing and likely set the stage for what is to be a challenging June quarter earnings season. We remain very comfortable with the Tematica Select List holdings given the mix of defensive business models and thematic tailwinds.
We are adding iShares Barclays 20+ Yr Treasury Bond ETF (TLT) shares to the Tematica Contender List and look to revisit the shares closer to $134-$135.
We are boosting our price target for AT&T shares to $45 from $42 and raising our protective stop loss to $39 from $36. We will continue to keep T shares on the Tematica Select List, but we would not recommend adding to your T shares at current levels.
We are also raising our price target and protective stop loss for our Physicians Realty Trust (DOC) shares. Our new price target is $25, up from $18, and our new stop loss is set at $18, up from $16. Much like T shares, we will continue to keep DOC shares on the Tematica Select List, but advise against committing fresh capital at current levels.
Nike (NKE) reported quarterly earnings last week, which were essentially in line. As expected the liquidation sales at Sports Authority and Sports Chalet will be a short-term disruption, and we continue to like the shares given our longer-term perspective. We continue to have a Buy on NKE shares and our price target remains $66.

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Safety & Security in the skies is more than TSA screening

We all want more and more of the comforts of home when we’re in the skies, including the ability to connect with work and friends, or continue to consume content at blistering paces — drivers of our Content is King and Connected Society thematics . Unfortunately, those connections in today’s world can also be an open door for those up to no good — best case unleashing viruses and hacks into our devices, or worst used to actually harm the plane. The airline industry is responding to this Safety & Security thematic playing out in the skies:

As aircrafts become ‘smarter’ and more connected, the chances of them being hacked increases, so it’s right that IT bosses are focusing on cybersecurity.

Source: Security the Winner as Airlines Plan Big Investments – Infosecurity Magazine

Millennials: Technology = Social Connection

Behind all those selfies, social media posts, likes, snaps, and shares, the Millennials are starting to impact real business models like banking, insurance and investing . . .

Millennials like to handle their finance themselves, and they primarily do so online. And their savvy extends beyond balancing their check books. Older Millennials are 28 percent more likely than average to buy mutual funds online. And, both younger and older Millennials are more likely than their older counterparts to engage in online trading. They’re also the heaviest Internet bankers and most likely to purchase insurance online.

Source: Millennials: Technology = Social Connection