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AIRA 2018 Conference: “Navigating uncharted territory”

The Australasian Investor Relations Association (AIRA) annual conference is the leading event for IR professionals and listed companies in Australasia. Once again Edison was a lead sponsor at the event and CEO, Fraser Thorne was invited to provide an international perspective to the issue of MiFID2 and outline how it is likely to impact companies looking to access European capital markets. More

Edison Update Q3 2018

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Edison Update Q1 2018

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MiFID II regulations are now the law of the land across Europe, sparking change in the sell-side research business as banks and brokerages forge fee-based research models.

For IR Update, US magazine of the National Investor Relations Institute (NIRI)
Issued January/ February 2018 More

Edison Update Q3 2017

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MIFID II: The emperor’s new clothes

While I was on holiday last week, one of Edison's UK mid-cap (c £500m market cap) clients came into the office. Among the topics of conversation was the management team's desire to hear our view on MIFID II. It was prefaced by the statement: "we know you’re fine, because every bank or research provider we talk to about the impact of MIFID II says they’re fine." More

Edison Investment Research shortlisted for Best Research award at this year’s AIM Awards

Edison Investment Research is pleased to announce it has been shortlisted for this year’s AIM awards in the Best Research category. The firm wishes to extend its gratitude to those who have both supported over the past twelve months and nominated the team for this award. More

Edison Update Q2 2017

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Edison chosen as research partner by Deutsche Börse

Edison is now engaged by four major global exchanges to provide equity research on their listed companies. Edison is delighted to have been chosen as the research provider for Deutsche Börse’s new SME market. This marks the fourth major stock exchange globally for which Edison is providing high-quality, in-depth equity research to improve the visibility, understanding and liquidity of companies. The contract win from Deutsche Börse follows Edison’s successes with exchanges in Singapore (SGX), Tel Aviv (TASE) and New Zealand (NZX). More

Edison partners with Master Investor Show

Edison, the investment research and advisory company, is once again partnering with the UK’s largest event for private investors. Now in its 15th year, the annual Master Investor Show connects investors with the CEOs and founders of exhibiting companies. The event takes places at the Business Design Centre, London on Saturday 25 March. As partners, Edison will showcase its extensive network of corporate clients to thousands of private investors. More

Edison to participate in the Deutsche Börse’s new SME segment

Deutsche Börse to launch new exchange segment to enhance access to investors and growth capital for small and medium-sized enterprises Scheme marks the fourth global exchange for which Edison has been selected as equity research provider Edison Investment Research is pleased to announce it has been selected to be a leading global research provider of non-rated equity research in Deutsche Börse’s new small and medium-sized enterprise (SME) segment. Launching on 1 March 2017, the new segment replaces the Frankfurt Stock Exchange’s Entry Standard and aims to facilitate access to growth capital for SME enterprises. More

Edison initiates coverage on Nano Dimension, marking the start of the Tel Aviv Stock Exchange (TASE)

Edison, the international equity research and investor relations firm, has published its first investment analysis note under the TASE research agreement with the initiation of Nano Dimension, which will be distributed to investors in more than 128 countries, including leading institutional investors. More

Edison and Tel Aviv Stock Exchange launch equity analysis project..

Edison, the international equity research firm, will publish research that includes financial and scientific analysis of the companies for a period of two years. The equity research will be distributed to investors in more than 128 countries, including leading institutional investors. More

From active to passive management: IROs beware

How IR teams can limit loss of control due to the increase of passive funds on their register As an industry, asset management is in turmoil, caught in the middle of fundamental change driven by a few key factors: the advent of new technology, the rise of millennials, concerns over fees and performance, and the related shift from active to passive management. While the latter may seem one step removed from the work of IROs, in practice this is a seismic shift that has major consequences, particularly at the lower end of the market. A greater role for passive investment entails a loss of control for IROs, complicates fundraising and may delay IPOs. More

Charles Gibson speaks at Charles Russell Speechlys breakfast seminar

Charles Gibson speaks at Charles Russell Speechlys breakfast seminar Charles Gibson, mining analyst at Edison, presented at a breakfast seminar hosted at Charles Russell Speechlys, exploring the current gold price cycle. The subject of mining commodity prices could hardly have been a more topical issue, as the front page of City AM heralded a rally in the sector on the morning of the seminar. More

HTC - selling the family silver

HTC is selling the family silver to stay alive HTC reported dreadful Q1 16 results as EBIT losses ballooned to 32% of sales while revenues fell 36% YoY and NT$5.1bn (37% of sales) of cash from operations was burned. The company has continued to lose market share triggering the classic handset death spiral. This means that it has to continue cutting costs which results in its devices becoming less appealing thus denting market share again and so on. More

GoPro – Needs a hero Pt II

We think GoPro will end up being acquired The difference between Fitbit and GoPro is that Fitbit has understood that the hardware is becoming irrelevant whereas GoPro has yet to understand this crucial fact. GoPro produced a reasonable set of results relative to substantially reduced expectations, but went on to delay the launch of its Karma Drone until Q4 16 while it irons the kinks out of the system. Q1 16 revenues/EPS were $184.5m/LOSS $0.63 compared to consensus of $170.0m/LOSS $0.60. Inventory has been wound down to meet the lower demand outlook and Q2 16E revenues should be higher as sell in volume no longer suffers the inventory drag. However, the company is far from being out of the woods and pent up demand for its Karma drone is – in our view - likely to bring fleeting relief at best. Furthermore, we are concerned that the Karma will not be ready for the holiday season as the problems being encountered relate to the drone being able to pilot itself to some degree. This is a problem that the drone industry has been grappling with for some time and even the $1,400 DJI Phantom 4 and the much publicised Lily are a long way from getting this right. More

Fitbit Q1 16. Forced hand

Fitbit is being forced to spend to stay ahead Fitbit reported good Q1 16 results, but cut guidance in order to ramp up spending and thereby placed unrealistic expectations of profitability in H2 2016. This is particularly worrying as there are clear signs that commoditisation is forcing the company to increase spending, hitting profits. More

Android security. Culture vulture

Security issues highlight more pressing problems Google is trying hard to fix the endemic security issues that continue to plague Android devices, but unfortunately it is making almost no progress. Since August 2015, it has been releasing monthly security updates to address the security flaws but there are two big problems. More

Amazon / Baidu Results – Away from

Both companies being driven by new businesses Amazon Q1 16 Amazon reported mighty results as Amazon Web Services (AWS) grew by 64% YoY and contributed 55% of group EBIT despite only contributing 9% of total sales. Q1 16 revenues/EBIT/EPS were $29.1bn/$1.07bn/$1.07 compared to consensus at $28.0bn/$584/$0.59. More

Facebook Q1 16. Painful splits

A stick in the eye for corporate governance A great set of results was marred by the timely announcement of a share split that further strengthens the founders’ grip on the company to the detriment of all other owners. Q1 16 revenues/adj-EPS were $5.4bn/$0.77 compared to consensus at $5.3bn/$0.62. Although revenues beat by 2.5%, EPS beat by 23% mostly due to a lower tax rate but also due to expenses growing more slowly than revenues. The outlook for profit and cash flow has also improved as the company stated it should be able to keep expenses within the current plan despite revenues faring better than expected. With 1.65bn monthly active users (MaU’s) and 1bn daily users on mobile devices, Facebook still has all the makings of the biggest ecosystem of them all. The good news is that the company has recognised this and is moving full steam ahead to make the most of the opportunity that it has. More

Apple & Twitter results. Show me the money

Cash flow is king when growth deserts Apple Q2 16. Apple reported difficult Q2 results but critically, iPhone shipments fell by far less than many had feared, confirming our view that this is the end of a cycle not a secular decline. Q2 16 revenues and EPS were $50.6bn/$1.90 missing consensus of $52.0bn/$2.00. iPhone shipments were 51.2m compared to consensus of 51.0m with ASPs of $642 compared to $670 in Q1 16. A large part of the ASP weakness can be attributed to the strength of the USD which impacted overall revenues by 4% during the quarter. iPad shipments were 10.3m slightly better than expected driven by the larger screen iPad Pro. Mac shipments were 4m, slightly missing expectations as the weakness in the PC market has finally impacted demand for Macs. More

Amazon – Proper practitioner?

Signs of progress at last Amazon is finally showing signs that it is beginning to understand the value that creating an ecosystem could bring to its bottom line. It has made some changes to its Amazon Prime as well as to its Twitch website which point to it expanding coverage of Digital Life as well as understanding the importance of user numbers. More

Microsoft and Alphabet – Two more strikes

Microsoft and Alphabet compound Ericsson’s and Intel’s woes Microsoft Q3 16 Microsoft reported reasonable results as the weakness in the PC market did not hurt the company as much as Intel’s troubles led us to fear. FYQ3 16 revenues/adj-EPS were $22.1bn/$0.62 compared to consensus at $22.1bn/$0.64 and our forecasts at $20.3bn/$0.52. More

Edison’s Digital Car Auto-Tech Conference

Our Digital Car conference is online! See ARM, Laird, NCC Group, paragon, Seeing Machines and Catapult discuss the future of the car. More

Technology – Alphabet – In the soup

The EU kicks off a lengthy war with Google over Android. Google has been formally accused by the EU of abusing its dominant position in Android to the detriment of its competitors and EU based users in general. The accusation takes the form of a Statement of Objections following an initial investigation, but it is not in any way a final judgement of guilt. That finding comes later (potentially years) once the commission has deepened its investigation and Google has had an opportunity to respond to the allegations as well as take remedial action. More

Technology –Yahoo and Intel Q1 16 – Falls at the first

Intel reported a difficult set of results and cut 10% of its workforce as the server business can no longer compensate for the damage being done by the weakness in PCs. Q1 16 revenues/ EPS were $13.7bn/$0.42 broadly in line with forecasts of $13.8bn/$0.37 but the outlook was weak. Yahoo reported results that just beat the very low expectations set by management but beneath the veneer, we see declining engagement in mobile. Q1 16 revenues-ex TAC/Adj-EPS were $859m/$0.08 compared to forecasts of $847m/$0.08 but guidance for Q2 16 disappointed again. More

Car is the star - Shares Magazine

The car industry is racing ahead thanks to popular credit schemes enabling consumers to get the latest cars at low monthly prices. Car sales in the US hit a record 17.5 million in 2015 and European car sales are improving. Against this backdrop is a wealth of opportunity for UK investors thanks to a plethora of companies on the London Stock Exchange being linked to the automotive industry. From car component engineers and vehicle retailers to engine efficiency specialists and miners of commodities used for car batteries, investors are spoiled for choice for ways to play the car theme. Technology drivers One area attracting considerable attention is the technology side of the industry. Science and engineering advancements are rapidly turning your car into a real mobile box of tricks, and they are increasingly becoming on-the-go extensions of our homes. Road trips are made more enjoyable, and traffic jams more bearable, thanks to modern cars providing access to your music library, TV shows for the kids and calls to friends and family. Many analysts believe in-car technology is among the fastest-growing in the tech eco-sphere, thanks to desktop PCs going ex-growth, while smartphone and tablets head towards saturation. Investor interest in this emerging opportunity is rapidly growing. The Digital Car automotive technology conference, run by investment research house Edison, was jam-packed at its London office on 17 March 2016. ‘The car of the future may become the most powerful computer you will ever own,’ says Edison’s global head of technology, media and communications, Dan Ridsdale. More

Technology – Samsung Q1. Forgotten jewel

Samsung reported good results with profitability bolstered by both handsets and semiconductors.Q1 16 revenues/EBIT were approximately KRW 49tn/KRW 6.6tn nicely ahead of consensus at KRW 48.8tn/KRW 5.5tn and our estimates at KRW 48.8tn/KRW 5.5tn. The initial figures for the Galaxy s7 look to have been much stronger than the Galaxy s6 mainly as a result of its lower price. The s7 was also available a month earlier than the s6 giving it more time to have a positive impact on the Q1 16 figures. Although all of the attention is being placed on the handset business, we suspect that Device Solutions also contributed to the better than expected figures. Samsung has reported revenues very close to our forecasts so the improvement in profit has all been about an improvement in margin. More

Technology – Apple – History lesson

History repeats as nothing has changed It looks as if the iPhone SE is off to a slow start indicating that the $50 price cut was not enough to prevent the history of the iPhone 5c from repeating itself. Early data from analytics firm Localytics which tracks installations of 37,000 apps on 2.7bn devices globally is showing that in its first weekend the iPhone SE managed to grab just 0.1% share of the iOS ecosystem. This compares to 2% for the iPhone 6 and 1% for the iPhone 6s adoption in the first weekend of launch. This initial assessment is supported by the anecdotal observation that there were no long lines at Apple stores and that almost every outlet is reporting good availability of the device. This is symptomatic of one of the biggest problems that Apple is grappling with. Its shareholders are demanding growth and because it utterly dominates the segments within which it operates, it will have to go deeper into the mass market to achieve that growth. More