EDGE Research

Investment research and advisory firm based out of Dhaka, Bangladesh.

[EDGE Research @edgernc]

We are pleased to announce the launch of our daily newsletter ‘The Daily EDGE’. This will feature a daily summary of key economic and business news for Bangladesh, delivered straight to your email inbox on weekdays.

Subscribe now at https://t.co/lwxna7uvX2

[Brian Feroldi @BrianFeroldi]

MEGA THREAD🧵

My Mission: To Spread Financial Wellness

All of my best threads on money, investing, and self-improvement can be found below

*This list will be continually updated ⬇️

[EDGE Research @edgernc]

Beta force for blue chips has increased dramatically in the last few years. 2014-17 was a period of very low correlations which rewarded bottom up investors greatly. Things changed 2017 onwards, when blue chips basically started moving with the index.

[Rahat Ahmed @dequinix]

When did "short selling" become a bad thing? Who started this myth? How is it wrong to assess that a stock is fundamentally overvalued?

Can there be bad actors in the market? Absolutely! But are they restricted to short selling? Undoubtedly no. Longs can also take advantage!

[EDGE Research @edgernc]

You know economy is back in business when you see this outside your window

[EDGE Research @edgernc]

@AaaArrJay We can do a series of charts taken from the report itself. But generally the writeup + chart combo works the best.

[EDGE Research @edgernc]

Please check out our recently published report on how global #commodity prices impact the equity market (#DSE) in #Bangladesh. The relationship is uncanny and can be used to explain historical bull runs. Download now at

https://t.co/qzfj0d8Vsw

[EDGE Research @edgernc]

EDGE has led a consortium of investors to take a minority position in Brainstation 23 a leading software development company in Bangladesh from BD Venture Ltd. We are grateful to the boards of both companies for making this deal happen.

[EDGE Research @edgernc]

Great day for EDGE. Intelligent Machines Limited our first startup investment made in 2018 just got funded by IDLC Venture Capital Fund I.

Link to news: https://t.co/vICh6d5IU8

[EDGE Research @edgernc]

Lastly, #capital machinery import is an indicator of #capex activity. As seen in the chart below, this has been the #slowest to #recover, and arguably still remains below last years benchmark. We expect numbers to recover by mid 2021.

[EDGE Research @edgernc]

We will be sharing a series of posts each week taken from our recently released #strategy note. The first one concerns alternative activity indicators which capture #Bangladesh's V- shaped #recovery from #COVID19.

[EDGE Research @edgernc]

We view #electricity consumption as an indicator of #industrial activity. Following the dip in April, it took as long as September to post a YoY growth, suggesting that industrial activity was #slow to pick up.

[EDGE Research @edgernc]

Startups in #Bangladesh are among the least funded among peer countries. However, slowly but steadily we are seeing change with interest growing. Logistics play Paperfly recently secured around US$11mn in funding from Indian Ecom Express.

https://t.co/x1nNXawglv

[EDGE Research @edgernc]

Turnover at the Dhaka Stock Exchange hit a 10-year high of US$300mn today. This is clearly a reflection of the extremely low-interest rates persisting in the economy. 91-day treasury bills are now yielding 0.57% compared to 7.08% just six months ago.

[EDGE Research @edgernc]

We have decided to stop posting daily news headlines on Twitter from now on. Instead, we will move the daily news to a newsletter format where a reader can opt-in or out. Link to be shared soon.

The Twitter account will only provide analytical content.

[EDGE Research @edgernc]

@Jobayer_Alam_ We have not come across a detailed study. However, some of the FMCG and MNCs in Bangladesh do cite the benefits. I.e. for Grameenphone the # of BTS required to reach the entire country is not too many. Same for distribution of goods for FMCG.

[EDGE Research @edgernc]

Through a series of tweets, we will go over the Bangladesh story. Here is the first one laying out the positive case for investing in Bangladesh. We will follow up with further posts including ones looking at risks and challenges.

[EDGE Research @edgernc]

@Jobayer_Alam_ Agree with you on the fiscal slips recently. The situation has also been worsened with COVID-19 leading to both higher expenses and lower revenues.

[EDGE Research @edgernc]

8/ Politically power is now concentrated with the Awami League. This has resulted in the end to strikes and 'hartals' every 5 years and also helped in long term planning.

[EDGE Research @edgernc]

7/ Bangladesh earns FX through remittances and RMG (both shockproof), while commodities are a primary import. During times of global economic stress, FX earners stay as-is while the import bill comes down. This means BDT is a good hedge on commodity led frontier/global economy.