Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Bottom-Up

It was reported in numerous Korean media today that the Trump administration plans to impose much higher tariff rates on Korean steel products and that this official announcement by the US government is likely to be made in the next few days (by end of September). The implementation of the much higher tariff rates is likely to be effective starting this year. On the back of this news, the major steel stocks in Korea are lower today: <ul>
<li>
<a href="https://www.smartkarma.com/entities/208" target="_blank" data-smartkarma-citation="entities:208:1">POSCO (005490 KS)</a> - down 4.0%</li>
<li>
<a href="https://www.smartkarma.com/entities/963" target="_blank" data-smartkarma-citation="entities:963:1">Hyundai Steel Co (004020 KS)</a> -…</li>
</ul>

It was reported in numerous Korean media today that the Trump administration plans to impose much higher tariff rates on Korean steel products and that this official announcement by the US government is likely to be made in the next few days (by end of September). The implementation of the much higher tariff rates is likely to be effective starting this year. On the back of this news, the major steel stocks in Korea are lower today: 

POSCO (005490 KS) - down 4.0%

Hyundai Steel Co (004020 KS) -…


Trump Administration Plans to Impose Much Higher Tariff Rates on Korean Steel - Impact on POSCO

Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

Korea / Special Sits, Pairs, Index Rebalancing

Event-Driven

<a href="https://www.smartkarma.com/entities/991" target="_blank" data-smartkarma-citation="entities:991:1">Celltrion Inc (068270 KS)</a> said in a regulatory filing that it will have EGM at 10 AM on Aug 29 to decide whether it will move to KOSPI.<div class="content-highlight">Below is the link of this regulatory filing in DART.<a href="http://dart.fss.or.kr/dsaf001/main.do?rcpNo=20170821900093" target="_blank">http://dart.fss.or.kr/dsaf001/main.do?rcpNo=20170821900093</a></div>Apparently, a majority of Celltrion shareholders will approve KOSPI move. So, it now seems that this is almost a done deal. Of course, KOSPI move itself won't make much difference in terms of short trade volume. But what is important is that there is a very high possibility that Celltrion will be included in KOSPI200.Yes, KOSPI200 inclusion is a big thing. So, any trading opportunity here? Alright, let's find it out.

Celltrion Inc (068270 KS) said in a regulatory filing that it will have EGM at 10 AM on Aug 29 to decide whether it will move to KOSPI.Below is the link of this regulatory filing in DART.http://dart.fss.or.kr/dsaf001/main.do?rcpNo=20170821900093Apparently, a majority of Celltrion shareholders will approve KOSPI move. So, it now seems that this is almost a done deal. Of course, KOSPI move itself won't make much difference in terms of short trade volume. But what is important is that there is a very high possibility that Celltrion will be included in KOSPI200.Yes, KOSPI200 inclusion is a big thing. So, any trading opportunity here? Alright, let's find it out.

More Discussions on Impacts of Celltrion's KOSPI200 Inclusion

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

MSCI AC Asia Pacific Excluding Japan Index / Technical Analysis

MSCI AC Asia Pacific Excluding Japan Index

As all eyes are focused on Europe—the current darling trade—Asia is emerging as a technical leader. The MSCI All-Country Asia Index (below) is breaking out from a two-year base. Relative strength (vs. MSCI ACWI ex-US) depicts a similar pattern; after lagging since mid-2015, its RS trend has slowly rounded higher, resulting in the recent breakout. Combined, this warrants an overweight.Today’s report is a country by country review of leadership and actionable themes within the region, including stock recommendations.

As all eyes are focused on Europe—the current darling trade—Asia is emerging as a technical leader. The MSCI All-Country Asia Index (below) is breaking out from a two-year base. Relative strength (vs. MSCI ACWI ex-US) depicts a similar pattern; after lagging since mid-2015, its RS trend has slowly rounded higher, resulting in the recent breakout. Combined, this warrants an overweight.Today’s report is a country by country review of leadership and actionable themes within the region, including stock recommendations.

Thematic (Sector/Industry)

<ul>
<li><div class="content-highlight">In this report, we have identified 26 stocks in the Korean stock market that have announced share buyback programs so far in 2017. These stocks that have been buying back their shares have been outperforming the market in recent weeks. Share buybacks continue to be an "alpha generating" catalyst in the Korean stock market. Time and again, companies that buyback stocks in Korea tend to outperform the market.</div></li>
<li>For example, these 26 stocks that have announced share repurchase programs in 2017 are up…</li>
</ul>


In this report, we have identified 26 stocks in the Korean stock market that have announced share buyback programs so far in 2017. These stocks that have been buying back their shares have been outperforming the market in recent weeks. Share buybacks continue to be an "alpha generating" catalyst in the Korean stock market. Time and again, companies that buyback stocks in Korea tend to outperform the market.
For example, these 26 stocks that have announced share repurchase programs in 2017 are up…


Alpha Generation from Share Buybacks in Korea (2017 YTD)

This report is an update on the implementation of the "put-back option clause" for IPOs in the Korea Stock Market (for companies applying under the "Tesla requirements"), which the Korean regulators proposed last year to be implemented starting this year. The "Tesla requirements" are technology/high growth oriented companies that may not be current profitable but show much promise in their future growth potential.Just a reminder that the proposed put-back option guarantees the investors a…

This report is an update on the implementation of the "put-back option clause" for IPOs in the Korea Stock Market (for companies applying under the "Tesla requirements"), which the Korean regulators proposed last year to be implemented starting this year. The "Tesla requirements" are technology/high growth oriented companies that may not be current profitable but show much promise in their future growth potential.Just a reminder that the proposed put-back option guarantees the investors a…

Update on the Put Back Option Clause for IPOs in the Korea Stock Market

South Korea

Hyundai Steel Company is an electric furnace steel maker.  The Company manufactures concrete reinforcing bars, H beams, stainless steel sheets, cast steel, and other steel products.  Hyundai Steel sells its products to the domestic and overseas markets.

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Hyundai Steel (004020 KS)

Trump Administration Plans to Impose Much Higher Tariff Rates on Korean Steel - Impact on POSCO

It was reported in numerous Korean media today that the Trump administration plans to impose much higher tariff rates on Korean steel products and...

Douglas Kim

More Discussions on Impacts of Celltrion's KOSPI200 Inclusion

Celltrion Inc (068270 KS) said in a regulatory filing that it will have EGM at 10 AM on Aug 29 to decide whether it will move to KOSPI. Below is...

Sanghyun Park

Asia: Developing Leadership

As all eyes are focused on Europe—the current darling trade—Asia is emerging as a technical leader. The MSCI All-Country Asia Index (below) is...

Vermilion Research

Update on the Put Back Option Clause for IPOs in the Korea Stock Market

This report is an update on the implementation of the "put-back option clause" for IPOs in the Korea Stock Market (for companies applying under the...

Douglas Kim

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52-week Range

Market Cap (USDm)

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Trump Administration Plans to Impose Much Higher Tariff Rates on Korean Steel - Impact on POSCO

It was reported in numerous Korean media today that the Trump administration plans to impose much higher tariff rates on Korean steel products and...

Douglas Kim

More Discussions on Impacts of Celltrion's KOSPI200 Inclusion

Celltrion Inc (068270 KS) said in a regulatory filing that it will have EGM at 10 AM on Aug 29 to decide whether it will move to KOSPI. Below is...

Sanghyun Park

Asia: Developing Leadership

As all eyes are focused on Europe—the current darling trade—Asia is emerging as a technical leader. The MSCI All-Country Asia Index (below) is...

Vermilion Research

Alpha Generation from Share Buybacks in Korea (2017 YTD)

In this report, we have identified 26 stocks in the Korean stock market that have announced share buyback programs so far in 2017. These stocks...

Douglas Kim

Update on the Put Back Option Clause for IPOs in the Korea Stock Market

This report is an update on the implementation of the "put-back option clause" for IPOs in the Korea Stock Market (for companies applying under the...

Douglas Kim