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

Sanghyun Park

Korea / Special Sits, Pairs, Index Rebalancing

Event-Driven

Below I summarized what appears to have happened in regard to Kakao's Sep 15 KOSPI 200 inclusion event. Kakao's KOSPI move news first broke on Apr 14, and since then, its price rose a whopping 52.6% as of Sep 15. Local institutions led the recent buying rally, and importantly and interestingly, they seem to be continuing to scoop up Kakao shares even today when the Kakao's KOSPI 200 inclusion expectation seemed to have started fading away.Alright, let's find out what appears to have happened and what will likely happen from now on.

Below I summarized what appears to have happened in regard to Kakao's Sep 15 KOSPI 200 inclusion event. Kakao's KOSPI move news first broke on Apr 14, and since then, its price rose a whopping 52.6% as of Sep 15. Local institutions led the recent buying rally, and importantly and interestingly, they seem to be continuing to scoop up Kakao shares even today when the Kakao's KOSPI 200 inclusion expectation seemed to have started fading away.Alright, let's find out what appears to have happened and what will likely happen from now on.

Recap on Kakao's Sep 15 KOSPI 200 Inclusion Event

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

Korea Stock Exchange Kospi Index / Technical Analysis

The two-month pullback in Korea KOSPI has created buying opportunities. In fact, this recent weakness is largely confined to auto and financial stocks, masking strength in other segments, such as tech and materials, where bullish inflections are visible.  In this report we highlight a variety of actionable investment themes.

The two-month pullback in Korea KOSPI has created buying opportunities. In fact, this recent weakness is largely confined to auto and financial stocks, masking strength in other segments, such as tech and materials, where bullish inflections are visible.  In this report we highlight a variety of actionable investment themes.

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Bottom-Up

In the midst of North Korea firing missiles and testing for nuclear weapons, people in South Korea are still shopping and living their regular lives. I recently visited <a href="https://www.smartkarma.com/entities/6993" target="_blank" data-smartkarma-citation="entities:6993:1">E Mart Inc (139480 KS)</a>'s new, mega mall called Starfield Goyang, which is located in the northwest portion of Metropolitan Seoul. Starfield Goyang is Emart's third Starfield mall, after Starfield Hanam and Starfield Coex. Starfield Goyang officially opened on August 24th. I visited Starfield Goyang mall on a weekday in the last…

In the midst of North Korea firing missiles and testing for nuclear weapons, people in South Korea are still shopping and living their regular lives. I recently visited E Mart Inc (139480 KS)'s new, mega mall called Starfield Goyang, which is located in the northwest portion of Metropolitan Seoul. Starfield Goyang is Emart's third Starfield mall, after Starfield Hanam and Starfield Coex. Starfield Goyang officially opened on August 24th. I visited Starfield Goyang mall on a weekday in the last…

A Visit to Emart's Starfield Goyang MegaMall

<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

<a href="https://www.smartkarma.com/entities/16029" target="_blank" data-smartkarma-citation="entities:16029:1">Naver Corp (035420 KS)</a>'s founder Lee Hae-Jin tried to sell a small portion of his stake (110,000 shares or 0.3% of shares outstanding) representing 86 billion won on August 21st, but this deal failed to get completed due to lack of demand from institutional investors. This is likely to act as a near-term negative overhang on Naver shares. The block deal price was 763,037 won, a 2.3% discount to the closing price of 781,000 won on August 21st.  At the end of June 2017, the Korea National Pension…

Naver Corp (035420 KS)'s founder Lee Hae-Jin tried to sell a small portion of his stake (110,000 shares or 0.3% of shares outstanding) representing 86 billion won on August 21st, but this deal failed to get completed due to lack of demand from institutional investors. This is likely to act as a near-term negative overhang on Naver shares. The block deal price was 763,037 won, a 2.3% discount to the closing price of 781,000 won on August 21st.  At the end of June 2017, the Korea National Pension…

Naver's Founder Lee Hae-Jin's Block Trade Debacle - Trying to Seek An "Ownerless" Status?

South Korea

Kakao Corp. provides Internet portal services such as news, free e-mail, and leisure information.  The Company also offers cross-platform mobile messaging application that allows users to exchange messages.

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Kakao Corp (035720 KS)

Recap on Kakao's Sep 15 KOSPI 200 Inclusion Event

Below I summarized what appears to have happened in regard to Kakao's Sep 15 KOSPI 200 inclusion event. Kakao's KOSPI move news first broke on Apr...

Sanghyun Park

Pullback Opportunity in South Korea

The two-month pullback in Korea KOSPI has created buying opportunities. In fact, this recent weakness is largely confined to auto and financial...

Vermilion Research

A Visit to Emart's Starfield Goyang MegaMall

In the midst of North Korea firing missiles and testing for nuclear weapons, people in South Korea are still shopping and living their regular...

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

Naver's Founder Lee Hae-Jin's Block Trade Debacle - Trying to Seek An "Ownerless" Status?

Naver Corp (035420 KS)'s founder Lee Hae-Jin tried to sell a small portion of his stake (110,000 shares or 0.3% of shares outstanding) representing...

Douglas Kim

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