Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Bottom-Up

Lotte Tour Development Co, Ltd. / Equity Bottom-Up

<p>The sharp government crackdown on the Macau casinos is a boon on the Korean casinos. Because the government crackdown on the Macau casinos could last longer (next 6-12 months, for example), we believe that this is likely to lead to benefit the major casino operators of other major Asian countries such as in Korea, including companies such as Paradise and Lotte Tour Development. </p><p><em>At this point, the great unknown regarding the Macau casino industry is how aggressively the Chinese government will try to impose on how the major casinos in Macau operate.</em> We highlighted four major factors that the CCP could aggressively intrude on them including dividends, BOD representation, ownership, and expansion of non-casino businesses. </p><p>Although there have been some increased regulatory scrutiny by the CCP on the Macau casinos in the past, this new crackdown in the past two weeks is probably one of the most restrictive and problematic ever. </p><p><strong>What is different this time around is timing.</strong> Unlike the previous crackdowns, this crackdown has involved not just the gambling sector but also other major sectors including education, technology, and entertainment.</p><ul>
<li>At its core, it deals with the fundamental issue of capitalism vs. communism, the details of which is beyond this article.</li>
<li>For the investor that actively trade the Asian casinos, it is very difficult to "buy the dip" since if indeed the CCP becomes major shareholders of these Macau casinos (including BOD representation), these companies would not be acting in the best interests of their shareholders and would not be maximizing their capital efficiency.</li>
<li>Rather, they would take directives from the CCP and minority shareholders would be screwed. </li>
</ul>

The sharp government crackdown on the Macau casinos is a boon on the Korean casinos. Because the government crackdown on the Macau casinos could last longer (next 6-12 months, for example), we believe that this is likely to lead to benefit the major casino operators of other major Asian countries such as in Korea, including companies such as Paradise and Lotte Tour Development. At this point, the great unknown regarding the Macau casino industry is how aggressively the Chinese government will try to impose on how the major casinos in Macau operate. We highlighted four major factors that the CCP could aggressively intrude on them including dividends, BOD representation, ownership, and expansion of non-casino businesses. Although there have been some increased regulatory scrutiny by the CCP on the Macau casinos in the past, this new crackdown in the past two weeks is probably one of the most restrictive and problematic ever. What is different this time around is timing. Unlike the previous crackdowns, this crackdown has involved not just the gambling sector but also other major sectors including education, technology, and entertainment.
At its core, it deals with the fundamental issue of capitalism vs. communism, the details of which is beyond this article.
For the investor that actively trade the Asian casinos, it is very difficult to "buy the dip" since if indeed the CCP becomes major shareholders of these Macau casinos (including BOD representation), these companies would not be acting in the best interests of their shareholders and would not be maximizing their capital efficiency.
Rather, they would take directives from the CCP and minority shareholders would be screwed. 


A Crackdown on the Macau Casinos Is a Boon on the Korean Casinos

Event-Driven

<div class="content-highlight">
<p>The "K-Stop movement" made its first real move on <a href="https://www.smartkarma.com/entities/hlb-inc" target="_blank" data-smartkarma-citation="entities:16969:1" rel="noopener">HLB Inc (028300 KS) </a>on July 15th. The K-Stop movement refers to "Korean Game Stop movement," where many Korean retail investors have gathered together to actively protest and trade against the institutional investors that have put short positions on various Korean stocks. There are lots of interesting developments with the K-Stop movement so we will update on these key issues in this insight. </p>
<p><strong>Korea Stock Investors Association (한국주식투자자연합회) (KSIA) is the main sponsoring entity of this K-Stop Movement. On 1 August,<a href="https://www.news1.kr/articles/?4388150" target="_blank" rel="noopener"> KSIA</a> mentioned that it will once again pool the resources of the retail investors to target a specific company to buy on August 10th.</strong> The date was originally scheduled on August 15th but they decided to use August 10th instead due to the latter date being on a Sunday. </p>
</div><ul>
<li>In KOSDAQ, the top two potential stocks that KSIA may target on August 10th include <a href="https://www.smartkarma.com/entities/kmw-co-ltd" target="_blank" data-smartkarma-citation="entities:2834:1" rel="noopener">KMW Co Ltd (032500 KS)</a> and <a href="https://www.smartkarma.com/entities/seegene-inc" target="_blank" data-smartkarma-citation="entities:11483:1" rel="noopener">Seegene Inc (096530 KS)</a>. </li>
<li>In KOSPI, the top three potential stocks that KSIA may target on August 10th include <a href="https://www.smartkarma.com/entities/lotte-tour-development-co-ltd" target="_blank" data-smartkarma-citation="entities:5526:1" rel="noopener">Lotte Tour Development Co, Ltd. (032350 KS)</a>, <a href="https://www.smartkarma.com/entities/lg-display-co-ltd" target="_blank" data-smartkarma-citation="entities:7145:1" rel="noopener">LG Display (034220 KS)</a>, and <a href="https://www.smartkarma.com/entities/shinpoong-pharmaceutical-co-ltd" target="_blank" data-smartkarma-citation="entities:7296:1" rel="noopener">Shinpoong Pharmaceutical (019170 KS)</a>.</li>
</ul>


The "K-Stop movement" made its first real move on HLB Inc (028300 KS) on July 15th. The K-Stop movement refers to "Korean Game Stop movement," where many Korean retail investors have gathered together to actively protest and trade against the institutional investors that have put short positions on various Korean stocks. There are lots of interesting developments with the K-Stop movement so we will update on these key issues in this insight. 
Korea Stock Investors Association (한국주식투자자연합회) (KSIA) is the main sponsoring entity of this K-Stop Movement. On 1 August, KSIA mentioned that it will once again pool the resources of the retail investors to target a specific company to buy on August 10th. The date was originally scheduled on August 15th but they decided to use August 10th instead due to the latter date being on a Sunday. 

In KOSDAQ, the top two potential stocks that KSIA may target on August 10th include KMW Co Ltd (032500 KS) and Seegene Inc (096530 KS). 
In KOSPI, the top three potential stocks that KSIA may target on August 10th include Lotte Tour Development Co, Ltd. (032350 KS), LG Display (034220 KS), and Shinpoong Pharmaceutical (019170 KS).


K-Stop Movement: Round 2 on August 10th - What Are the Targets?

<p>In this insight, we discuss the top 50 most shorted stocks in KOSPI and KOSDAQ, respectively in terms of Short Sale Volume/Free Float Volume, respectively. The KRX provides updated short sale data in terms of short sale volume amount/market cap. However, it does not provide the data in terms of free float basis which is probably a better figure to use when analyzing the short sale data. </p><p>We divided the tables for the KOSPI and KOSDAQ short sale volume into two parts. </p><ul>
<li>First, the 50 stocks are ranked in order of the short sale volume/free float volume ratio.</li>
<li>Second, because many institutional investors deal with larger market cap companies, we included only those companies with more than 1 trillion won in market cap. We also included data on the changes in the foreign ownership YTD. </li>
</ul>

In this insight, we discuss the top 50 most shorted stocks in KOSPI and KOSDAQ, respectively in terms of Short Sale Volume/Free Float Volume, respectively. The KRX provides updated short sale data in terms of short sale volume amount/market cap. However, it does not provide the data in terms of free float basis which is probably a better figure to use when analyzing the short sale data. We divided the tables for the KOSPI and KOSDAQ short sale volume into two parts. 
First, the 50 stocks are ranked in order of the short sale volume/free float volume ratio.
Second, because many institutional investors deal with larger market cap companies, we included only those companies with more than 1 trillion won in market cap. We also included data on the changes in the foreign ownership YTD. 


Top 50 Most Shorted Stocks in KOSPI & KOSDAQ (Short Sale Vol/Free Float Vol)

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

Sanghyun Park

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

Lotte Tour Development Co, Ltd. / Event-Driven

<p>Those with a high level of unconverted CB balance would be among the early target groups by short sellers from May 3 in Korea.</p><p>Among the Short 350 (KOSPI 200 and KOSDAQ 150), five names pop up as a heavy CB carrier with the conversion in progress.</p><table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
<col width="100">
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr>
<td style="width: 210px;" data-sheets-value='{"1":2,"2":"Name"}'>Name</td>
<td style="text-align: right; width: 95px;" data-sheets-value='{"1":2,"2":"Ticker"}'>Ticker</td>
<td style="text-align: right; width: 126.667px;" data-sheets-value='{"1":2,"2":"CB balance (₩B)"}'>CB balance at FY2020 yearend (₩B)</td>
<td style="text-align: right; width: 113.333px;" data-sheets-value='{"1":2,"2":"Time to expiration (days)"}'>Time to expiration (days)</td>
<td style="text-align: right; width: 95.8333px;" data-sheets-value='{"1":2,"2":"Conversion"}'>Conversion</td>
</tr>
<tr>
<td style="width: 210px;" data-sheets-value='{"1":2,"2":"LG Display Co Ltd"}'>LG Display</td>
<td style="text-align: right; width: 95px;" data-sheets-value='{"1":2,"2":"034220"}'>034220</td>
<td style="text-align: right; width: 126.667px;" data-sheets-value='{"1":3,"3":813.4}' data-sheets-numberformat='{"1":2,"2":"#,##0.0","3":1}'>813.4</td>
<td style="text-align: right; width: 113.333px;" data-sheets-value='{"1":3,"3":1209}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>1,209</td>
<td style="text-align: right; width: 95.8333px;" data-sheets-value='{"1":3,"3":19845}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0","3":1}'>₩19,845</td>
</tr>
<tr>
<td style="width: 210px;" data-sheets-value='{"1":2,"2":"Hwaseung Enterprise Co Ltd"}'>Hwaseung Enterprise</td>
<td style="text-align: right; width: 95px;" data-sheets-value='{"1":2,"2":"241590"}'>241590</td>
<td style="text-align: right; width: 126.667px;" data-sheets-value='{"1":3,"3":150}' data-sheets-numberformat='{"1":2,"2":"#,##0.0","3":1}'>150.0</td>
<td style="text-align: right; width: 113.333px;" data-sheets-value='{"1":3,"3":10529}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>10,529</td>
<td style="text-align: right; width: 95.8333px;" data-sheets-value='{"1":3,"3":17542}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0","3":1}'>₩17,542</td>
</tr>
<tr>
<td style="width: 210px;" data-sheets-value='{"1":2,"2":"GS Engineering &amp; Construction Corp"}'>GS E&amp;C</td>
<td style="text-align: right; width: 95px;" data-sheets-value='{"1":2,"2":"006360"}'>006360</td>
<td style="text-align: right; width: 126.667px;" data-sheets-value='{"1":3,"3":77.8}' data-sheets-numberformat='{"1":2,"2":"#,##0.0","3":1}'>77.8</td>
<td style="text-align: right; width: 113.333px;" data-sheets-value='{"1":3,"3":84}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>84</td>
<td style="text-align: right; width: 95.8333px;" data-sheets-value='{"1":3,"3":30239}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0","3":1}'>₩30,239</td>
</tr>
<tr>
<td style="width: 210px;" data-sheets-value='{"1":2,"2":"KIWOOM Securities Co., Ltd."}'>KIWOOM Securities</td>
<td style="text-align: right; width: 95px;" data-sheets-value='{"1":2,"2":"039490"}'>039490</td>
<td style="text-align: right; width: 126.667px;" data-sheets-value='{"1":3,"3":127.1}' data-sheets-numberformat='{"1":2,"2":"#,##0.0","3":1}'>127.1</td>
<td style="text-align: right; width: 113.333px;" data-sheets-value='{"1":3,"3":423}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>423</td>
<td style="text-align: right; width: 95.8333px;" data-sheets-value='{"1":3,"3":105247}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0","3":1}'>₩105,247</td>
</tr>
<tr>
<td style="width: 210px;" data-sheets-value='{"1":2,"2":"Lotte Tour Development Co., Ltd."}'>Lotte Tour Dev</td>
<td style="text-align: right; width: 95px;" data-sheets-value='{"1":2,"2":"032350"}'>032350</td>
<td style="text-align: right; width: 126.667px;" data-sheets-value='{"1":3,"3":71.04}' data-sheets-numberformat='{"1":2,"2":"#,##0.0","3":1}'>71.0</td>
<td style="text-align: right; width: 113.333px;" data-sheets-value='{"1":3,"3":852}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>852</td>
<td style="text-align: right; width: 95.8333px;" data-sheets-value='{"1":3,"3":13850}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0","3":1}'>₩13,850</td>
</tr>
<tr><td colspan="5" rowspan="1" style="width: 724.167px;" data-sheets-value='{"1":2,"2":"Source: DART"}'>Source: DART</td></tr>
</tbody>
</table><p>All of them enjoy a substantial gain in price, ranging from 2.90% to 52.12%. We should see a strong incentive in conversion, potentially resulting in an active shorting inflow.</p><p>CB balance (as of FY2020 yearend) * Delta (σ, 21 TD) should estimate potential shorting inflow, suggesting LG Display sitting at the top with ₩623.5B.</p><p>As a % of MC, Hwaseung Ent leads the pack at 13.15%.</p><table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
<col width="100">
<col width="100">
<col width="100">
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr>
<td style="width: 124.167px;" data-sheets-value='{"1":2,"2":"Name"}'>Name</td>
<td style="text-align: right; width: 75px;" data-sheets-value='{"1":2,"2":"Ticker"}'>Ticker</td>
<td style="text-align: right; width: 76.6667px;" data-sheets-value='{"1":2,"2":"Price"}'>Price</td>
<td style="text-align: right; width: 96.6667px;" data-sheets-value='{"1":2,"2":"% to conversion"}'>Price gain from the conversion</td>
<td style="text-align: right; width: 75px;" data-sheets-value='{"1":2,"2":"Delta"}'>Delta (σ, 21 TD)</td>
<td style="text-align: right; width: 75.8333px;" data-sheets-value='{"1":2,"2":"CB balance*Delta (₩B)"}'>CB balance * Delta (₩B)</td>
<td style="text-align: right; width: 74.1667px;" data-sheets-value='{"1":2,"2":"% of MC"}'>% of MC</td>
</tr>
<tr>
<td style="width: 124.167px;" data-sheets-value='{"1":2,"2":"LG Display Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>LG Display</td>
<td style="text-align: right; width: 75px;" data-sheets-value='{"1":2,"2":"034220"}' data-sheets-formula='="034220"'>034220</td>
<td style="text-align: right; width: 76.6667px;" data-sheets-value='{"1":3,"3":24900}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0","3":1}' data-sheets-formula='=googlefinance(R[0]C[-1], "price")'>₩24,900</td>
<td style="text-align: right; width: 96.6667px;" data-sheets-value='{"1":3,"3":0.254724111866969}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R[0]C[-1]-R[0]C[5])/R[0]C[5]">25.47%</td>
<td style="text-align: right; width: 75px;" data-sheets-value='{"1":3,"3":0.7665}' data-sheets-numberformat='{"1":2,"2":"#,##0.0000","3":1}'>0.7665</td>
<td style="text-align: right; width: 75.8333px;" data-sheets-value='{"1":3,"3":623.4711}' data-sheets-numberformat='{"1":2,"2":"#,##0.0","3":1}' data-sheets-formula="=R[0]C[2]*R[0]C[-1]"><strong>623.5</strong></td>
<td style="text-align: right; width: 74.1667px;" data-sheets-value='{"1":3,"3":0.06997736544260075}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula='=R[0]C[-1]/(googlefinance(R[0]C[-5], "marketcap")/1000000000)'><strong>7.00%</strong></td>
</tr>
<tr>
<td style="width: 124.167px;" data-sheets-value='{"1":2,"2":"Hwaseung Enterprise Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>Hwaseung Enterprise</td>
<td style="text-align: right; width: 75px;" data-sheets-value='{"1":2,"2":"241590"}' data-sheets-formula='="241590"'>241590</td>
<td style="text-align: right; width: 76.6667px;" data-sheets-value='{"1":3,"3":18000}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0","3":1}' data-sheets-formula='=googlefinance(R[0]C[-1], "price")'>₩18,000</td>
<td style="text-align: right; width: 96.6667px;" data-sheets-value='{"1":3,"3":0.02610876752935811}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R[0]C[-1]-R[0]C[5])/R[0]C[5]">2.61%</td>
<td style="text-align: right; width: 75px;" data-sheets-value='{"1":3,"3":0.9556}' data-sheets-numberformat='{"1":2,"2":"#,##0.0000","3":1}'>0.9556</td>
<td style="text-align: right; width: 75.8333px;" data-sheets-value='{"1":3,"3":143.34}' data-sheets-numberformat='{"1":2,"2":"#,##0.0","3":1}' data-sheets-formula="=R[0]C[2]*R[0]C[-1]"><strong>143.3</strong></td>
<td style="text-align: right; width: 74.1667px;" data-sheets-value='{"1":3,"3":0.13152657984811297}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula='=R[0]C[-1]/(googlefinance(R[0]C[-5], "marketcap")/1000000000)'><strong>13.15%</strong></td>
</tr>
<tr>
<td style="width: 124.167px;" data-sheets-value='{"1":2,"2":"GS Engineering &amp; Construction Corp"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>GS E&amp;C</td>
<td style="text-align: right; width: 75px;" data-sheets-value='{"1":2,"2":"006360"}' data-sheets-formula='="006360"'>006360</td>
<td style="text-align: right; width: 76.6667px;" data-sheets-value='{"1":3,"3":46000}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0","3":1}' data-sheets-formula='=googlefinance(R[0]C[-1], "price")'>₩46,000</td>
<td style="text-align: right; width: 96.6667px;" data-sheets-value='{"1":3,"3":0.5212143258705645}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R[0]C[-1]-R[0]C[5])/R[0]C[5]">52.12%</td>
<td style="text-align: right; width: 75px;" data-sheets-value='{"1":3,"3":0.9874}' data-sheets-numberformat='{"1":2,"2":"#,##0.0000","3":1}'>0.9874</td>
<td style="text-align: right; width: 75.8333px;" data-sheets-value='{"1":3,"3":76.81972}' data-sheets-numberformat='{"1":2,"2":"#,##0.0","3":1}' data-sheets-formula="=R[0]C[2]*R[0]C[-1]"><strong>76.8</strong></td>
<td style="text-align: right; width: 74.1667px;" data-sheets-value='{"1":3,"3":0.01953417848061996}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula='=R[0]C[-1]/(googlefinance(R[0]C[-5], "marketcap")/1000000000)'><strong>1.95%</strong></td>
</tr>
<tr>
<td style="width: 124.167px;" data-sheets-value='{"1":2,"2":"KIWOOM Securities Co., Ltd."}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>KIWOOM Securities</td>
<td style="text-align: right; width: 75px;" data-sheets-value='{"1":2,"2":"039490"}' data-sheets-formula='="039490"'>039490</td>
<td style="text-align: right; width: 76.6667px;" data-sheets-value='{"1":3,"3":135000}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0","3":1}' data-sheets-formula='=googlefinance(R[0]C[-1], "price")'>₩135,000</td>
<td style="text-align: right; width: 96.6667px;" data-sheets-value='{"1":3,"3":0.2826968939732249}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R[0]C[-1]-R[0]C[5])/R[0]C[5]">28.27%</td>
<td style="text-align: right; width: 75px;" data-sheets-value='{"1":3,"3":0.8001}' data-sheets-numberformat='{"1":2,"2":"#,##0.0000","3":1}'>0.8001</td>
<td style="text-align: right; width: 75.8333px;" data-sheets-value='{"1":3,"3":101.69271}' data-sheets-numberformat='{"1":2,"2":"#,##0.0","3":1}' data-sheets-formula="=R[0]C[2]*R[0]C[-1]"><strong>101.7</strong></td>
<td style="text-align: right; width: 74.1667px;" data-sheets-value='{"1":3,"3":0.02893417796460866}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula='=R[0]C[-1]/(googlefinance(R[0]C[-5], "marketcap")/1000000000)'><strong>2.89%</strong></td>
</tr>
<tr>
<td style="width: 124.167px;" data-sheets-value='{"1":2,"2":"Lotte Tour Development Co., Ltd."}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>Lotte Tour Dev</td>
<td style="text-align: right; width: 75px;" data-sheets-value='{"1":2,"2":"032350"}' data-sheets-formula='="032350"'>032350</td>
<td style="text-align: right; width: 76.6667px;" data-sheets-value='{"1":3,"3":18100}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0","3":1}' data-sheets-formula='=googlefinance(R[0]C[-1], "price")'>₩18,100</td>
<td style="text-align: right; width: 96.6667px;" data-sheets-value='{"1":3,"3":0.30685920577617326}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R[0]C[-1]-R[0]C[5])/R[0]C[5]">30.69%</td>
<td style="text-align: right; width: 75px;" data-sheets-value='{"1":3,"3":0.7877}' data-sheets-numberformat='{"1":2,"2":"#,##0.0000","3":1}'>0.7877</td>
<td style="text-align: right; width: 75.8333px;" data-sheets-value='{"1":3,"3":55.958208}' data-sheets-numberformat='{"1":2,"2":"#,##0.0","3":1}' data-sheets-formula="=R[0]C[2]*R[0]C[-1]"><strong>56.0</strong></td>
<td style="text-align: right; width: 74.1667px;" data-sheets-value='{"1":3,"3":0.04462769831973416}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula='=R[0]C[-1]/(googlefinance(R[0]C[-5], "marketcap")/1000000000)'><strong>4.46%</strong></td>
</tr>
<tr><td colspan="7" rowspan="1" style="width: 722.5px;" data-sheets-value='{"1":2,"2":"Source: DART"}'>Source: DART</td></tr>
</tbody>
</table>

Those with a high level of unconverted CB balance would be among the early target groups by short sellers from May 3 in Korea.Among the Short 350 (KOSPI 200 and KOSDAQ 150), five names pop up as a heavy CB carrier with the conversion in progress.









Name
Ticker
CB balance at FY2020 yearend (₩B)
Time to expiration (days)
Conversion


LG Display
034220
813.4
1,209
₩19,845


Hwaseung Enterprise
241590
150.0
10,529
₩17,542


GS E&amp;C
006360
77.8
84
₩30,239


KIWOOM Securities
039490
127.1
423
₩105,247


Lotte Tour Dev
032350
71.0
852
₩13,850

Source: DART

All of them enjoy a substantial gain in price, ranging from 2.90% to 52.12%. We should see a strong incentive in conversion, potentially resulting in an active shorting inflow.CB balance (as of FY2020 yearend) * Delta (σ, 21 TD) should estimate potential shorting inflow, suggesting LG Display sitting at the top with ₩623.5B.As a % of MC, Hwaseung Ent leads the pack at 13.15%.











Name
Ticker
Price
Price gain from the conversion
Delta (σ, 21 TD)
CB balance * Delta (₩B)
% of MC


LG Display
034220
₩24,900
25.47%
0.7665
623.5
7.00%


Hwaseung Enterprise
241590
₩18,000
2.61%
0.9556
143.3
13.15%


GS E&amp;C
006360
₩46,000
52.12%
0.9874
76.8
1.95%


KIWOOM Securities
039490
₩135,000
28.27%
0.8001
101.7
2.89%


Lotte Tour Dev
032350
₩18,100
30.69%
0.7877
56.0
4.46%

Source: DART



CB Balance X Delta (σ, 21 TD) Based Potential Shorting Inflow Among Korea Short 350

Cross Asset Strategy

<div class="content-highlight"><p><a href="https://www.news1.kr/articles/?4201835" target="_blank" rel="noopener">Korea Financial Services Commission (FSC)</a> announced after the market close today that there will be a PARTIAL end of the ban on short selling of stocks starting on May 3rd. This will not be applied on the entire market. Rather, this <strong>partial end of the ban on short selling of stocks will only apply for KOSPI 200 and KOSDAQ 150 included stocks</strong> (350 stocks in total) and <strong>will not apply</strong> for the remaining 2,037 stocks in the Korean stock market.</p></div>

Korea Financial Services Commission (FSC) announced after the market close today that there will be a PARTIAL end of the ban on short selling of stocks starting on May 3rd. This will not be applied on the entire market. Rather, this partial end of the ban on short selling of stocks will only apply for KOSPI 200 and KOSDAQ 150 included stocks (350 stocks in total) and will not apply for the remaining 2,037 stocks in the Korean stock market.

PARTIAL END of Ban on Short Selling of Stocks in Korea

South Korea

Lotte Tour Development Co., Ltd. provides various tour package service. The Company franchises travel agencies, offers home-based travel businesses, and provides leisure-travel information.  The Company also engages in property development and building management and operates duty-free shop business.

Lotte Tour Development Co, Ltd. (032350 KS)

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Lotte Tour Development Co, Ltd. (032350 KS)

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