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

Sanghyun Park

Korea / Special Sits, Pairs, Index Rebalancing

Event-Driven

Samsung Life Insurance made an interesting investment at a sensitive time. In a regulatory filing after the market closed on last Friday (Nov 11), Samsung Life announced that it agreed to buy ₩290bil (US$250mil) worth of treasury shares (8.36 million shares) in Samsung Securities. As a result, Life's total shareholdings in Samsung Sec will increase to 30.2%, which is the magic number (the 30% rule) to make it a subsidiary under the financial holdco system. On the surface, Life is saying that this decision was made to inject capital in Samsung Sec to boost the brokerage business. But not many people in the market accept what Samsung Life says at face value.

Samsung Life Insurance made an interesting investment at a sensitive time. In a regulatory filing after the market closed on last Friday (Nov 11), Samsung Life announced that it agreed to buy ₩290bil (US$250mil) worth of treasury shares (8.36 million shares) in Samsung Securities. As a result, Life's total shareholdings in Samsung Sec will increase to 30.2%, which is the magic number (the 30% rule) to make it a subsidiary under the financial holdco system. On the surface, Life is saying that this decision was made to inject capital in Samsung Sec to boost the brokerage business. But not many people in the market accept what Samsung Life says at face value.

Focus on Samsung Fire Instead of Samsung Card for Samsung's Financial Holdco Creation

Thematic Investing in Tech and Media, CM Research

Cyrus Mewawalla

Thematic Investing in Tech and Media

Thematic TMT investing

CM Research

CM Research is an independent research house based in London, England. We provide global thematic research in the Technology, Media and Telecoms (TMT) sectors. 

Our focus is on disruptive technologies: how will they unfold; which industries will be impacted; and who will be the ultimate winners and losers. 

Our aim is to help investors predict share prices and corporate executives stay one step ahead of the technology trends that are shaping their industry. 

We research technology investment themes in detail and then feed the results into a scorecard system to quantify the impact of several conflicting themes on individual stocks. 

Recent themes covered include internet TV, the Internet of Things, Big Data, Mobile payments, crowdfunding, artificial intelligence, the cloud, software defined networking and Generation Hashtag.

We cover the top 500 global TMT stocks by market capitalisation and several technology start-ups and pre-IPO companies too. 

In 2015, CM Research analysts outperformed the Bloomberg Benchmark Analyst Index - which measures how good analysts are at predicting stock prices - by 7.1%.

Thematic (Sector/Industry)

As the dust settles after the US presidential election, we look at the medium-term investment implications of a Trump presidency for technology stocks.The biggest benefit to the US tech sector will come from lower tax rates. The biggest risk is trade wars that result in higher tariffs and retaliation against US tech companies. The wildcard is regulation: net neutrality rules – if relaxed – could shift the balance of power from internet companies to telcos.Below we look at five themes emanating from Mr Trump's policies that have a direct impact on the global tech sector: taxation, trade, regulation, cybersecurity and social media.

As the dust settles after the US presidential election, we look at the medium-term investment implications of a Trump presidency for technology stocks.The biggest benefit to the US tech sector will come from lower tax rates. The biggest risk is trade wars that result in higher tariffs and retaliation against US tech companies. The wildcard is regulation: net neutrality rules – if relaxed – could shift the balance of power from internet companies to telcos.Below we look at five themes emanating from Mr Trump's policies that have a direct impact on the global tech sector: taxation, trade, regulation, cybersecurity and social media.

Equity Capital Markets

Samsung Biologics   / Equity Capital Markets

Samsung BioLogics closed at ₩144,000 with 6.67% gain on its first trading day. It started with a relatively weak sentiment at the opening price of ₩135,000, slightly lower than the IPO price of ₩136,000. The price kept falling to ₩125,500 in the first hour. However, it quickly regained the loss and continued to rise as a large number of (presumably) foreign investors started placing buying orders (mainly through Citi) around 10 AM. Undoubtedly, this was a very solid debut given the valuation…

Samsung BioLogics closed at ₩144,000 with 6.67% gain on its first trading day. It started with a relatively weak sentiment at the opening price of ₩135,000, slightly lower than the IPO price of ₩136,000. The price kept falling to ₩125,500 in the first hour. However, it quickly regained the loss and continued to rise as a large number of (presumably) foreign investors started placing buying orders (mainly through Citi) around 10 AM. Undoubtedly, this was a very solid debut given the valuation…

Recap of Samsung BioLogics' First Trading Day - Foreign Institutions Net Purchased 1M Shares

Asia and Global Semiconductor and Tech Research

Andrew Lu

<h2>Summary</h2><ul>
<li>
Raising the import tariffs on technology products: The new Trump government might raise the import tariffs on technology products to stop China dump their products. This should lead the part of the Apple assembly business back to the US. US solar and electric/self-driving automotive industry will be protected.  Consumers will see the cost increase of buying imported technology products, but the action might also drive China's counter-tariff trade war against the US in future. 
</li>
<li>
Cut taxes to…</li>
</ul>

Summary

Raising the import tariffs on technology products: The new Trump government might raise the import tariffs on technology products to stop China dump their products. This should lead the part of the Apple assembly business back to the US. US solar and electric/self-driving automotive industry will be protected.  Consumers will see the cost increase of buying imported technology products, but the action might also drive China's counter-tariff trade war against the US in future. 


Cut taxes to…


How Will Trump Shape up the Global Technology Industry in Next Four Years?

As reported by Barron's on Nov 5 ("<a href="http://www.barrons.com/articles/samsung-biologics-ipo-too-expensive-1478318942" target="_blank">Samsung BioLogics IPO: Too Expensive</a>"), there are still some skeptical views on BioLogics' IPO valuation. Barron's is arguing that Lonza is not an adequate valuation peer for Samsung BioLogics because Lonza gets a tiny portion of its sales from contract manufacturing. Also, Barron's is pointing that Bioepis' biosim drugs will have to be sold at much higher (about 30 to 40%) than a 15% wholesaler discount to the original biologic drugs. This would certainly hurt margins for Bioepis and also BioLogics (which will be mainly responsible for Bioepis' biosims). Personally, I am not a big fan of Samsung BioLogics. I generally agree that the company's IPO valuation is somewhat inflated. Nonetheless, I should point out some blunders in Barron's skeptical argument on BioLogics.

As reported by Barron's on Nov 5 ("Samsung BioLogics IPO: Too Expensive"), there are still some skeptical views on BioLogics' IPO valuation. Barron's is arguing that Lonza is not an adequate valuation peer for Samsung BioLogics because Lonza gets a tiny portion of its sales from contract manufacturing. Also, Barron's is pointing that Bioepis' biosim drugs will have to be sold at much higher (about 30 to 40%) than a 15% wholesaler discount to the original biologic drugs. This would certainly hurt margins for Bioepis and also BioLogics (which will be mainly responsible for Bioepis' biosims). Personally, I am not a big fan of Samsung BioLogics. I generally agree that the company's IPO valuation is somewhat inflated. Nonetheless, I should point out some blunders in Barron's skeptical argument on BioLogics.

Samsung BioLogics' First Trading Day - Blunders in Barron's Argument & Price Prediction

South Korea

Samsung Electronics Co., Ltd. manufactures a wide range of consumer and industrial electronic equipment and products such as semiconductors, personal computers, peripherals, monitors, televisions, and home appliances including air conditioners and microwave ovens. The Company also produces Internet access network systems and telecommunications equipment including mobile phones.

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Samsung Electronics (SMSN LI)

Focus on Samsung Fire Instead of Samsung Card for Samsung's Financial Holdco Creation

Samsung Life Insurance made an interesting investment at a sensitive time. In a regulatory filing after the market closed on last Friday (Nov 11),...

Sanghyun Park

What Trump Means for Tech

As the dust settles after the US presidential election, we look at the medium-term investment implications of a Trump presidency for technology...

CM Research

Recap of Samsung BioLogics' First Trading Day - Foreign Institutions Net Purchased 1M Shares

Samsung BioLogics closed at ₩144,000 with 6.67% gain on its first trading day. It started with a relatively weak sentiment at the opening price of...

Sanghyun Park

How Will Trump Shape up the Global Technology Industry in Next Four Years?

Summary Raising the import tariffs on technology products: The new Trump government might raise the import tariffs on technology products to stop...

Andrew Lu

Samsung BioLogics' First Trading Day - Blunders in Barron's Argument & Price Prediction

As reported by Barron's on Nov 5 ("Samsung BioLogics IPO: Too Expensive"), there are still some skeptical views on BioLogics' IPO valuation....

Sanghyun Park

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