AlphaSituations-Event/Catalyst Driven Research, AlphaSituations

Robert Sassoon

AlphaSituations-Event/Catalyst Driven Research

AlphaSituations

Since its establishment, AlphaSituations has delivered a track record of outperformance with a hit rate of winners of more than 70% of its portfolio of ideas generating annualized average returns of 20%. In January 2022, AlphaSituations was contracted by Water Tower Research, an investor engagement and stakeholder communication platform to provide coverage of Special Situations

Event-Driven

<ul>
<li>Microsoft's all cash acquisition of video game publisher Activision Blizzard is the biggest in the former's history and the largest ever transaction in the video gaming sector.</li>
<li>While intense regulatory scrutiny of the deal is expected, the arguments favoring high odds for eventual deal approval are reasonable. </li>
<li>We believe the 17% merger spread offers the prospect of  double-digits annualized return over the next 12 to 18 months.</li>
</ul>


Microsoft's all cash acquisition of video game publisher Activision Blizzard is the biggest in the former's history and the largest ever transaction in the video gaming sector.
While intense regulatory scrutiny of the deal is expected, the arguments favoring high odds for eventual deal approval are reasonable. 
We believe the 17% merger spread offers the prospect of  double-digits annualized return over the next 12 to 18 months.


MergerTalk: Microsoft/Activision Blizzard-Why We Think This Transaction May Not Be Such A Gamble

Forensic Analyst

Jason Yap, CFA

Equity Bottom-Up

<ul>
<li>Singapore government introduced a moratorium on new data centres in 2019</li>
<li>As result, incumbent data centre REITs recalibrated their portfolio strategy including to pursue DPU and NAV growth through accretive overseas acquisitions </li>
<li>In Q2 2022, the moratorium is expected to be lifted with conditional approvals for applicants that meet certain sustainability requirements. We discuss the implications for <a href="https://www.smartkarma.com/entities/keppel-dc-reit" target="_blank" data-smartkarma-citation="entities:85:1" rel="noopener">Keppel DC REIT (KDCREIT SP)</a> </li>
</ul>


Singapore government introduced a moratorium on new data centres in 2019
As result, incumbent data centre REITs recalibrated their portfolio strategy including to pursue DPU and NAV growth through accretive overseas acquisitions 
In Q2 2022, the moratorium is expected to be lifted with conditional approvals for applicants that meet certain sustainability requirements. We discuss the implications for Keppel DC REIT (KDCREIT SP) 


Keppel DC REIT (KDCREIT SP) - Imminent Lifting of SG Data Centre Moratorium and Its Implications

US/Europe Event-Driven Analyst

John DeMasi

<ul>
<li>Microsoft’s largest-ever acquisition provides boost for cloud gaming and metaverse ambitions.</li>
<li>Deal comes as Activision Blizzard’s been mired in gender pay disparity and sexual harassment storm.</li>
<li>Controversial CEO Bobby Kotick to continue in his role as head of Activision Blizzard, though WSJ says otherwise.</li>
</ul>


Microsoft’s largest-ever acquisition provides boost for cloud gaming and metaverse ambitions.
Deal comes as Activision Blizzard’s been mired in gender pay disparity and sexual harassment storm.
Controversial CEO Bobby Kotick to continue in his role as head of Activision Blizzard, though WSJ says otherwise.


Microsoft Got Game! Plans to Buy Activision Blizzard for $95/Share or $68.7 Billion

China and US Equity Analyst

Roger Xie

Thematic (Sector/Industry)

<ul>
<li>Trial version e-CNY digital wallet has been launched on iOS and Android app store as the country's central bank steps up its push to develop its own digital currency.</li>
<li>The initial usage shows e-CNY digital wallet is best paired with bank-app to fulfill KYC requirement to open account; standalone digital wallet has difficulty to verify identification.</li>
<li>The rising of China Digital Currency/Electronic Payment system could be disruptive to financial system. We believe it will lead the changes in payment, risk control, user data and credit history. </li>
</ul>


Trial version e-CNY digital wallet has been launched on iOS and Android app store as the country's central bank steps up its push to develop its own digital currency.
The initial usage shows e-CNY digital wallet is best paired with bank-app to fulfill KYC requirement to open account; standalone digital wallet has difficulty to verify identification.
The rising of China Digital Currency/Electronic Payment system could be disruptive to financial system. We believe it will lead the changes in payment, risk control, user data and credit history. 


China Digital Currency: E-CNY Wallet App Launched Before Winter Olympics

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>The SEC has finalised the Holding Foreign Companies Accountable Act rules. Under the current timeframe, the SEC may force the delisting of foreign companies in three years if in contravention.</li>
<li>Amid <a href="https://www.smartkarma.com/entities/didi-chuxing-inc" target="_blank" data-smartkarma-citation="entities:27467:1" rel="noopener">DiDi Global (DIDI US)</a>'s intention to delist from the US, the CSRC refutes it is pushing for VIEs to drop their listings in the United States.</li>
<li>Expect continued volatility as the ~248 US-listed China plays seek to avoid delisting if they don’t comply with auditing rules.</li>
</ul>


The SEC has finalised the Holding Foreign Companies Accountable Act rules. Under the current timeframe, the SEC may force the delisting of foreign companies in three years if in contravention.
Amid DiDi Global (DIDI US)'s intention to delist from the US, the CSRC refutes it is pushing for VIEs to drop their listings in the United States.
Expect continued volatility as the ~248 US-listed China plays seek to avoid delisting if they don’t comply with auditing rules.


Delisting Chinese ADRs: High Foreign-Holding, With No Fixed Abode, Most At Risk

China

Tencent Holdings Limited operates as an investment holding company. The Company, through its subsidiaries, provides Internet and mobile value-added services (VAS), online advertising, and e-commerce transactions. Tencent Holdings offers services to users worldwide.

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Tencent Holdings (ADR) (TCEHY US)

MergerTalk: Microsoft/Activision Blizzard-Why We Think This Transaction May Not Be Such A Gamble

Why we think that the prospect of earning double-digits annualized returns from this transaction within the next 18 months might not be such a gamble

Robert Sassoon

Keppel DC REIT (KDCREIT SP) - Imminent Lifting of SG Data Centre Moratorium and Its Implications

Singapore introduced a moratorium on new data centres which caused incumbents to recalibrate their strategy. With the moratorium expected to be...

Jason Yap, CFA

China Digital Currency: E-CNY Wallet App Launched Before Winter Olympics

Trial version e-CNY digital wallet has been launched on iOS and Android app store as the country's central bank steps up its push to develop its...

Roger Xie

Delisting Chinese ADRs: High Foreign-Holding, With No Fixed Abode, Most At Risk

This does not strike me as the time to be bargain hunting. Not when there remains confusion as to how and when delistings will unfold. The focus...

David Blennerhassett

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52-week Range

Market Cap (USDm)

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MergerTalk: Microsoft/Activision Blizzard-Why We Think This Transaction May Not Be Such A Gamble

Why we think that the prospect of earning double-digits annualized returns from this transaction within the next 18 months might not be such a gamble

Robert Sassoon

Keppel DC REIT (KDCREIT SP) - Imminent Lifting of SG Data Centre Moratorium and Its Implications

Singapore introduced a moratorium on new data centres which caused incumbents to recalibrate their strategy. With the moratorium expected to be...

Jason Yap, CFA

Microsoft Got Game! Plans to Buy Activision Blizzard for $95/Share or $68.7 Billion

Microsoft 'ain't' playing games. Its planned buy of Activision Blizzard will get regulators' dander up, but the devil's in the detail, and this...

John DeMasi

China Digital Currency: E-CNY Wallet App Launched Before Winter Olympics

Trial version e-CNY digital wallet has been launched on iOS and Android app store as the country's central bank steps up its push to develop its...

Roger Xie

Delisting Chinese ADRs: High Foreign-Holding, With No Fixed Abode, Most At Risk

This does not strike me as the time to be bargain hunting. Not when there remains confusion as to how and when delistings will unfold. The focus...

David Blennerhassett