In today’s briefing:
- Mitra Adiperkasa (MAPI IJ) – Reasons to Be Cheerful
- Shanghai/Shenzhen Northbound Connect: Weekly Moves (27 May 2022)
- Latest Memo From Howard Marks: Bull Market Rhymes
- Voss Capital Q1 2022 Letter To Partners
Mitra Adiperkasa (MAPI IJ) – Reasons to Be Cheerful
- Mitra Adiperkasa‘s recent 1Q2022 results and a follow up conversation with management confirmed continuing momentum in the recovery with a lot more to come in the next few quarters.
- Sports, digital, and F&B are leading the recovery with greater mobility boosting sales but online sales remain strong reflecting changing consumer habits and the success of the company’s strategy there.
- Mitra Adiperkasa is back on an expansion tack both in Indonesia and in Thailand, Vietnam, and the Philippines, with capex forecast at 2019 levels this year. Valuations are attractive.
Shanghai/Shenzhen Northbound Connect: Weekly Moves (27 May 2022)
- Inside is a recap of movements in the last week relating to the Hong Kong Stock-Shanghai and Shenzhen Northbound Connect facilities, broken down by company and industry.
- Overall, net inflow was ~US$0.7bn, split between Shanghai (+US$1bn) and Shenzhen (-US$0.3bn)
- The largest inflows were into China Yangtze Power (600900 CH) and Cosco Shipping Holdings (601919 CH). The largest outflows were in Kweichow Moutai (600519 CH)and CATL (A) (300750 CH).
Latest Memo From Howard Marks: Bull Market Rhymes
- In a bull market, favorable developments lead to price rises and lift investor psychology.
- Raging bull markets are examples of mass hysteria. At the extreme, thinking and thus behavior become unmoored from reality.
- Bull markets don’t treat all sectors the same. In bull markets, optimism coalesces most powerfully around certain groups of securities, such as “the new thing” or “super stocks.”.
Voss Capital Q1 2022 Letter To Partners
- There was far too much “easy money” made for too long and now many new investors have finally encountered their first excruciating rite of passage following the selloff this year.
- Because we are finding so many fast-growing companies with good operating visibility and low leverage at very high FCF yields, we have not become too bearish on the market as a whole.
- As of the middle of May, we estimate that the upside to our long book exceeds 100% in the next 12-18 months.
Before it’s here, it’s on Smartkarma
