In today’s briefing:
- Chongqing Hongjiu Fruit IPO: Not Very Fruitful
- Tesla Splitsville
- Coupang: Just About Halfway in Correction
- Tesla Trading Strategy Until August 25th Stock Split
Chongqing Hongjiu Fruit IPO: Not Very Fruitful
- Chongqing Hongjiu Fruit (CHF HK) focuses on managing the entire supply chain for quality fruits grown in China, Thailand and Vietnam.
- The company has a portfolio of 49 fruit categories and has filed for an IPO on HKEx and plans to raise proceeds of US$300m.
- CHF’s earnings growth is slowing down while margins are trending downwards and the company’s cashflow burn is increasing
Tesla Splitsville
- Tesla will split its stock 3-1, as expected, effective August 25th.
- But investors & analysts remain split over Tesla’s falling sales & profitability
- And whether CEO Elon Musk has become its biggest liability.
Coupang: Just About Halfway in Correction
- Leading into 2Q22 results (due 10th August 2022), we are short Coupang (CPNG US) with expectations of around 5% and 27% downside to consensus 2022 and 2023 revenue estimates.
- Consensus has just about reached the halfway stage of a long correction process with current revenue estimates standing significantly above the pre-COVID trend.
- Meanwhile, Coupang is under a lot of pressure to cut losses in the short term and attain the targeted long-term EBITDA margin of 7-10%.
Tesla Trading Strategy Until August 25th Stock Split
- Last Friday, Tesla shareholders approved a 3:1 stock split set to go into effect on August 25th. The stock has already rallied on these expectations, up 44% since mid-June lows.
- We wouldn’t be surprised if CEO Elon Musk sells into the split, given his need to shore up cash for the potential Twitter buyout in October.
- Both Amazon and Google outperformed the market, but sold off in the days and weeks post-split. We expect Tesla to follow this pattern, but in a more augmented fashion.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
