In today’s briefing:
- Fengxiang (9977 HK): Offer Doc Out. Tender Now Or Sell In The Market
- India Channel Insight #47 | Go Fashion, Lux Industries
- Upgrading Staples and Health Care to Overweight; Stay Defensive, Expecting Test of YTD Lows on SPX
- An Update to Our Pair Trade Between Emart & Coupang
Fengxiang (9977 HK): Offer Doc Out. Tender Now Or Sell In The Market
- The Composite Document for Shandong Fengxiang (9977 HK)‘s unconditional mandatory Offer from PAG Capital is now out.
- Shareholders who tender will be paid within 7 business days.
- An H-class meeting will be held on the 18 January to vote on whether to delist Fengxiang. There is no guarantee this will occur.
India Channel Insight #47 | Go Fashion, Lux Industries
- Our flash checks for Go Fashion India (GOCOLORS IN) and LUX Industries Ltd (LUX IN) suggest weak consumer sentiment continues to prevail.
- Competitive intensity is an area of concern for category creator and leader Go Fashion India (GOCOLORS IN)
- Rupa & Company (RUPA IN) is giving a tough fight to LUX Industries Ltd (LUX IN) in the rural markets.
Upgrading Staples and Health Care to Overweight; Stay Defensive, Expecting Test of YTD Lows on SPX
- Since late November we have been discussing our expectations for a pullback, while recommending shifting exposure to defensives (Staples, Utilities, Health Care) and/or taking profits.
- The pullback is finally happening following breaks below 3910 support on the S&P 500, $177.50 support on the Russell 2000 (IWM), and $279 support on the Nasdaq 100 (QQQ).
- These levels are now resistance, while major resistance remains at 200-dayMAs/YTD downtrends. Stick with defensives/cash as we believe a test of the YTD lows on the aforementioned indexes is likely.
An Update to Our Pair Trade Between Emart & Coupang
- In this insight, we discuss an update of pair trade between Emart (long) and Coupang (short).
- Back on 1 August 2022, we recommended a pair trade between E Mart Inc (139480 KS) (long) and Coupang (CPNG US) (short).
- This pair trade has worked well in the past five months and we continue to like this pair trade (long Emart and short Coupang).
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