In today’s briefing:
- Spotting Position Patterns: TIGER Battery ETF January Review & KODEX ETF’s March Rebalancing
- IRC (1029 HK)’s MBO’s MGO: Still An Avoid
- [Earnings Preview] Intl. & Offshoring Markets to Drive Stunning Earnings for Schlumberger in Q423
- Update Note – Ocean Power Technologies, Inc.
- Pulsar Helium Inc. – Additional Equity Provides Funding for Key Well Test and Additional Drilling
- Morning Views Asia: Tata Steel Thailand
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Spotting Position Patterns: TIGER Battery ETF January Review & KODEX ETF’s March Rebalancing
- TIGER ETF (305540) rebalanced on January 11th, with Ecopro Materials correcting by 4%, contrasting a 20% surge from Jan 8-10. TIGER recorded net purchases aligning with a 2% inclusion weight.
- Preemptive positions by local hedge funds were observed from Jan 8-10, closing on the 11th. Despite a KOSPI decline and minimal sector movement, Ecopro Materials exhibited this unusual price pattern.
- Observing this pattern implies a potential recurrence during the March rebalancing of KODEX ETF. Notably, local hedge funds may initiate similar preemptive positions. We should consider this in position setup.
IRC (1029 HK)’s MBO’s MGO: Still An Avoid
- Back on the 1st November, Nikolai Levitskii, Russian iron-ore play IRC (1029 HK)‘s chairman and largest shareholder, acquired 4.72% of shares out, lifting his stake above 30%, triggering an MGO.
- The Offer is conditional on Levitskii holding more than 50% of shares out. His intention is to maintain IRC’s listing. At the first close, he held 35.77% (5.16% had tendered).
- The current spread is 9.2%. MIC, with 16.67% of shares out, has yet to tender. Nor do I expect them to. Plus IRC is on the OFAC sanction list. Avoid.
[Earnings Preview] Intl. & Offshoring Markets to Drive Stunning Earnings for Schlumberger in Q423
- Growth is expected to be fueled by robust performance in international markets. Management expects revenue growth for 2023 to cross 15% YoY.
- Pretax operating margins in Q42023 to get a boost from higher year-end digital sales and seasonal product and equipment sales.
- The analyst consensus on the stock’s growth is overwhelmingly bullish given the expectation of strong growth in international and offshore segments.
Update Note – Ocean Power Technologies, Inc.
- Ocean Power Technologies, Inc. (OPT) substantially completed its research and development (R&D) phase and has witnessed meaningful progress in orders, pipeline, and backlog across its business.
- Additionally, the company has reallocated headcount toward execution and commercialization to bolster its next phase of evolution.
- OPT’s cutting-edge suite of products provides comfort against macro headwinds and also positions the company for commercial success and profitability in 2025.
Pulsar Helium Inc. – Additional Equity Provides Funding for Key Well Test and Additional Drilling
- Pulsar Helium is raising C$4.255 mm of new equity through a placement of 18.5 mm new unit at a price of C$0.23 per unit.
- Each unit consists of one share and one warrant with a strike price of C$0.36 per share. The warrants have a duration of 24 months.
- The proceeds of the raise will allow the company to fund the well test of the high impact Jetstream#1 appraisal well scheduled to spud in February at the Topaz project in Minnesota.
Morning Views Asia: Tata Steel Thailand
Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.