In today’s briefing:
- Entry Opportunities from Delisting Risk Due to Korea Zinc’s Post-Buyback Volume Drying Up
- Korea Zinc: Court Dismisses the Second Injunction Filed by MBK
- Quiddity Leaderboard ASX Dec 24: Clarity Pharma and Resolute Mining Competing for ASX 200 Spot
- Waaree Energies IPO Update- Forensic Analysis
- The Chemours Company: Expansion of Fluoropolymer Applications & Dealing With Fluctuating Demand! – Major Drivers
- PBF Energy Inc.: Tackling The Challenges of Maintaining Competitive Market Positioning! – Major Drivers
- Helixtap China Report: Declining Inventory Point At Improved Demand; Sustainability Questionable
- DT Midstream Inc.: Leveraging LNG Growth & Commercial Growth Opportunities To Change The Game! – Major Drivers
- Noble Corporation Plc: Enhancement of Fleet Utilization Driving Our Optimism! – Major Drivers
- US Rig Count Falls for the Fourth Time in Five Weeks
Entry Opportunities from Delisting Risk Due to Korea Zinc’s Post-Buyback Volume Drying Up
- Korea Zinc’s delisting daily trading volume cutoff is 20K, about 0.12% of the total. We might see volumes plummet, making it tough to maintain even that 20K level.
- Keep an eye on trading opportunities; we have some time with delisting risks, but low trading volume could lead to being booted from the KOSPI 200 and Global Index.
- This sell-off could spike short-term volatility and create great entry points for trading, especially after the court approved the buyback tender, denying MBK’s injunction.
Korea Zinc: Court Dismisses the Second Injunction Filed by MBK
- The Seoul Central District Court dismissed the second injunction filed by MBK Partners and Young Poong to suspend the share buyback/tender offer by Korea Zinc Chairman Choi and his allies.
- As a result of the court dismissing the second injunction filed by MBK, the M&A fight for Korea Zinc is likely to continue until the AGM in March 2025.
- Depending upon Korea Zinc’s tender offer subscription, there is a possibility of MBK buying more shares directly from the market if the subscription falls below the proposed amounts.
Quiddity Leaderboard ASX Dec 24: Clarity Pharma and Resolute Mining Competing for ASX 200 Spot
- In this insight, we take a look at the potential index changes for ASX200, 100, 50, and 20 in the run-up to the December 2024 index rebal event.
- We currently do not see any index changes for ASX 20 and ASX 100.
- We continue to expect one change for ASX 50. However, our expectations for ASX 200 have changed since our last insight (link).
Waaree Energies IPO Update- Forensic Analysis
- Waaree Energies (0656504D IN) awaited IPO is about to open on October 21. The IPO comprises of fresh issue worth INR 36 bn and OFS worth INR 7.2 bn.
- This insight is an update to the previous note on the company Waaree Energies IPO- Forensic Analysis , on the forensics front.
- The company still faces some of the forensic setbacks we found in the DRHP. These include capital purchases from related parties, heated receivables, bizarre lease accounting, unpaid dues, etc.
The Chemours Company: Expansion of Fluoropolymer Applications & Dealing With Fluctuating Demand! – Major Drivers
- The Chemours Company faced various challenges in the second quarter of 2024, yet demonstrated resilience and adaptability in managing these issues.
- Key points from the earnings call include the impact of a severe drought on their titanium dioxide production at Altamira, Mexico, which led to unplanned downtime and an $8 million cost for the quarter.
- Despite this, Chemours was proactive in addressing the immediate needs of affected employees and the community while optimizing production to meet customer demands, achieving a 16% increase in volumes compared to the first quarter.
PBF Energy Inc.: Tackling The Challenges of Maintaining Competitive Market Positioning! – Major Drivers
- PBF Energy’s second quarter 2024 earnings presentation reveals a mixed financial landscape marked by challenges and strategic achievements.
- Despite experiencing weaker-than-expected earnings, the company successfully maintained a robust cash position and further advanced its operational goals.
- The quarter faced unusual market conditions where RIN-adjusted crack spreads saw a significant decrease, contributing to tighter margins across the board.
Helixtap China Report: Declining Inventory Point At Improved Demand; Sustainability Questionable
- Inventory lowest since February 2024
- Arbitrage widens for African and Indonesian rubber
- Expansion in imports & exports in August
DT Midstream Inc.: Leveraging LNG Growth & Commercial Growth Opportunities To Change The Game! – Major Drivers
- DT Midstream reported strong financial results in the second quarter of 2024, continuing to align with their full-year plans.
- President and CEO David Slater confirmed the reaffirmation of their 2024 adjusted EBITDA guidance range and provided a positive outlook for 2025.
- The quarter highlighted several strategic advancements, particularly in organic growth projects which are expected to drive future earnings.
Noble Corporation Plc: Enhancement of Fleet Utilization Driving Our Optimism! – Major Drivers
- Noble Corporation delivered a robust performance in its second quarter of 2024 results, reflecting a 50% increase in adjusted EBITDA compared to the previous quarter.
- President and CEO Robert Eifler highlighted the commencement of key contracts and the solid execution of shipyard programs as significant contributors to the company’s positive trajectory.
- These contract start-ups, particularly noted with rigs like the Noble Regina Allen and Noble Discoverer, underscored operational efficiency and led to an upward revision in EBITDA guidance to a range of $950 million to $1 billion for the year.
US Rig Count Falls for the Fourth Time in Five Weeks
- The US oil and gas rig count fell by one to 585 for the week ending 18/Oct, marking the fourth decline in five weeks.
- The US oil rig count increased by one to 482. Meanwhile, gas rigs decreased by two to 99, falling below 100 again.
- For the week ending 18/Oct, US energy producers added one rig each in Colorado and Oklahoma but cut two in Texas.
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