In today’s briefing:
- Emerging Korean Investment Theme: Potential Corporate Defense Mechanisms for Share Cancellations
- StubWorld: Union Stikes Impact MGM; MGM China Tops Pre-Covid Numbers
- EQD | HSI Rally: Possible Brief Stop This Week
Emerging Korean Investment Theme: Potential Corporate Defense Mechanisms for Share Cancellations
- Local sources confirm government’s focus on strengthening stock market for April election. Market expects aggressive policies for share cancellations, including corporate defense mechanisms.
- Chosun Ilbo, a government-friendly and influential media outlet, advocates for corporate defense mechanisms to boost share cancellations, shaping a political atmosphere.
- This theme is likely to emerge in Korea’s market. We must consider political dynamics and screen companies with high treasury shares for potential stock boosts.
StubWorld: Union Stikes Impact MGM; MGM China Tops Pre-Covid Numbers
- MGM China Holdings (2282 HK)‘s FY23 top line surpasses pre-Covid levels. MGM Resorts International (MGM US) figures hit by union strike at MGM Grand Detroit.
- Preceding my comments on MGM are the current setup/unwind tables for Asia-Pacific Holdcos.
- These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation >20%.
EQD | HSI Rally: Possible Brief Stop This Week
- The Hang Seng Index is rallying as anticipated in a previous insight, but it could stop this week and pullback a bit.
- 3 possible trades available: go SHORT and hold to profit from a re-start of the downtrend, go SHORT and close after 1 week, wait the pullback and go LONG.
- It’s unclear at the moment if the index will go lower or rebound after the upcoming pullback.
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