In today’s briefing:
- O2Micro Trading Wide To Terms Ahead Of Shareholder Vote
- Retrospectively Reviewing Prop Traders Vs. Retail on T±4 Ex-Date
- JPX-Nikkei 400 Rebal 2023: End-Dec 2022
- MergerTalk: Regulators May Be Hard Pressed To Prove The Amazon/IRobot Deal Harmful To Competition
O2Micro Trading Wide To Terms Ahead Of Shareholder Vote
- Back on the 30 September, O2Micro International (OIIM US), an integrated circuits play, announced a definitive privatisation from management at US$5.00/ADS, a 68.9% premium to the undisturbed price.
- An EGM will take place on the 31 January. The Offer requires shareholders representing at least two-thirds of O2Micro vote FOR. 16.9% of shares out are supportive.
- This Offer is expected to close in the 1Q23. The IFA considers the Offer fair.
Retrospectively Reviewing Prop Traders Vs. Retail on T±4 Ex-Date
- This year is less intense compared to previous years. However, given this year’s overall market returns and the lower visibility of yearend dividends, it is still a reasonably aggressive flow.
- Most of this PROP flow should have been dividend hunting aimed at the distortion of ex-date price correction caused by RETAIL’s tax avoidance-driven selling flow.
- The performance of the individual stock position strategy (entering on T-4~1 ex-date) might not have been as juicy as expected, but it still managed to deliver a positive return.
JPX-Nikkei 400 Rebal 2023: End-Dec 2022
- JPX-Nikkei 400 is composed of common stocks listed on the Tokyo Stock Exchange. It is a free-float-adjusted market-value-weighted (capped) index composed of 400 constituents.
- A periodic review is conducted by the Index providers, the JPX Group and Nikkei Inc, in August every year. We look at the potential forward inclusions and removals every month.
- Below is a look at potential Inclusions and Removals for the JPX-Nikkei 400 Rebalance to come in August 2023 based on trading data as of end-December 2022.
MergerTalk: Regulators May Be Hard Pressed To Prove The Amazon/IRobot Deal Harmful To Competition
- Amazon’s pursuit of robotic vacuum manufacturer iRobot is being scrutinized by the FTC, a merger which we think the regulator will be hard pressed to prove is harmful to competition.
- However, although unlikely, the pending ruling next month on the FTC’s unusual lawsuit against Meta’s acquisition of virtual reality start-up Within could rewrite regulatory guidelines for vertical mergers
- The 27% spread offers a potentially lucrative trade generating double-digit IRR even if deal completion is delayed by regulatory review, although it might be wise to entertain some downside protection
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