In today’s briefing:
- Thinking About Japanese Banks – Go Big, Go Small, Go Insurance
- Mitsui & Co To Buy Out Relia (4708) – Moshi Moshi Is TOO CHEAP
- Quiddity Primer for HSCEI Rebalance Events
- EQD | Alibaba (BABA US): Leverage up Longs Using Call Ratios
- Osstem Implant: Potential M&A Fight Between KCGI And Founder Choi
- Liquid Universe of European Ordinary and Preferred Shares: January ‘23 Report
- WM Motor Reverse Merger and Placement – The US$2bn Merger and US$500m Planned Placement
Thinking About Japanese Banks – Go Big, Go Small, Go Insurance
- Japanese Banks have had a good run recently. From the day before the BOJ changed the 10yr yield target in December in its YCC programme to today, +30% vs TOPIX.
- The question is how that is spread out. There are lots of banks. Some are cheaper than others. Some are better than others. Can we draw conclusions to trade better?
- If you are looking at Japanese Banks to play a change in BOJ policy when Governor Kuroda’s term ends shortly, there are definitely conclusions one can draw. I offer comments.
Mitsui & Co To Buy Out Relia (4708) – Moshi Moshi Is TOO CHEAP
- Mitsui&Co has been in Relia Inc (4708 JP) for a long time. As part of investing in BPO/RPA/AI services, they are buying out Relia, merging it with a KDDI sub.
- They are buying it at an all-time high, and a 50% premium. Looks nice. But it’s not nice enough.
- This is one of those times when I can reiterate, Japan Needs More Cowbell.
Quiddity Primer for HSCEI Rebalance Events
- The Hang Seng China Enterprises Index (HSCEI INDEX) is one of the most widely discussed indices in the Hang Seng Indices family.
- The HSCEI serves as a benchmark to reflect the overall performance of “Mainland” Securities listed in Hong Kong.
- In this insight, we take a brief look at the selection criteria and the historical price performance of past Rebalance Events.
EQD | Alibaba (BABA US): Leverage up Longs Using Call Ratios
- BABA US is up 85% from October lows and continues to trade well in 2023 up 32% in January
- Stock has benefitted from not only improved economic sentiment but also an end to the 2-year crack down on the Internet Sector
- We suggest using call ratios to increase upside leverage prior to earnings release
Osstem Implant: Potential M&A Fight Between KCGI And Founder Choi
- The case involving KCGI (a local corporate activist private equity fund) and Osstem Implant (048260 KS) is one of the more interesting situations rising in the Korea’s M&A/corporate activism markets.
- Osstem Implant is the number one dental implant company in Korea/Asia and the fourth largest player in this segment globally.
- We believe Osstem Implant could outperform the market in 2023 due to improving fundamentals, cheap valuations, and a potential M&A fight between KCGI and Chairman Choi.
Liquid Universe of European Ordinary and Preferred Shares: January ‘23 Report
- Since mid-December, spreads have shown a mixed performance across our liquid universe (9 have widened, 9 tightened, 1 at same level).
- Trade recommendations long ords / short prefs: Fuchs Petrolub, Henkel, Handelsbanken, SSAB Svenska Stal.
- Trade recommendations long prefs / short ords: Sixt, VW, Danieli, MFE-Media for Europe, Grifols, Atlas Copco, Ericsson.
WM Motor Reverse Merger and Placement – The US$2bn Merger and US$500m Planned Placement
- On 11th Jan 2023, WM Motor Technology Co Ltd announced its intention to merge with Apollo Future Mobility (860 HK) .
- WM Motor failed to list in Hong Kong last year and this is essentially its attempt to undertake a reverse merger at a valuation well below its previous funding rounds.
- In this note, we will talk about the deal dynamics and take an early look at its implications.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
