In today’s briefing:
- Adani Family Sells Stakes To GQG
- Long Short Setup Candidate: Posco Holdings & Celltrion with TIGER Top 10 Rebalancing
- KOSDAQ150 Index Rebalance Preview: Potential Adds Outperform Deletes by 50% in 4 Months, EXIT!
- Ihara Science (5999 JP) – Not Over But Not a Great Look
- US Large-Sized Farms Increase – Due to Input Cost Pressure // The Fall of The Petrodollar
Adani Family Sells Stakes To GQG
- Late Thursday night, the Adani Group announced that the family entities had sold Rs 154bn or US$1.8bn+ of stock in four listed entities to Australian-listed GQG Partners (GQG AU).
- GQG is a US$90bn AUM asset manager specialising in emerging markets. They bought stakes of 2.55-4.10% in each of four entities.
- This “increases” float, but doesn’t. As of now, this will partially offset one MSCI downweight in May, and will likely cause three FIF uplifts.
Long Short Setup Candidate: Posco Holdings & Celltrion with TIGER Top 10 Rebalancing
- Celltrion and Posco Holdings will switch places. Although there is still time until the screening period, the market capitalization gap between them has already widened significantly.
- Posco Holdings will likely welcome a passive inflow of 0.44x ADTV, whereas Celltrion is expected to face outflows of around 0.69x ADTV.
- Ecopro BM entered the Top 20 (preliminary screening table) with a YTD stock price increase of 130%, becoming the first KOSDAQ-listed company to do so.
KOSDAQ150 Index Rebalance Preview: Potential Adds Outperform Deletes by 50% in 4 Months, EXIT!
- Two thirds of the way through the review period for the June rebalance, we see 9 potential changes to the KOSDAQ 150 Index (KOSDQ150 INDEX).
- One-Way turnover is estimated at 3.5%. Impact on the expected deletions is a lot higher than the impact on the expected inclusions and shorts are building up on the deletes.
- Since the start of the review period, the potential inclusions have outperformed the potential deletions by nearly 50% and the KOSDAQ 150 Index (KOSDQ150 INDEX) by over 20%.
Ihara Science (5999 JP) – Not Over But Not a Great Look
- Today after the close, Ihara Science (5999 JP) reported on TDNet a forthcoming change in the Tender Offer Registration Statement by MBO bidder N.I.M.
- N.I.M. and normally-known-as-deep-value-activist NAVF (a.k.a. Nippon Active Value Fund), Ihara Science’s #2 shareholder, signed a Tender Offer Agreement whereby NAVF agreed to tender.
- It got a little more complicated 90mins later, but this was an announcement which did not need to be made. It begs the question of why. And what next.
US Large-Sized Farms Increase – Due to Input Cost Pressure // The Fall of The Petrodollar
- US Large-Sized Farms Increase – Due to Input Cost Pressure According to the Farms and Land in Farms Report by the USDA, the largest farms in the US that had sales of $1 million or more, now operate almost 26% of the country’s farmland.
- The farms in this sales class have increased in size, while farms in every other sales class have either remained the same size or decreased.
- According to the Farms and Land in Farms Report by the USDA, the largest farms in the US that had sales of $1 million or more, now operate almost 26% of the country’s farmland.
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