In today’s briefing:
- S&P 500/400/600 Index Rebal – It’s Not The Trade You Think
- Quiddity TDIV/50/100 Mar 24 Rebal: Disappointing Result but Trade Successful So Far; Bail Out Now!
- Mainland Connect NORTHBOUND Flows (To 1 Mar 2024): Foreigners Buy a New Set of Names
- Nippon Express Placement – Lukewarm Track Record, Although Buyback Could Lift Share Price
- CIMC Vehicles (301039 CH): Cheap And Steady Long Term Growth Potential
- Rb Global Inc (RBA.) – Sunday, Dec 3, 2023
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S&P 500/400/600 Index Rebal – It’s Not The Trade You Think
- On Friday after the close, the S&P DJI Index Committee announced changes to the S&P 100, S&P500, S&P MidCap400, and S&P SmallCap600. Changes happen at the close 15 March 2024.
- Super Micro Computer (SMCI US) and Deckers Outdoor (DECK US) replace Zions Bancorporation (ZION US) and Whirlpool Corp (WHR US) in the S&P500. 2 changes to 400, 6 to 600.
- The immediate reaction was to send SMCI up 12.5%. That’s shortsighted. It pays to count the pennies involved. There are a LOT of pennies.
Quiddity TDIV/50/100 Mar 24 Rebal: Disappointing Result but Trade Successful So Far; Bail Out Now!
- The index changes for the March 2024 index rebal event for the T50/100 index family and the TDIV index were confirmed after market close on Friday 1st March 2024.
- The confirmed changes for T50 and T100 were captured in our expectations but an additional change we expected did not materialize which adversely affected our flow expectations for March 2024.
- In this insight, we take a close look at the breakdown of our final flow expectations for the upcoming Inclusion/Exclusion and Capping events.
Mainland Connect NORTHBOUND Flows (To 1 Mar 2024): Foreigners Buy a New Set of Names
- The Quiddity Mainland Connect NORTHBOUND Monitor. Like the A/H Premium Monitor and HK Connect SOUTHBOUND Monitor. Lots of Flows/Position Tables and Charts with which to play.
- Last week saw NORTHBOUND net BUY RMB 23.5bn of A-shares on strong average activity after RMB +49bn the previous four trading weeks. More efforts by authorities to eliminate selling.
- No finance names of any kind in the top ten this week after 5/10 the week before. Slight tendencies to trade on reversion.
Nippon Express Placement – Lukewarm Track Record, Although Buyback Could Lift Share Price
- A group of shareholders are looking to raise US$220m from selling their stakes in Nippon Express Holdings (9147 JP).
- Overall, the deal would be a relatively large one to digest at 11 days of Nippon Express’ three month ADV, and 4.8% of the firm’s total shares outstanding.
- Together with the announcement, the firm has also guided towards a share buyback program which should provide some share price support a month post-deal, in our view.
CIMC Vehicles (301039 CH): Cheap And Steady Long Term Growth Potential
- CIMC Vehicles Group (301039 CH) (CIMCV) is a leading global manufacturer of semi-trailers and various truck bodies that is the mainstay of heavy ground goods transport
- 9M23 earnings surged by 216% and beat consensus, scope for further earnings upgrade as the business and management outlook statement is very positive
- Our target price of CNY12.50 (+31% UPSIDE) is based on 2024 PE 15x – a 10% discount against the industry leader Caterpillar
Rb Global Inc (RBA.) – Sunday, Dec 3, 2023
Key points
- Ritchie Brothers has faced challenges such as contentious acquisition, activist involvement, dilutive financing, and firing of key executives
- Despite these challenges, the company’s profitability has been improving significantly
- Author believes RB Global’s earnings power will continue to grow, potentially reaching $5 per share by 2025, presenting a favorable comparison to the current share price in the $60s
This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.