In today’s briefing:
- KOSDAQ 150 Rebalancing: 7 Regular Changes + 2 Special Entries
- Samsung Electronics: Lee Jae-Yong Orders the Creation of a New Task Force to Raise Shareholder Value
- Trading Ideas on the Possibility of Samsung Electronics’ Special Shareholder Returns
- A Senior Korean Govt Official Provides the Likely Time of the End of Indoor Mask Mandate
KOSDAQ 150 Rebalancing: 7 Regular Changes + 2 Special Entries
- KOSDAQ 150’s December rebalancing will feature seven regular changes and two special entries.
- Among the additions, we should focus on Dear U and ISC, which have a balanced level of liquidity and flow, rather than those theme stocks with high volatility.
- As for Nature Holdings, Eoflow, and Nextin, I suggest a more aggressive entry point due to low trading volume. Then, I’d basket-trade the deletions on equal weight.
Samsung Electronics: Lee Jae-Yong Orders the Creation of a New Task Force to Raise Shareholder Value
- On 4 October, it was reported that Samsung Electronics (005930 KS) has set up a task force to raise shareholder value of the company.
- This task force was formed at the order of Samsung’s Vice Chairman Lee Jae-Yong.
- All in all, a major share buyback and cancellations coupled with higher dividends could result in a share price turnaround for Samsung Electronics.
Trading Ideas on the Possibility of Samsung Electronics’ Special Shareholder Returns
- 1P/Ord LONG/SHORT betting on a 1P-skewed buyback does not look very desirable. The Lee family’s financial needs are short-term, so there is no need for a 1P-skewed buyback.
- Given that the 1P discount rate has stabilized again, a strategy betting on the mean reversion does not seem very timely either.
- We should look at the possibility that false expectations for a special year-end dividend will further deepen futures backwardation. This situation can lead to quite a juicy spot/futures spread opening.
A Senior Korean Govt Official Provides the Likely Time of the End of Indoor Mask Mandate
- In the past few days, a senior government Korean official announced that the indoor mask mandates will likely be lifted in March 2023.
- Although this is not officially finalized, we believe that there is a very high probability of the Korean government finally ending the indoor mask mandate sometime in March 2023.
- The end of the indoor mask mandate is likely to have a positive impact on the Korean cosmetics companies. Nonetheless, we are still concerned about the relatively high valuation multiples.
💡 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
