In today’s briefing:
- A Guide to Arb Trade in Rights Offer: Feat. HLB & Lotte Chemical
- JB Financial Group: Four Key Investment Merits
A Guide to Arb Trade in Rights Offer: Feat. HLB & Lotte Chemical
- This post will specifically examine arb trade opportunities during the subscription rights trading period, with the recent HLB and Lotte Chemical cases.
- HLB gave an arb yield of 8%. As for Lotte Chemical, the size (₩1.1T) is much bigger, and it carries single-stock futures, a powerful incentive for arb traders.
- Another thing for Lotte Chemical is that it is unclear whether the major shareholders will participate in the subscription, which can lead to a widening of our arb spread.
JB Financial Group: Four Key Investment Merits
- There are four major reasons why we like JB Financial Group.
- They include highest ROE among peers, highest dividend yield among peers, potential inclusion in KOSPI200 in 2023, and continued pressure by Align Partners to improve corporate governance.
- One of the key risk factors of the company is that it is not a nationwide banking group but most of its operations are in the southwestern portion of Korea.
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