In today’s briefing:
- A High Conviction Long Short Trade in KODEX Battery ETF Rebalancing in June
- Ecopro BM: Considering on a CB Issuance of 500 Billion Won
A High Conviction Long Short Trade in KODEX Battery ETF Rebalancing in June
- WCP will likely be included in the rebalancing of Samsung KODEX Secondary Battery Industry ETF in June. And we should consider the possibility of this happening to be quite high.
- We can expect a daily passive inflow of around 0.3x compared to WCP’s typical DTV. The practical correlation with the price should be higher than the theoretical level.
- We should consider using SKIET, which engages in the same business in the same sector, as a hedge. WCP/SKIET Long Short achieved considerable performance within the past week’s window.
Ecopro BM: Considering on a CB Issuance of 500 Billion Won
- According to Hankyung Business Daily, Ecopro BM Co Ltd (247540 KS) is considering on issuing a CB worth 500 billion won to various private equity and asset managment companies.
- We would be negative on the potential CB issuance of nearly 500 billion won by Ecopro BM.
- The potential issuance of this CB is a signal from the management that it is trying to capitalize on the recent sharp increases in share price to raise more capital.
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