In today’s briefing:
- Fadu IPO – Thoughts on Valuation
- EQD | S&P500 E-Mini (ES) DAILY SHORT, Speculative High-Probability Trade
- Korea Small Cap Gem #22: YMC (Beneficiary of China’s Restriction of Gallium Exports)
Fadu IPO – Thoughts on Valuation
- Fadu (440110 KS) is looking to raise up to US$147m in its Korean IPO.
- Fadu is a South Korean fabless semiconductor maker mainly engaged in flash storage technology innovation. Its core products are Enterprise Solid State Drive (SSD) and Enterprise SSDs.
- In our previous notes, we looked at the company’s past performance and undertook a peer comparison. In this note, we talk about valuation.
EQD | S&P500 E-Mini (ES) DAILY SHORT, Speculative High-Probability Trade
- The S&P500 E-Mini (ES) is approaching a DAILY resistance level at a point in time where it could perform a quick reversal – a SHORT trade opportunity.
- Watch the 4483-4525 price area, today is the 3rd consecutive day up, the reversal could begin in that area, today or tomorrow.
- The probability for a quick reversal, after 3 days up, in the 4483-4525 price area, is between 67% to 79%, depending on the resistance levels reached.
Korea Small Cap Gem #22: YMC (Beneficiary of China’s Restriction of Gallium Exports)
- On 3 July 2023, the Ministry of Commerce of China announced that it will restrict exports of gallium and germanium starting next month.
- YMC is one of the key beneficiaries in Korea of China’s restriction of gallium exports. YMC makes silicon carbide which can be a substitute material for gallium.
- YMC’s valuation is relatively cheap. Given that YMC currently has a market cap of 150 billion won, this would represent P/E of 7.3x (using 2022 net profit).
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