In today’s briefing:
- Nikkei 225 March 2023 Rebal On The Follow – Predictions (3 In, 3 Out) & Problems
- STAR50 Index Rebalance Preview (Sep): Adds Outperforming the Deletes
- Taking Advantage of SKT’s Rapid Increase in Short-Selling Amid MSCI Deletion Event
- Unity Software Inc.: Initiation of Coverage – IronSource Acquisition, Metaverse Upside, & Market Position, Financial Forecasts, DCF & Comparables Valuation, Key Risks (07/22)
Nikkei 225 March 2023 Rebal On The Follow – Predictions (3 In, 3 Out) & Problems
- Yesterday I published Nikkei 225 Sep Annual Review Predictions – 3 In, 3 Out. Assuming correct, and we move the last 6mos of data 6mos forward, March23 Rebal is below.
- This too is 3 in, 3 out. But it is complicated. “Required” changes would move the sector balance further out of whack.
- And while some of the trades are “interesting”, the rebal is smaller and the bigger question is “What comes after that?”
STAR50 Index Rebalance Preview (Sep): Adds Outperforming the Deletes
- Over 96% of the way through the review period, we see 1 change using a 12 month minimum listing history, and 5 changes using a 6 month minimum listing history.
- We expect the index committee to continue using the shorter minimum listing history since the potential adds have much larger market caps than the potential deletes.
- The potential adds have outperformed the potential deletes over the last month and there could be more once the current consolidation is complete.
Taking Advantage of SKT’s Rapid Increase in Short-Selling Amid MSCI Deletion Event
- As of July 19, SKT was in the top 50 short-selling KOSPI stocks. SK Telecom ranked 8th and 18th in terms of short-selling amount and short-selling ratio to trading volume.
- Deletion is practically a foregone conclusion if MSCI does not calculate SKT’s foreign room that reflects the DR situation. Reversing requires calculating a flexible foreign room considering the DR situation.
- However, the critical point here is that in any of the above cases, SKT’s stock price is highly likely to rise on the date the results are announced.
Unity Software Inc.: Initiation of Coverage – IronSource Acquisition, Metaverse Upside, & Market Position, Financial Forecasts, DCF & Comparables Valuation, Key Risks (07/22)
- This is our first report on game development software market leader, Unity Software.
- The company’s stock has taken a beating loke most other software players with a negative bottom-line.
- Its previous quarterly result was also below par despite the company generating $320 million, an increase of 36% from the previous year.
💡 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
