In today’s briefing:
- Investigating the Use of SSF Listing Events as Fresh Flow Trading Opportunities in Korea
- Micron. Earnings Puts & Takes. Take Your Pick
- Silergy (6415.TT): Chinese Analog IC Could Raise up Prices by About 15%.
- AI PC Reality Check: PC Upgrade Cycle Ahead, But Worth a 50% 1M Acer Rally? Long Dell Vs. Short Acer
Investigating the Use of SSF Listing Events as Fresh Flow Trading Opportunities in Korea
- The spot prices of the newly listed SSFs generally exhibited a notable upward trend. This trend was consistently more pronounced in KOSDAQ-listed stocks compared to KOSPI-listed ones.
- Various factors, including actions by ETF operators, may contribute. Their SSF purchases could deepen contango, leading to temporary spot price increases through arb spread seekers anticipating this development.
- We should focus on a potentially consistent price pattern persisting before a sufficient learning effect accumulates. The tight schedule after July increases the likelihood of similar opportunities next March.
Micron. Earnings Puts & Takes. Take Your Pick
- Q1FY24 revenues of $4.7 billion, up 18% QoQ and up 16% YoY, and $100 million above guided high end, as already flagged on November 28
- Q2FY24 guidance of $5.3 billion, a ~13% increase QoQ. This will once again be loss-making quarter to the tune of an EPS loss of 28 cents.
- Things are looking up for Micron, but 2024 will still be a “recovery” year.
Silergy (6415.TT): Chinese Analog IC Could Raise up Prices by About 15%.
- A recent news report speculates that Analog Devices (ADI US) is planning to raise prices by ~20%.
- Silergy Corp (6415 TT) is reportedly considering a price increase of over 15% in the Chinese market.
- We believe that now is a good time to invest in Silergy.
AI PC Reality Check: PC Upgrade Cycle Ahead, But Worth a 50% 1M Acer Rally? Long Dell Vs. Short Acer
- Taiwan PC makers have been top performers in the market; some may worry that their rallies have become over-extended by too much AI PC excitement.
- We believe Dell may present a Long opportunity as the Long side to a Long/Short trade whereby one Sells Acer against it. Acer rose over 50% in December.
- Dell will report its results end-February. We would Long Dell vs. Short Acer ahead of the Dell earnings event. We see more upside surprise potential in Dell.
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