In today’s briefing:
- S&P500/400/600 Index Rebalance: Dell, Palantir Make It (Finally!); Apple Upweight
- Merger Arb Mondays (09 Sep) – Shinko, Fuji Soft, Pasco, GA Pack, CPMC, Latin Res, Capitol, PSC, Rex
- Taiwan Top 50 ETF Rebalance: Rallying PharmaEssentia To Replace Sliding Nanya Tech
- Yuanta/P-Shares Taiwan Div+ ETF Rebalance: Nuvoton Could Take Another Leg Lower
- Elastic N.V.: An Insight Into Their Pricing Strategy & Our Revenue & Profitability Projections! – Major Drivers
- Autodesk Inc.: Expansion into Digital Transformation Solutions & Use Of AI-ML To Drive Growth! – Major Drivers
- Nutanix Inc.: Increased Demand for Private Cloud Solutions Driving Our Optimism! – Major Drivers
- HashiCorp Inc.: Are Their Tailored Security Solutions Working Well? – Major Drivers
- MongoDB: How Are They Capitalizing On The Expanding Use Case Versatility? – Major Drivers
- Box Inc.: Can They Survive The Risks of Competitive Pressure in Cloud Services? – Major Drivers
S&P500/400/600 Index Rebalance: Dell, Palantir Make It (Finally!); Apple Upweight
- There are 3 changes for the S&P 500 INDEX, 8 changes for the S&P Midcap400 Index and 15 changes for the S&P SmallCap600 Index at the September rebalance.
- Dell Technologies (DELL US) and Palantir Technologies (PLTR US) were finally added to the S&P 500 INDEX (SPX INDEX) and there is huge size to trade in the stocks.
- There will also be big buying in Apple (AAPL US) following a float increase driven by Berkshire Hathaway Inc Cl A (BRK/A US) selling last quarter.
Merger Arb Mondays (09 Sep) – Shinko, Fuji Soft, Pasco, GA Pack, CPMC, Latin Res, Capitol, PSC, Rex
- We summarise the latest spreads and newsflow of merger arb situations we cover across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Philippines, Thailand and Chinese ADRs.
- Highest spreads: Yichang HEC Changjiang Pharma (1558 HK), Canvest Environmental Protection Group (1381 HK), Shinko Electric Industries (6967 JP), Malaysia Airports Holdings (MAHB MK), Greatview Aseptic Packaging (468 HK).
- Lowest spreads: Fuji Soft Inc (9749 JP), Tohokushinsha Film (2329 JP), Second Chance Properties (SCE SP), Fancl Corp (4921 JP), Descente Ltd (8114 JP), C.I. TAKIRON Corporation (4215 JP).
Taiwan Top 50 ETF Rebalance: Rallying PharmaEssentia To Replace Sliding Nanya Tech
- Pharmaessentia Corp (6446 TT) will replace Nanya Technology (2408 TT) in the Yuanta/P-Shares Taiwan Top 50 ETF at the close of trading on 20 September.
- Shorts have been covering positions in Pharmaessentia Corp (6446 TT) while there has been a surge in new short positions in Nanya Technology (2408 TT).
- Cumulative excess volume in Pharmaessentia Corp (6446 TT) has flattened out as momentum has stalled while there has been a surge in cumulative excess volume for Nanya Technology (2408 TT).
Yuanta/P-Shares Taiwan Div+ ETF Rebalance: Nuvoton Could Take Another Leg Lower
- Nuvoton Technology (4919 TT) will be deleted from the Yuanta/P-Shares Taiwan Dividend Plus ETF at the close on 20 September. That was expected.
- Passive trackers will need to sell 20.3m shares of Nuvoton Technology (4919 TT). That is 7x ADV, 4.8% of shares outstanding and 10.4% of float.
- With no change in cumulative excess volume over the last few weeks and only a tiny increase in short interest, there could be more positioning in the stock near-term.
Elastic N.V.: An Insight Into Their Pricing Strategy & Our Revenue & Profitability Projections! – Major Drivers
- Elastic N.V. reported an 18% year-over-year growth in total revenue, with cloud revenue experiencing a 30% increase.
- The non-GAAP operating margin was 10.7%, aligning with the company’s performance exceeding its revenue and profitability guidance.
- A key strategy highlighted was their “land, expand, and consolidate” approach, which has led to growth in customers spending over $100,000 to more than 1,370.
Autodesk Inc.: Expansion into Digital Transformation Solutions & Use Of AI-ML To Drive Growth! – Major Drivers
- Autodesk, Inc. concluded its second quarter of Fiscal Year 2025 with robust results, characterized by a 13% revenue growth in constant currency, which has led to an upward revision of the full-year guidance.
- This reflects not only the success of the recent launch of their new transaction model in North America but also anticipates a similar introduction in Western Europe come September.
- Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.
Nutanix Inc.: Increased Demand for Private Cloud Solutions Driving Our Optimism! – Major Drivers
- Nutanix’s fourth quarter and fiscal year 2024 earnings results mark a period of solid performance and strategic progress.
- During the fourth quarter, Nutanix exceeded its financial guidance, achieving revenue of $548 million, which represents an increase of 11% year-over-year.
- This growth was supported by substantial free cash flow generation and the acquisition of significant new customers, the highest in three years.
HashiCorp Inc.: Are Their Tailored Security Solutions Working Well? – Major Drivers
- HashiCorp, a leading software company specializing in multi-cloud infrastructure automation software, reported a robust fiscal 2024 fourth-quarter performance.
- The company successfully exceeded its top and bottom line guidance, with total revenues achieving $156 million, up 15% year-over-year.
- This uplift was bolstered by solid non-GAAP remaining performance obligations which grew by 21% year-over-year to stand at $483 million, showing strong forward revenue visibility.
MongoDB: How Are They Capitalizing On The Expanding Use Case Versatility? – Major Drivers
- MongoDB reported a commendable performance in its second quarter for fiscal year 2025, displaying resilience and adaptability in a complex market environment.
- The company announced a revenue of $478 million, marking a 13% year-over-year increase which was above the upper limit of their provided guidance.
- This increase was buoyed significantly by the 27% growth in Atlas revenue, which now constitutes 71% of total revenue.
Box Inc.: Can They Survive The Risks of Competitive Pressure in Cloud Services? – Major Drivers
- Box, Inc. reported its second-quarter fiscal 2025 earnings with a focus on operational discipline, driving higher revenue growth and improved gross margins.
- The results demonstrate the company’s ability to adapt to the evolving technological landscape, particularly through its integration of AI into service offerings.
- Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.
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