Daily Brief TMT/Internet: Posco DX, Phison Electronics, Microstrategy Inc Cl A, Microsoft Corp, LG CNS, Taiwan Semiconductor (TSMC) – ADR, ATN International, Mitsui & Co Ltd, Telecom Italia SPA and more

• This event drew significant attention, causing unusual price action. From Sept 20 to Nov 29, corrections in the deletions far outpaced the KOSPI, with the trend holding across key checkpoints.
• We’re watching 4 stocks: Kumho Petro, Lotte Chemical, Posco DX, and EcoPro Materials. SK Bioscience and Enchem are close, with small price moves likely pushing them out.
• Based on past rebalancing patterns, proactive positions on these names could trigger strong price action. All except Enchem have listed futures and solid volume, making trading conditions favorable.

• There are 8 changes a side for the TIP Customized Taiwan Select High Dividend Index in December. The TIP Taiwan Select High Dividend ETF (00919TW) has an AUM of US$9.3bn.
• Estimated one-way turnover is 17.2% and that will result in a round-trip trade of US$3.2bn. All adds and deletes have over 5x ADV to trade from passive trackers.
• The rebalance will be implemented over 8 trading days and the ETF started trading some stocks late last week and the rest from 17 December.

• Bitcoin has reached a new all-time high, surpassing $107,000 and steadily moving toward $110,000, as we predicted in Crypto Moves #55.
• That note remains highly relevant.
• Among the three most notable developments of the past week, MicroStrategy has been “QQQ’d.” Find out what that entails below, along with the other two standout pieces of news and the key charts shaping the market as we head into one of the last weeks of 2024.

• Our outlook remains bullish and we see the market in the midst of a significant end-of-year rally that we have been expecting since mid-October.
• We continue to expect support at 20-day MAs on $SPX and Nasdaq 100 (QQQ), while support at current levels or the 50-day MA is likely on the Russell 2000 (IWM).
• Market dynamics continue to improve, giving us confidence that this bull run is likely to go at least another month into mid-January, and quite likely beyond.

• The IT service market in Korea is estimated to be 51.5 trillion won in 2023 and it is expected to growth at a CAGR of 9.4% from 2023 to 2028.
• The Cloud & AI market is expected to grow at an annual rate of 10.5% from 32.7 trillion won in 2023 to 53.8 trillion won in 2028.
• LG CNS had about 8.9% share in the IT services market in Korea in 2023.

• TSM is upbeat on the AI demand and remains confident that the cycle has just begun with long a runway for growth ahead.
• TSM’s primary competitors, Intel and Samsung Electronics, are currently facing challenges within their foundry operations, placing TSM in a favorable position to expand its market share
• The Company anticipates a strong closing for FY:24 and has guided for nearly 35% YOY revenue growth in Q4 2024. We believe the momentum will continue in 2024E-2026E.

• ATNI, a telecom company, has been overlooked due to industry setbacks
• Company’s businesses are healthy and poised for growth in revenue and EBITDA in 2025 and beyond
• Expected free cash flow inflection point could lead to increased dividends, stock repurchases, and debt reduction, potentially doubling stock value in two years based on projected 2026 estimates

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• LG CNS (LGCNSZ KS) is looking to raise around US$850m in its upcoming Korea IPO.
• LG CNS is a South Korean information technology company. The firm primarily provides comprehensive digital transformation services and solutions backed AI, big data, and cloud.
• In a previous note, we looked at the firm’s past performance. In this note, we undertake a peer comparison.

• German government approves financing for TSMC’s fab in Dresden, boosting semiconductor production in Europe.
• Kaynes Semi secures anchor customer in power electronics, bolstering its position in the market.
• Suchi Semicon opens Gujarat’s first OSAT facility; Google appoints new India head to advance AI technology.

• Since mid-November, share-price spreads have generally widened across European liquid universe of ordinary and preferred shares (10 have widened, 8 tightened, 1 unchanged) with few changes in the trends.
• The most notorious reversal has been Telecom Italia. Recommended trades long preferred / short ordinary shares: Atlas Copco, Grifols SA, Media-for-Europe.
• Recommended trades long ordinary / short preferred shares: Carlsberg, Henkel, SSAB Svenska Stal, Telecom Italia.