In today’s briefing:
- China Rebalances at the Close Today- BIG Flows
- Infosys (INFY)’s US$1.1bn Buyback
- Nitro Software (NTO AU): Potentia Raises to A$2.00 as the Battle Heats Up
- Singapore-Based Glints Lays off 18% of Employees
- Targetable Names on KOSPI for Dividend Arbitrage: DPS Estimates & Current Basis
- Nitro Software: Potentia Matches KKR’s $2.00/Offer
- Elastic NV: Improvements To The Elastic Search Platform & Other Drivers
- What Is ChatGPT and What Does It Bring to the Table?
- PagerDuty Inc: Major Drivers
- Ambarella Inc: Major Drivers
China Rebalances at the Close Today- BIG Flows
- There are multiple local China indices that rebalance at the close of trading today. Plus MSCI China and FTSE All-World/All-Cap flows due to changes to the Northbound StockConnect Buy-and-Sell list.
- China Pacific Insurance (Group) Co., (601601 CH) replaces Beijing-Shanghai High Speed Railway-A (601816 CH) in the FTSE China A50 Index (XIN9I INDEX).
- The round-trip turnover at the close of trading today should be in excess of US$8bn.
Infosys (INFY)’s US$1.1bn Buyback
- Infosys Ltd (INFO IN) (Infosys Ltd Sp Adr (INFY US)) on 5-6 December announced an on-market buyback of more than US$1.1bn.
- The company has done buybacks before, and it is worthwhile looking at the details.
- The buy-back looks small, and may be impactful near-term in near-space.
Nitro Software (NTO AU): Potentia Raises to A$2.00 as the Battle Heats Up
- Nitro Software Ltd (NTO AU) has received a revised Potentia off-market takeover offer at A$2.00 per share, an 11.1% premium to its previous offer and in line with Alludo’s offer.
- By bumping its offer, adding a scrip alternative and signalling a potentially higher price on due diligence access, Potentia has ramped up the pressure on the Board.
- Potentia/Alludo offer remains at the low end of the IE’s valuation range. Alludo would have anticipated this move and likely will have factored in the need to raise its offer.
Singapore-Based Glints Lays off 18% of Employees
Glints, a Singapore-based careers platform, is laying off employees “based on market conditions and business priorities,” the firm’s co-founder Oswald Yeo said in his address to staff.
- The development comes after the startup raised US$50 million in a series D funding round in August.
- In the same month, the firm claimed that its annual revenue and gross profits grew 2.5x over the past 12 months.
Targetable Names on KOSPI for Dividend Arbitrage: DPS Estimates & Current Basis
- Targetable names on KOSPI for dividend arbitrage: SK Telecom (017670), Woori Financial (316140), SK Hynix (000660), KB Financial (105560), Korea Zinc (010130), and HMM (011200)
- Samsung Electronics (005930)‘ basis does not reflect special dividends, even though speculations have not disappeared entirely.
- As the current basis hasn’t widened to an entirely sufficient level, we need to target arb trade openings focusing on the above stocks a bit more aggressively.
Nitro Software: Potentia Matches KKR’s $2.00/Offer
- Potentia Capital has bumped its Offer for Nitro Software Ltd (NTO AU) to A$2.00/share, matching KKR’s earlier Offer.
- Potential’s proposal – which also boasts a scrip alternative for those investors wishing to remain invested – is open for tendering, and has no minimum acceptance threshold.
- Nitro’s board has yet to provide a view on Potentia’s revised terms.
Elastic NV: Improvements To The Elastic Search Platform & Other Drivers
- Elastic NV managed to deliver an all-around beat in the last result as it continues making progress across innovation.
- The company has recently announced innovations over the Elastic Search platform, the prominent data analytics platform for search-powered solutions for transforming the way organizations observe, search, and protect their data.
- This quarter, Elastic expanded business with RDD, the leading supply chain, print, packaging, and marketing solutions provider.
What Is ChatGPT and What Does It Bring to the Table?
- OpenAI, a US-based AI firm set up by Elon Musk and Sam Altman, released the preview version of a chatbot model called ChatGPT (Chat Generative Pre-Training).
Immediately, the model took the internet world by storm, as the chatbot produced accurate, human-like answers (most of the time) to questions and commands.
- In a nutshell, the model was trained using a form of supervised fine-tuning called reinforcement learning from human feedback (RLHF).
PagerDuty Inc: Major Drivers
- PagerDuty performed well in the last quarter despite the relatively uncertain environment and delivered an all-around beat.
- The company saw a good performance in financial services, tech retail, and other verticals.
- Total paid and free customers on its platform grew, and consumers continued to adopt more products and services and expand users.
Ambarella Inc: Major Drivers
- In this quarter, Ambarella experienced material headwinds from the industry-wide semiconductor cyclical downturn.
- Also, the content in the products of the customers continues to rise as it leveraged its historical success with optimized processing for high bandwidth sensing.
- We provide the stock of Ambarella with a ‘Hold’ rating with a revision in the target price.
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