In today’s briefing:
- Select Sector Indices and S&P Equal Weight Rebalance: US$16bn Trade; More Buying for APO and WDAY
- Intel Ex-CEO Calls For 24 Hours Of Prayer & Fasting For Intel’s Remaining 100k Employees
- EQD | Hong Kong Single Stock Options Weekly Dec 02 – 06
- EQD | Hong Kong Index Options Weekly – HSI and HSCEI Dec 02-06, Sell HSCEI Vol
- Tech Supply Chain Tracker (10-Dec-2024): LGES buys GM’s plant post-Trump win.
- What’s New(s) in Amsterdam – 9 December (ASM International | ASML Holding | BE Semiconductor Industries | Black Friday/Sinterklaas update)
- QuantumPharm US$750m Lockup Expiry – Financial Investors Checked 35% of Stock into CCASS
- ServiceTitan Valuation Analysis: Attractive First-Day Return, Initial Price Range: $52.00-$57.00
- Highwire Capital’s Acquisition of SPAR Group Faces Uncertainty Amid Financing Issues and Founder Stock Sales
Select Sector Indices and S&P Equal Weight Rebalance: US$16bn Trade; More Buying for APO and WDAY
- Constituent changes to the S&P 500 INDEX and capping changes will result in a round-trip trade of US$15.9bn across the Select Sector indices and the S&P500 Equal Weight Index.
- The Select Sector index trackers and S&P 500 Equal Weight trackers will need to buy Apollo Global Management and Workday, adding to the buying from S&P 500 INDEX trackers.
- The flows will change over the next week as stock prices move around and final capping is done after the close on 13 December.
Intel Ex-CEO Calls For 24 Hours Of Prayer & Fasting For Intel’s Remaining 100k Employees
- Pat Gelsinger took to X to invite us to join him in 24 hours of “praying and fasting” for Intel’s 100k employees to help them navigate “this difficult period”
- This is an unprecedented move never before seen in the semiconductor world, albeit we suspect that IBM may have dabbled in something similar to resurrect their 2nm process prowess
- This coming Thursday is the proposed date. Don’t expect miracles, this could take until the following Monday for the full impact to manifest itself in terms of share price appreciation
EQD | Hong Kong Single Stock Options Weekly Dec 02 – 06
- Strong price action across the market this week coupled with implied vols having caught down to historic vols has put a floor on implied vols.
- Tencent sees strong call buying in December 410 and 420 Calls with month end 400 strike Put buying for December and January.
- Cathay Pacific, +21% over past 3 weeks, HSBC, at 52-week high plus up 38% on the year and BABA, down 21% from Oct 02 high all active names.
EQD | Hong Kong Index Options Weekly – HSI and HSCEI Dec 02-06, Sell HSCEI Vol
- Although vols have stabilized this week both HSI and HSCEI are still trading about 3-4 vol above where they were pre-stimulus and are still not monetizing.
- Strong price action this wek helped keep a floor under implied vols.
- Positions were added in both HSI and HSCEI with demand tilted towards up-strike Calls given the rally on the week.
Tech Supply Chain Tracker (10-Dec-2024): LGES buys GM’s plant post-Trump win.
- LGES takes over GM battery plant in response to Trump’s win, expanding its presence in the US market.
- India establishes a sovereign AI ecosystem, driving ambitions forward for technological advancements in the country.
- Samsung’s One UI 7 Beta introduces AI enhancements and improved security features in anticipation of the Galaxy S25 release.
What’s New(s) in Amsterdam – 9 December (ASM International | ASML Holding | BE Semiconductor Industries | Black Friday/Sinterklaas update)
- In this edition: • ASM International / ASML Holding / BE Semiconductor Industries | brightened outlook for semiconductor equipment sales • Black Friday/Sinterklaas update | fewer debit card payments during Sinterklaas week
QuantumPharm US$750m Lockup Expiry – Financial Investors Checked 35% of Stock into CCASS
- QuantumPharm (2228 HK) listed in Hong Kong after raising US$126m towards the bottom end of its IPO price range. Its six-month lockup will expire on 12th Dec 2024.
- QuantumPharm is a R&D platform, utilizing quantum physics-based first-principles calculation, advanced AI, high-performance cloud computing, and scalable and standardized robotic automation to provide drug and material science R&D solutions.
- In this note, we will talk about the lock-up dynamics and updates since our last note.
ServiceTitan Valuation Analysis: Attractive First-Day Return, Initial Price Range: $52.00-$57.00
- ServiceTitan, a founder-led market leader for trades businesses in the United States and Canada, is expected to IPO this week.
- The company’s amended S-1 puts the initial price range per share at $52.00 to $57.00, implying a market cap of roughly $5B at the midpoint.
- I have a positive view of upcoming ServiceTitan IPO and expect an attractive first trading-day return. The stock will begin trading on the Nasdaq on Thursday.
Highwire Capital’s Acquisition of SPAR Group Faces Uncertainty Amid Financing Issues and Founder Stock Sales
- Highwire Capital’s $2.50/share offer for SGRP is 60% higher than previous bids, raising concerns about financing.
- Founders William Bartels and Robert Brown sold significant SGRP shares below offer price, undermining confidence in the transaction.
- SGRP’s stagnant business faces challenges with declining EBITDA margins and volatile free cash flow, impacting valuation.
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