In today’s briefing:
- Olam’s Demerger: The Sum Is Probably Greater Than The Whole
- HUGE Suruga Bank (8358 JP) Buyback
- Combined Rebalancing Flow Estimations of Three Indexes in Korea on March 10
- Japan Post Holdings – Gaming Out a Five Bagger
- Dragon Crown (935 HK): Offer Open To Acceptances
- ActivistTalk: The Activist Excitement Surrounding Bed, Bath & Beyond Could Be Short-Lived This Time
Olam’s Demerger: The Sum Is Probably Greater Than The Whole
- The High Court of Singapore has now sanctioned the proposed restructuring of Olam International (OLAM SP) and the proposed listing of OFI Group.
- Entitlement in respect of the Scheme will close on the 11 March. The last day of trading is the 9 March. The listing of OFI is expected in the 2Q22.
- With many grain/agri prices touching record highs amid war in Ukraine, boasting an upstream supply is not a bad thing. But the timing of OFI’s listing could work both ways.
HUGE Suruga Bank (8358 JP) Buyback
- In 2018, Suruga Bank got itself in trouble, the shares fell 80% or more in a year-plus. In 2019 they took a big hit, and the Okano family sold out.
- Nojima Corp (7419 JP) bought the shares -85% from the peak. Now they are selling those shares, plus the ones they already owned. Down nearly 10% from where they bought.
- This is an instant 15+% boost to BVPS and 22+% boost to EPS. That’s great. But that may be where greatness stops.
Combined Rebalancing Flow Estimations of Three Indexes in Korea on March 10
- Three local indexes in Korea face rebalancing trading on March 10, supposedly at the close.
- They are 1. KOSPI 200 Fast Entry for LG Energy Solution, 2. KOSPI Size Index Series biannual rebalancing, and 3. KRX BBIG K-New Deal biannual rebalancing.
- There are 18 stocks in total, which have an estimated passive flow of ±0.5x ADTV & an average daily trade value of +₩5.0B.
Japan Post Holdings – Gaming Out a Five Bagger
- We have articulated why we believe Japan Post Bank and Japan Post Insurance could have 100%+ upside.
- We further believe that Japan Post Holdings also offers very significant upside potential.
- His comes not just from its subsidiaries’ performance but also improvements in post office profitability and shrinking of the holdco discount.
Dragon Crown (935 HK): Offer Open To Acceptances
- The Composite Document detailing the Conditional Voluntary General Offer for liquid chemical storage and handling outfit Dragon Crown Group (935 HK) (DCG) is now out.
- The Offer Price is HK$1.28/share. The Offer is conditional on 90% acceptance, with 86.91% in the bag.
- This will probably turn unconditional next week. Trading tight to term.
ActivistTalk: The Activist Excitement Surrounding Bed, Bath & Beyond Could Be Short-Lived This Time
- BBBY’s slower than hoped for turnaround has caught the attention of another activist, GameStop (GME US) Chairman Ryan Cohen’s RC Ventures
- Cohen is urging BBBY to spin-off its outperforming buy buy BABY business or sell BBBY as is outright in a Go-Private transaction
- With the long-term impact of the latest development uncertain, the boost already given to the shares may prove short-lived leaving additional share price strength an even better reason to exit
Before it’s here, it’s on Smartkarma
