In today’s briefing:
- Vulcan Value Partners Q4 And Annual 2021 Letter
- GoTo Gojek Tokopedia IPO: Valuation Insights
- Meituan (3690 HK) 182 Rejection Level and Draw Down Buy Support
- ECM Weekly (20th Mar 2022) – JD.com, Tencent, Prosus, GoTo, Ferretti, Green Tea, Recbio, Abacus
- GreenWood Investors Fourth Quarter 2021 Letter
Vulcan Value Partners Q4 And Annual 2021 Letter
- We are value investors – business analysts with a long-term time horizon focused on purchasing publicly traded companies that are competitively entrenched at significant discounts to intrinsic worth.
- After very strong absolute and relative returns through the first nine months of the year, all of our investment strategies lagged their benchmarks during the fourth quarter.
- All of our portfolios are fully invested in world class businesses with stable values trading at a significant discount to intrinsic worth.
GoTo Gojek Tokopedia IPO: Valuation Insights
- GoTo (1379371D IJ) is the leading digital ecosystem in Southeast Asia. It seeking to raise up to $1.3 billion. Bookbuilding ends on 21 March.
- In GoTo Gojek Tokopedia IPO Initiation: Island Shopping, we noted that the fundamentals are mixed as the high growth is accompanied by ongoing losses and cash burn.
- Our valuation analysis suggests that the price range is aggressive and unattractive. We would give the IPO a pass.
Meituan (3690 HK) 182 Rejection Level and Draw Down Buy Support
- Meituan met the 104 macro buy support and short covering spike. 180 resistance to cap for a give back to let the dust settle and set up a fresh long.
- 180-182 resistance is where old price lows and the 38.2% retracement coincide and expected to induce a reaction lower.
- 200 and 222 intermediate barriers are in focus. Buy support below 142 lies near 120 on a steep give back sequence.
ECM Weekly (20th Mar 2022) – JD.com, Tencent, Prosus, GoTo, Ferretti, Green Tea, Recbio, Abacus
- Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
- GoTo (1379371D IJ) launched its bookbuild but decided to keep it local, with no international bookrunners.
- Placements continue to trickle in with Abacus Property (ABP AU) managing to raise US$150m odd. All eyes will be on JD.com Inc. (9618 HK) in the coming week.
GreenWood Investors Fourth Quarter 2021 Letter
- GreenWood Investors is a mostly-long, deep value investment firm focused on areas of extreme pessimism, structural inefficiencies and low competition.
- Our fourth quarter performance reflected a worldwide capitulation away from nearly everything except the large tech companies.
- We want to be optimized for both the short, medium and long-term, and seek rare investments that look attractive from all perspectives.
- We’ve given significant consideration to owning the big tech monopolies since 2012.
- We’ve been finding highly compelling short opportunities in addition to maintaining a high sense of urgency in sifting through the wreckage brought on by the most recent market turmoil.
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