In today’s briefing:
- Palantir – Little Early But Getting Interesting Again
- Korean Financial Authorities Tighten IPO Requirements for Institutional Investors
- Softbank Sells $1.0 Billion Additional Worth of Coupang: Continued Overhang Concerns
- HSI 18,100 a Big Level
- To Buy or not to Buy: Stock Splits?
- RBI directs PPBL to temporarily stop onboarding new customers
Palantir – Little Early But Getting Interesting Again
- We last wrote on Palantir over a year ago when we suggested stepping away given expiring lock-ups.
- The stock is down 58% since that call as it has sold off together with other unprofitable, high-growth names.
- However, we remain of the view that there is something to Palantir unlike many of its compatriots and Ark is now out…
Korean Financial Authorities Tighten IPO Requirements for Institutional Investors
- On 11 March, Korea Financial Investment Association (KFIA) announced that it will tighten IPO requirements for institutional investors.
- This is likely to further dampen the local IPO market in Korea which has been in the doldrums after the biggest-ever IPO in Korea LG Energy Solution two month ago.
- As a result of the change in the IPO requirements for institutional investors, this is likely to to negatively impact smaller investment funds without adequate amount of AUM.
Softbank Sells $1.0 Billion Additional Worth of Coupang: Continued Overhang Concerns
- On 14 March, it was reported that Softbank’s Vision Fund sold about 1.3 trillion won ($1.04 billion) worth of Coupang (CPNG US) shares on 9 March in a block deal.
- The continued selling of Coupang shares by Softbank suggests that Softbank is not confident on the future prospects of the company. We remain negative on Coupang.
- Another reason could be because Softbank needs to raise more cash to make up for the losses from its other investments (mainly Chinese tech companies).
HSI 18,100 a Big Level
- HSI sliced below the 19,600 projection with the next level at 18,450 and the big dual lows from 2012 and 2016 at 18,100 and a big level to hold.
- Sell volumes and sell momentum remain high, equating to more short term pain.
- HK tech index break below 4,000 support set to test key lows from 2018 and 2019 as the levels to hold to avert new chart lows.
To Buy or not to Buy: Stock Splits?
- Stock splits are all the rage – After Google announced in Feb that there would be a 20:1 stock split in July this year
- Amazon has followed suit announcing a similar 20:1 split and sending the market into a frenzy
- Amazon’s price was up by 6% the next day and Google’s stock rose more than 9% in after-market trading following the news
RBI directs PPBL to temporarily stop onboarding new customers
- RBI has directed Paytm Payments Bank (PPBL), an associate of One 97 Communications (OCL or Paytm), to temporarily halt onboarding of new customers, via a letter dated 11th Mar’22. The embargo will have an adverse impact on signing up users for new PPBL wallets or savings / current accounts, until further notice.
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