Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

HK Type 4 license through Ballingal Investment Advisors Ltd. ("BIA" or "BIAL")

BACKGROUND
I have 20+yrs experience in Asia doing alternative strategies (i.e. non-delta1 non long-only) in fixed income, equity derivatives, and activist/catalyst/event-driven and long-short equity strategies with most of that time spent managing money. 

4 years in fixed income macro, 8 years running internal hedge fund and 4yrs investment banking at Citi in Japan, 3 years running an Asia multi-strat portfolio at a hedge fund, 4+yrs as an independent special situations analyst.

Pan-Asia Catalysts/Events

Event-Driven

When Sinomedia's chairman and founder's companies announced June 11th of this year they were going to sell their 53.4% of shares in Sinomedia (623 HK) to an "Independent Third Party", <a href="http://www.smartkarma.com/insight_providers/12" target="_blank">Jon Foster</a> and I had a chat to hash out why.We didn't like what we saw, at all, and Jon wrote a piece on it titled <a href="http://www.smartkarma.com/insights/if-it-looks-like-a-duck-and-quacks-like-a-duck-caveat-emptor" target="_blank">If it Looks Like a Duck and Quacks like a Duck, Caveat Emptor.</a>This deal duck is now dead. It is an ex-duck. Those interested in buying bombed out stocks would do well to look at the financial results released Wednesday. There is some weird stuff in there which doesn't jive internally with what they say elsewhere and doesn't jive with the way the rest of their market is headed. Advertising revenue dropped 26%. Integrated Brand Communications Services revenue dropped 43%, or 100%. I am not clear which. Internet Media &amp; Content Revenue dropped 63%. And the content of their Financial Summary and Outlook does not instill confidence in any way.Furthermore, the buyback conducted Thursday and Friday saw the company buy back more than 50% of the volume on each day, and the stock rallied very hard in the closing minutes to close down a total of 1% across those two days, despite horrific earnings and horrific markets elsewhere. I still wouldn't touch it. More below the fold...

When Sinomedia's chairman and founder's companies announced June 11th of this year they were going to sell their 53.4% of shares in Sinomedia (623 HK) to an "Independent Third Party", Jon Foster and I had a chat to hash out why.We didn't like what we saw, at all, and Jon wrote a piece on it titled If it Looks Like a Duck and Quacks like a Duck, Caveat Emptor.This deal duck is now dead. It is an ex-duck. Those interested in buying bombed out stocks would do well to look at the financial results released Wednesday. There is some weird stuff in there which doesn't jive internally with what they say elsewhere and doesn't jive with the way the rest of their market is headed. Advertising revenue dropped 26%. Integrated Brand Communications Services revenue dropped 43%, or 100%. I am not clear which. Internet Media &amp; Content Revenue dropped 63%. And the content of their Financial Summary and Outlook does not instill confidence in any way.Furthermore, the buyback conducted Thursday and Friday saw the company buy back more than 50% of the volume on each day, and the stock rallied very hard in the closing minutes to close down a total of 1% across those two days, despite horrific earnings and horrific markets elsewhere. I still wouldn't touch it. More below the fold...

Requiem for a Duck - Looked, Quacked, Caveated, Dead - STILL CAVEAT EMPTOR. 

Sinomedia Holding

Requiem for a Duck - Looked, Quacked, Caveated, Dead - STILL CAVEAT EMPTOR.