Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Nearly 25 years of experience in analyzing hundreds of companies, especially in Asia. Deep expertise in the following sectors:
- Technology (E-commerce, SaaS, Internet)
- Consumer 
- Special Situations/Deep Value Plays
- Holdcos/Stubs
- Asian Unicorns/Private Companies

Korea/Asia, Events, IPOs

LG Chem & LG Energy LONG/SHORT Pair Trading on a Massive NAV Discount

LG Energy Solution: Short-Term Flow Crunch & Block Deal Possibility

KOSPI200 Lockup Release Events: LG Energy Solution, HYBE, Lotte Chilsung, & Krafton

LG Chem - Major Highlights of 3Q 2021 Earnings & A New CEO for LG Energy Solution

LG Energy Solution: End of the One Month Lock Up Period & More Selling Likely Ahead

LG Energy Solution: End of the 3 Months Lock Up Period, Higher Short Selling, & JV with Stellantis

Battle Lines Drawn As BABA Builds Out First/Last-Mile Capacity; But Who Will Fund 75+ Bn CNY CapEx?

Equity Bottom-Up

<ul>
<li>We believe there is an attractive pair trade of going long on LG Chem and going short on LG Energy Solution at current levels. </li>
<li>Main reasons why we like this pair trade include large shares that could be sold after 6 months lockup for LGES, LG Chem's attractive valuation, and shift to value stocks.</li>
<li>In the past one month, LG Energy Solution is down 5.3% whereas LG Chem is up 2.4%. We believe this gap could widen in the next several months. </li>
</ul>


We believe there is an attractive pair trade of going long on LG Chem and going short on LG Energy Solution at current levels. 
Main reasons why we like this pair trade include large shares that could be sold after 6 months lockup for LGES, LG Chem's attractive valuation, and shift to value stocks.
In the past one month, LG Energy Solution is down 5.3% whereas LG Chem is up 2.4%. We believe this gap could widen in the next several months. 


A Pair Trade Between LG Chem & LG Energy Solution