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

Quiddity Advisors

Event-Driven

<ul>
<li>Today <a href="https://www.smartkarma.com/entities/bunka-shutter-co-ltd" target="_blank" data-smartkarma-citation="entities:5903:1" rel="noopener">Bunka Shutter (5930 JP)</a> reported iffy, if predictably seasonal Q1 earnings, and FY22 forecasts. They also announced a big buyback which caused the stock to pop, then come back.</li>
<li>It came back because the stock has a decently large slightly in-the-money CB with 13 months to maturity. A big pop will get a big re-hedge.</li>
<li>Over the next year, despite the large buyback, EPS accretion and net buyback flow impact should be minimal. And the stock isn't as cheap as it "looks."</li>
</ul>


Today Bunka Shutter (5930 JP) reported iffy, if predictably seasonal Q1 earnings, and FY22 forecasts. They also announced a big buyback which caused the stock to pop, then come back.
It came back because the stock has a decently large slightly in-the-money CB with 13 months to maturity. A big pop will get a big re-hedge.
Over the next year, despite the large buyback, EPS accretion and net buyback flow impact should be minimal. And the stock isn't as cheap as it "looks."


Bunka Shutter (5930 JP) - Big Buyback Vs Big CB Means No Accretion, Minimal Flow Impact