Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

I investigate special situations, pairs, and index rebalancing trades in Korea.

Korea / Special Sits, Pairs, Index Rebalancing

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Event-Driven

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<li>
<a href="https://www.smartkarma.com/entities/18095" target="_blank" data-smartkarma-citation="entities:18095:1">Daelim Industrial (000210 KS)</a> is one of the main targets of local activist movement. This makes a setting for higher dividends. Common div yield to 1.58% and Pref to 4.18%. Difference is 2.59%p. This is the widest gap in many years.</li>
<li>Pref is currently at a 60.89% discount to Common. Among those &gt; ₩100bil MC prefs, it is the second highest discounted pref, only behind CJ Cheiljedang 1P (097955 KS). Local street expects at least ₩1,600 div per share. This should be a conservative estimate. On a 20D MA, Pref is above +1 σ.</li>
<li>Dec 26 is record date of dividend payout. I expect a price catchup movement tomorrow in favor of Pref. I'd go long Pref and short Common as early in the morning as possible.</li>
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Daelim Industrial (000210 KS) is one of the main targets of local activist movement. This makes a setting for higher dividends. Common div yield to 1.58% and Pref to 4.18%. Difference is 2.59%p. This is the widest gap in many years.
Pref is currently at a 60.89% discount to Common. Among those &gt; ₩100bil MC prefs, it is the second highest discounted pref, only behind CJ Cheiljedang 1P (097955 KS). Local street expects at least ₩1,600 div per share. This should be a conservative estimate. On a 20D MA, Pref is above +1 σ.
Dec 26 is record date of dividend payout. I expect a price catchup movement tomorrow in favor of Pref. I'd go long Pref and short Common as early in the morning as possible.


Daelim Industrial Share Class: One of Prefs to Arb Trade on Div Payout Record Date

DL Holdings Co

Daelim Industrial Share Class: One of Prefs to Arb Trade on Div Payout Record Date