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

Hansae Holdco/Sub Trade: Huge Divergence Now, Sub Price Rally Should Be Resisted Here

Event-Driven

Hansae Yes24 Holdings Co, Ltd. / Event-Driven

Hansae Yes24 Holdings Co, Ltd. (016450 KS)

<ul>
<li>
<a href="https://www.smartkarma.com/entities/8636" target="_blank" data-smartkarma-citation="entities:8636:1">Hansae Yes24 Holdings Co, Ltd. (016450 KS)</a> is a small cap holdco stock in Korea. <a href="https://www.smartkarma.com/entities/16529" target="_blank" data-smartkarma-citation="entities:16529:1">Hansae Co Ltd (105630 KS)</a> takes up half of Holdco NAV. Sub is Korea's largest clothing OEM company. Holdco is currently at a 50% discount to NAV. This is the highest in 5 years. Discount was up nearly 10%p in the last 2 months.</li>
<li>Sub is taking a hit today. The share is down 5.56% now. Holdco is down only 1.21%. Macy's unpleasant guidance revision is pulling down Sub price. We are now a little above -1 σ on a 20D MA. Sub shares have rebounded lately with the expectation on improving margins in the US. But weak holiday sales numbers in the US would be more than enough to kiss off this expectation.</li>
<li>I'd initiate a stub trade even though the duo has narrowed the gap today. It is still a long way to get reverted back to where they were two months ago. </li>
</ul>



Hansae Yes24 Holdings Co, Ltd. (016450 KS) is a small cap holdco stock in Korea. Hansae Co Ltd (105630 KS) takes up half of Holdco NAV. Sub is Korea's largest clothing OEM company. Holdco is currently at a 50% discount to NAV. This is the highest in 5 years. Discount was up nearly 10%p in the last 2 months.
Sub is taking a hit today. The share is down 5.56% now. Holdco is down only 1.21%. Macy's unpleasant guidance revision is pulling down Sub price. We are now a little above -1 σ on a 20D MA. Sub shares have rebounded lately with the expectation on improving margins in the US. But weak holiday sales numbers in the US would be more than enough to kiss off this expectation.
I'd initiate a stub trade even though the duo has narrowed the gap today. It is still a long way to get reverted back to where they were two months ago. 


Hansae Yes24 Holdings Stub Trade: Macy's Lowered Guidance Will Revert Back 5Y High Holdco Discount