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

Jcontentree Rights Offering: First Round Pricing Summary

Event-Driven

<a href="https://www.smartkarma.com/entities/12711" target="_blank" data-smartkarma-citation="entities:12711:1">Jcontentree Corp (036420 KS)</a> got short selling restriction today (July 31). Below is the regulatory filing about this at KIND.<div class="content-caption">(<a href="http://kind.krx.co.kr/common/disclsviewer.do?method=search&amp;acptno=20180730000600&amp;docno=&amp;viewerhost=&amp;viewerport=" target="_blank">Jcontentree short selling restriction regulatory filing</a> - source: KIND)</div><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/059/309/original/2.png?1532997141" class="editor-image img-responsive" data-smartkarma-image-id="59309"></figure>As shown below, Type 1 was applied to Jcontentree. All of the three conditions for Type 1 were met on July 30.<table class="table table-striped"><tbody>
<tr><td colspan="2" style="width: 769px;">Short selling restriction criteria for KOSDAQ-listed stocks</td></tr>
<tr>
<td style="width: 284.7375183105469px;">Type 1</td>
<td style="width: 484.2624816894531px;"><ul>
<li>Short selling %: 12% or higher</li>
<li>Daily price Δ: 5 - 10%</li>
<li>Short selling increase compared with 40 day avg.: 500% or higher</li>
</ul></td>
</tr>
<tr>
<td style="width: 284.7375183105469px;">Type 2</td>
<td style="width: 484.2624816894531px;"><ul>
<li>Daily price Δ: 10% or higher</li>
<li>Short selling increase compared with 40 day avg.: 500% or higher</li>
</ul></td>
</tr>
<tr>
<td style="width: 284.7375183105469px;">Type 3</td>
<td style="width: 484.2624816894531px;"><ul>
<li>Short selling increase compared with 40 day avg.: 500% or higher</li>
<li>40-day short selling avg. %: 5% or higher</li>
</ul></td>
</tr>
<tr><td colspan="2" style="width: 769px;">Source: KRX</td></tr>
</tbody></table><table class="table table-striped"><tbody>
<tr><td colspan="3" style="width: 1213px;">Jcontentree on July 30</td></tr>
<tr>
<td style="width: 562px;">1. Short selling %</td>
<td style="text-align: right; width: 306.07501220703125px;">31.03%</td>
<td style="text-align: right; width: 344.92498779296875px;">12% or higher → Yes</td>
</tr>
<tr>
<td style="width: 562px;">2. Daily price Δ</td>
<td style="text-align: right; width: 306.07501220703125px;">-5.99%</td>
<td style="text-align: right; width: 344.92498779296875px;">5 - 10% → Yes</td>
</tr>
<tr>
<td style="width: 562px;">3. Short selling increase compared with 40 day avg.</td>
<td style="text-align: right; width: 306.07501220703125px;">659.8%</td>
<td style="text-align: right; width: 344.92498779296875px;">500% or higher → Yes</td>
</tr>
<tr>
<td style="width: 562px;"> - 40 day average short selling volume</td>
<td style="text-align: right; width: 306.07501220703125px;">96,044</td>
<td style="text-align: right; width: 344.92498779296875px;">-</td>
</tr>
<tr>
<td style="width: 562px;"> - July 30 short selling volume</td>
<td style="text-align: right; width: 306.07501220703125px;">633,742</td>
<td style="text-align: right; width: 344.92498779296875px;">-</td>
</tr>
<tr><td colspan="3" style="width: 1213px;">Source: KRX</td></tr>
</tbody></table>Jcontentree suddenly had a burst in short selling yesterday on July 30. Short selling % (in terms of volume) reached 31.03%, an extremely high level which we haven't seen for a long time. Daily short selling volume on this day reached 633,742 shares. Again this is an extremely high level for Jcontentree, which we haven't seen for a very very long time.<table class="table table-striped"><tbody>
<tr>
<td>Date</td>
<td style="text-align: right;">Short selling volume</td>
<td style="text-align: right;">Total trade volume</td>
<td style="text-align: right;">Short selling %</td>
<td style="text-align: right;">Short selling value (₩)</td>
<td style="text-align: right;">Total trade value (₩)</td>
<td style="text-align: right;">Short selling %</td>
</tr>
<tr>
<td>2018/07/30</td>
<td style="text-align: right;">633,742</td>
<td style="text-align: right;">2,042,341</td>
<td style="text-align: right;">31.03</td>
<td style="text-align: right;">3,894,859,460</td>
<td style="text-align: right;">12,583,445,650</td>
<td style="text-align: right;">30.95</td>
</tr>
<tr><td colspan="7"><hr></td></tr>
<tr>
<td>2018/07/27</td>
<td style="text-align: right;">60,641</td>
<td style="text-align: right;">1,068,031</td>
<td style="text-align: right;">5.68</td>
<td style="text-align: right;">393,725,270</td>
<td style="text-align: right;">6,868,681,340</td>
<td style="text-align: right;">5.73</td>
</tr>
<tr>
<td>2018/07/26</td>
<td style="text-align: right;">46,901</td>
<td style="text-align: right;">1,595,285</td>
<td style="text-align: right;">2.94</td>
<td style="text-align: right;">291,593,100</td>
<td style="text-align: right;">9,891,878,950</td>
<td style="text-align: right;">2.95</td>
</tr>
<tr>
<td>2018/07/25</td>
<td style="text-align: right;">114,178</td>
<td style="text-align: right;">1,431,861</td>
<td style="text-align: right;">7.97</td>
<td style="text-align: right;">661,607,850</td>
<td style="text-align: right;">8,346,308,490</td>
<td style="text-align: right;">7.93</td>
</tr>
<tr>
<td>2018/07/24</td>
<td style="text-align: right;">49,336</td>
<td style="text-align: right;">1,261,756</td>
<td style="text-align: right;">3.91</td>
<td style="text-align: right;">290,435,620</td>
<td style="text-align: right;">7,384,801,170</td>
<td style="text-align: right;">3.93</td>
</tr>
<tr>
<td>2018/07/23</td>
<td style="text-align: right;">77,839</td>
<td style="text-align: right;">1,828,810</td>
<td style="text-align: right;">4.26</td>
<td style="text-align: right;">455,685,480</td>
<td style="text-align: right;">10,776,255,180</td>
<td style="text-align: right;">4.23</td>
</tr>
<tr>
<td>2018/07/20</td>
<td style="text-align: right;">61,573</td>
<td style="text-align: right;">942,460</td>
<td style="text-align: right;">6.53</td>
<td style="text-align: right;">383,419,830</td>
<td style="text-align: right;">5,863,166,880</td>
<td style="text-align: right;">6.54</td>
</tr>
<tr>
<td>2018/07/19</td>
<td style="text-align: right;">73,498</td>
<td style="text-align: right;">3,331,706</td>
<td style="text-align: right;">2.21</td>
<td style="text-align: right;">461,819,500</td>
<td style="text-align: right;">20,723,923,860</td>
<td style="text-align: right;">2.23</td>
</tr>
<tr>
<td>2018/07/18</td>
<td style="text-align: right;">5,239</td>
<td style="text-align: right;">3,588,421</td>
<td style="text-align: right;">0.15</td>
<td style="text-align: right;">35,676,470</td>
<td style="text-align: right;">24,411,643,050</td>
<td style="text-align: right;">0.15</td>
</tr>
<tr>
<td>2018/07/17</td>
<td style="text-align: right;">100,425</td>
<td style="text-align: right;">2,599,287</td>
<td style="text-align: right;">3.86</td>
<td style="text-align: right;">721,691,370</td>
<td style="text-align: right;">18,839,806,860</td>
<td style="text-align: right;">3.83</td>
</tr>
<tr>
<td>2018/07/16</td>
<td style="text-align: right;">87</td>
<td style="text-align: right;">2,069,593</td>
<td style="text-align: right;">0.00</td>
<td style="text-align: right;">635,820</td>
<td style="text-align: right;">15,285,031,530</td>
<td style="text-align: right;">0.00</td>
</tr>
<tr>
<td>2018/07/13</td>
<td style="text-align: right;">1,805</td>
<td style="text-align: right;">1,932,261</td>
<td style="text-align: right;">0.09</td>
<td style="text-align: right;">13,043,120</td>
<td style="text-align: right;">13,992,307,260</td>
<td style="text-align: right;">0.09</td>
</tr>
<tr>
<td>2018/07/12</td>
<td style="text-align: right;">19,594</td>
<td style="text-align: right;">4,187,089</td>
<td style="text-align: right;">0.47</td>
<td style="text-align: right;">138,624,520</td>
<td style="text-align: right;">29,377,896,740</td>
<td style="text-align: right;">0.47</td>
</tr>
<tr>
<td>2018/07/11</td>
<td style="text-align: right;">1,912</td>
<td style="text-align: right;">680,182</td>
<td style="text-align: right;">0.28</td>
<td style="text-align: right;">12,753,960</td>
<td style="text-align: right;">4,519,396,620</td>
<td style="text-align: right;">0.28</td>
</tr>
<tr>
<td>2018/07/10</td>
<td style="text-align: right;">12,803</td>
<td style="text-align: right;">1,581,666</td>
<td style="text-align: right;">0.81</td>
<td style="text-align: right;">84,990,790</td>
<td style="text-align: right;">10,500,790,290</td>
<td style="text-align: right;">0.81</td>
</tr>
<tr>
<td>2018/07/09</td>
<td style="text-align: right;">262,519</td>
<td style="text-align: right;">2,244,410</td>
<td style="text-align: right;">11.70</td>
<td style="text-align: right;">1,783,544,910</td>
<td style="text-align: right;">15,218,074,760</td>
<td style="text-align: right;">11.72</td>
</tr>
<tr>
<td>2018/07/06</td>
<td style="text-align: right;">70,284</td>
<td style="text-align: right;">3,136,818</td>
<td style="text-align: right;">2.24</td>
<td style="text-align: right;">482,817,970</td>
<td style="text-align: right;">21,621,004,160</td>
<td style="text-align: right;">2.23</td>
</tr>
<tr>
<td>2018/07/05</td>
<td style="text-align: right;">51,530</td>
<td style="text-align: right;">1,849,464</td>
<td style="text-align: right;">2.79</td>
<td style="text-align: right;">370,466,700</td>
<td style="text-align: right;">13,335,087,450</td>
<td style="text-align: right;">2.78</td>
</tr>
<tr>
<td>2018/07/04</td>
<td style="text-align: right;">53,764</td>
<td style="text-align: right;">2,205,079</td>
<td style="text-align: right;">2.44</td>
<td style="text-align: right;">381,252,530</td>
<td style="text-align: right;">15,646,107,540</td>
<td style="text-align: right;">2.44</td>
</tr>
<tr>
<td>2018/07/03</td>
<td style="text-align: right;">518,235</td>
<td style="text-align: right;">7,163,564</td>
<td style="text-align: right;">7.23</td>
<td style="text-align: right;">3,655,660,030</td>
<td style="text-align: right;">50,487,988,350</td>
<td style="text-align: right;">7.24</td>
</tr>
<tr>
<td>2018/07/02</td>
<td style="text-align: right;">290,727</td>
<td style="text-align: right;">6,602,542</td>
<td style="text-align: right;">4.40</td>
<td style="text-align: right;">1,954,663,580</td>
<td style="text-align: right;">44,280,332,120</td>
<td style="text-align: right;">4.41</td>
</tr>
<tr><td colspan="7">Source: KRX</td></tr>
</tbody></table>

Jcontentree Corp (036420 KS) got short selling restriction today (July 31). Below is the regulatory filing about this at KIND.(Jcontentree short selling restriction regulatory filing - source: KIND)As shown below, Type 1 was applied to Jcontentree. All of the three conditions for Type 1 were met on July 30.
Short selling restriction criteria for KOSDAQ-listed stocks

Type 1

Short selling %: 12% or higher
Daily price Δ: 5 - 10%
Short selling increase compared with 40 day avg.: 500% or higher



Type 2

Daily price Δ: 10% or higher
Short selling increase compared with 40 day avg.: 500% or higher



Type 3

Short selling increase compared with 40 day avg.: 500% or higher
40-day short selling avg. %: 5% or higher


Source: KRX

Jcontentree on July 30

1. Short selling %
31.03%
12% or higher → Yes


2. Daily price Δ
-5.99%
5 - 10% → Yes


3. Short selling increase compared with 40 day avg.
659.8%
500% or higher → Yes


 - 40 day average short selling volume
96,044
-


 - July 30 short selling volume
633,742
-

Source: KRX
Jcontentree suddenly had a burst in short selling yesterday on July 30. Short selling % (in terms of volume) reached 31.03%, an extremely high level which we haven't seen for a long time. Daily short selling volume on this day reached 633,742 shares. Again this is an extremely high level for Jcontentree, which we haven't seen for a very very long time.

Date
Short selling volume
Total trade volume
Short selling %
Short selling value (₩)
Total trade value (₩)
Short selling %


2018/07/30
633,742
2,042,341
31.03
3,894,859,460
12,583,445,650
30.95



2018/07/27
60,641
1,068,031
5.68
393,725,270
6,868,681,340
5.73


2018/07/26
46,901
1,595,285
2.94
291,593,100
9,891,878,950
2.95


2018/07/25
114,178
1,431,861
7.97
661,607,850
8,346,308,490
7.93


2018/07/24
49,336
1,261,756
3.91
290,435,620
7,384,801,170
3.93


2018/07/23
77,839
1,828,810
4.26
455,685,480
10,776,255,180
4.23


2018/07/20
61,573
942,460
6.53
383,419,830
5,863,166,880
6.54


2018/07/19
73,498
3,331,706
2.21
461,819,500
20,723,923,860
2.23


2018/07/18
5,239
3,588,421
0.15
35,676,470
24,411,643,050
0.15


2018/07/17
100,425
2,599,287
3.86
721,691,370
18,839,806,860
3.83


2018/07/16
87
2,069,593
0.00
635,820
15,285,031,530
0.00


2018/07/13
1,805
1,932,261
0.09
13,043,120
13,992,307,260
0.09


2018/07/12
19,594
4,187,089
0.47
138,624,520
29,377,896,740
0.47


2018/07/11
1,912
680,182
0.28
12,753,960
4,519,396,620
0.28


2018/07/10
12,803
1,581,666
0.81
84,990,790
10,500,790,290
0.81


2018/07/09
262,519
2,244,410
11.70
1,783,544,910
15,218,074,760
11.72


2018/07/06
70,284
3,136,818
2.24
482,817,970
21,621,004,160
2.23


2018/07/05
51,530
1,849,464
2.79
370,466,700
13,335,087,450
2.78


2018/07/04
53,764
2,205,079
2.44
381,252,530
15,646,107,540
2.44


2018/07/03
518,235
7,163,564
7.23
3,655,660,030
50,487,988,350
7.24


2018/07/02
290,727
6,602,542
4.40
1,954,663,580
44,280,332,120
4.41

Source: KRX


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