Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Nearly 30 years of experience in the Korean/Asian equity research. Major sectors coverage include the following:
- Technology 
- Consumer 
- Special Situations/Deep Value Plays
- Tender Offers/M&As
- Holdcos/Stubs
- Asian Unicorns/Private Companies

Korea/Asia, Events, IPOs

Samsung Electronics. A Bearish Investment Thesis.

A Pair Trade Idea Between SM Entertainment & YG Entertainment (Aka "The Drugstore")

Nexon M&A Deal Is Officially Over....for Now

Thematic (Sector/Industry)

<div class="content-highlight">June was an action packed month with KOSPI recovering by more than 4%. <a href="http://english.chosun.com/site/data/html_dir/2019/06/28/2019062801281.html" target="_blank" rel="noopener">Trump</a> will be meeting numerous top Korean chaebol leaders including Samsung's Lee Jae-Yong at the end of June. Despite the slight rise in the domestic stock market, the Korean economy continues to struggle deeply with major export declines and sluggish domestic consumption. </div>The top 10 events impacting the Korean stock market, economy, &amp; politics in June were as follows:<ul>
<li>CHINA/US TRADE WAR</li>
<li>NEXON M&amp;A DEAL IS OVER </li>
<li>BULL/BEAR CASE FOR SAMSUNG ELECTRONICS <a href="https://www.smartkarma.com/insights/samsung-electronics-a-bearish-investment-thesis" target="_blank" data-smartkarma-citation="insights:28936" rel="noopener"></a>
</li>
<li>INTERESTING SMALL CAP KOREAN IPOS</li>
<li>CORPORATE ACTIVISM ON SM ENTERTAINMENT</li>
<li>TOP KOREAN COMPANIES TARGETED BY LOCAL FUNDS FOR CORPORATE ACTIVISM</li>
<li>WOONGJIN PLANS TO RE-SELL COWAY</li>
<li>DELTA TAKES A BIG STAKE IN KOREAN AIR</li>
<li>5G SUBSCRIBERS EXCEED 1 MILLION IN KOREA</li>
<li>SURGING BITCOIN/CRYPTOS PRICES</li>
</ul>The top three reports we wrote in June related to the Korean market were as follows (in terms of views &amp; appreciates):<ul>
<li>
<a href="https://www.smartkarma.com/insights/samsung-electronics-a-bearish-investment-thesis" target="_blank" data-smartkarma-citation="insights:28936" rel="noopener">Samsung Electronics. A Bearish Investment Thesis.</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/a-list-of-10-korean-companies-targeted-by-local-asset-mgmt-firms-for-improving-shareholder-value" target="_blank" data-smartkarma-citation="insights:30317" rel="noopener">A List of 10 Korean Companies Targeted by Local Asset Mgmt Firms for Improving Shareholder Value</a> 
</li>
<li>
<a href="https://www.smartkarma.com/insights/nexon-m-a-deal-is-officially-over-for-now" target="_blank" data-smartkarma-citation="insights:30687" rel="noopener">Nexon M&amp;A Deal Is Officially Over....for Now</a> </li>
</ul>Our model portfolio was up net 2.2% in June (cash is 40% of model portfolio), underperforming KOSPI which was up 4.4% in June. Our model portfolio is equal-weighted at the beginning of each month. In July, we are adding two new stocks in our model portfolio including Settlebank and Segyung Hitech. Both of these stocks are new IPOs to list in July.

June was an action packed month with KOSPI recovering by more than 4%. Trump will be meeting numerous top Korean chaebol leaders including Samsung's Lee Jae-Yong at the end of June. Despite the slight rise in the domestic stock market, the Korean economy continues to struggle deeply with major export declines and sluggish domestic consumption. The top 10 events impacting the Korean stock market, economy, &amp; politics in June were as follows:
CHINA/US TRADE WAR
NEXON M&amp;A DEAL IS OVER 
BULL/BEAR CASE FOR SAMSUNG ELECTRONICS 

INTERESTING SMALL CAP KOREAN IPOS
CORPORATE ACTIVISM ON SM ENTERTAINMENT
TOP KOREAN COMPANIES TARGETED BY LOCAL FUNDS FOR CORPORATE ACTIVISM
WOONGJIN PLANS TO RE-SELL COWAY
DELTA TAKES A BIG STAKE IN KOREAN AIR
5G SUBSCRIBERS EXCEED 1 MILLION IN KOREA
SURGING BITCOIN/CRYPTOS PRICES
The top three reports we wrote in June related to the Korean market were as follows (in terms of views &amp; appreciates):

Samsung Electronics. A Bearish Investment Thesis. 

A List of 10 Korean Companies Targeted by Local Asset Mgmt Firms for Improving Shareholder Value 


Nexon M&amp;A Deal Is Officially Over....for Now 
Our model portfolio was up net 2.2% in June (cash is 40% of model portfolio), underperforming KOSPI which was up 4.4% in June. Our model portfolio is equal-weighted at the beginning of each month. In July, we are adding two new stocks in our model portfolio including Settlebank and Segyung Hitech. Both of these stocks are new IPOs to list in July. 

Korea Stock Market Monthly Recap #37 (June 2019)