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

Historical TOPIX Inclusions:  How Do They Do Around Inclusion Date?

Small Potatoes Nikkei 225 Changes on Christmas Day

Benefit One (2412 JP) : Big TSE1 Move and TOPIX Inclusion

Quiddity Advisors

Event-Driven

On November 13th last year, <a href="https://www.smartkarma.com/entities/26096" target="_blank" data-smartkarma-citation="entities:26096:1">Linkbal Inc (6046 JP)</a> announced it was looking to move from MOTHERS to the TSE First Section. The stock rallied. At the same time the company said that it was preparing to file an application for the move. On March 5th, the company announced a forthcoming tachiaigai bunbai offering designed to increase the float. That tachiaigai bunbai offering (designed for retail investors only) takes place this morning after an announcement the company would oversee the offer of 970,000 shares (about 5% of the company but about 180% of the float currently held by public retail investors) at a price of ¥905/share (1,000 shares max per buyer), which is a 3% discount to yesterday's close of ¥933 yen. This will get it most of the way towards meeting the requirements, but likely not all the way. An inclusion is still months off. And there would likely be another sale to increase shareholder count by 800-1000 before then, whether in the form of a Public Offering/Uridashi or in the form of another tachiaigai bunbai.Given where we are on timing, as shown in <a href="https://www.smartkarma.com/insights/historical-topix-inclusions-how-do-they-do-around-inclusion-date" target="_blank" data-smartkarma-citation="insights:26751">Historical TOPIX Inclusions:  How Do They Do Around Inclusion Date?</a> this would seem an interesting bet. Given the company's prodigious growth in sales and profits, even though it is small, more people will look at it.

On November 13th last year, Linkbal Inc (6046 JP) announced it was looking to move from MOTHERS to the TSE First Section. The stock rallied. At the same time the company said that it was preparing to file an application for the move. On March 5th, the company announced a forthcoming tachiaigai bunbai offering designed to increase the float. That tachiaigai bunbai offering (designed for retail investors only) takes place this morning after an announcement the company would oversee the offer of 970,000 shares (about 5% of the company but about 180% of the float currently held by public retail investors) at a price of ¥905/share (1,000 shares max per buyer), which is a 3% discount to yesterday's close of ¥933 yen. This will get it most of the way towards meeting the requirements, but likely not all the way. An inclusion is still months off. And there would likely be another sale to increase shareholder count by 800-1000 before then, whether in the form of a Public Offering/Uridashi or in the form of another tachiaigai bunbai.Given where we are on timing, as shown in Historical TOPIX Inclusions:  How Do They Do Around Inclusion Date? this would seem an interesting bet. Given the company's prodigious growth in sales and profits, even though it is small, more people will look at it.

Linkbal (6046 JP) SmallCap Growth Stock: Offering This Morning, TOPIX Inclusion Late Summer 2019?