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

Thoughts on Amazon –What Does Its Valuation Tells Us?

Netflix & Amazon Expand in Korea – Not a Coincidence

Okja: The Fight Between Netflix Vs. CJ CGV

Quiddity Advisors

Event-Driven

<p>On Feb 14th, <a href="https://www.smartkarma.com/entities/nippon-rietec-co-ltd" target="_blank" data-smartkarma-citation="entities:20794:1" rel="noopener">Nippon Rietec (1938 JP)</a> <a href="https://www2.tse.or.jp/disc/19380/140120200131455296.pdf" target="_blank" data-saferedirecturl="https://www.google.com/url?q=http://www2.tse.or.jp/disc/43480/140120181121440082.pdf&amp;source=gmail&amp;ust=1543503062935000&amp;usg=AFQjCNFlZDxFSzqOJFC0VCEttkeTfjh1XA" rel="noopener">announced</a> (J-only) that the TSE had approved its application to move from the Second Section of the TSE to the First Section of the TSE as of 5th Mar 2020. Consequently, the company also declared a commemorative dividend of ¥3/share resulting in a change in full-year dividend forecast from ¥24/share to ¥27/share.</p><p>The company <em>also</em><a href="https://www2.tse.or.jp/disc/19380/140120200131455296.pdf" target="_blank" rel="noopener">simultaneously announced</a> a sale of 900,000 shares by four of its existing shareholders:  </p><table class="table table-striped"><tbody>
<tr>
<td style="width: 352.8px;">Shareholders</td>
<td style="width: 351.2px;">Quantity </td>
</tr>
<tr>
<td style="width: 352.8px;">Meiji Yasuda Life Insurance Company</td>
<td style="width: 351.2px;">300,000 shares</td>
</tr>
<tr>
<td style="width: 352.8px;">Mizuho Bank, Ltd.</td>
<td style="width: 351.2px;">200,000 shares</td>
</tr>
<tr>
<td style="width: 352.8px;">Mitsubishi UFJ Bank, Ltd.</td>
<td style="width: 351.2px;">200,000 shares</td>
</tr>
<tr>
<td style="width: 352.8px;">Sumitomo Mitsui Trust Bank, Limited</td>
<td style="width: 351.2px;">200,000 shares. </td>
</tr>
</tbody></table><p>There is also an over-allotment quantity of 135,000 shares. Together with the over-allotment, the total quantity of shares on offer will be 1,035,000 shares - <em>around 4% of Nippon Rietec's current shares outstanding</em>. </p><p>The price of this offering will be decided referenced to the closing price of the stock from 25th to 27th Feb 2019. Applications for this offering will be open for two business days following the date on which the selling price is determined. Shares will be delivered on 5th Mar 2020.</p><p>We estimate the size of the TOPIX inclusion to be 1.8mn-2.0mn shares. The size of this inclusion has significant implications to the stock price as we discuss below. </p>

On Feb 14th, Nippon Rietec (1938 JP) announced (J-only) that the TSE had approved its application to move from the Second Section of the TSE to the First Section of the TSE as of 5th Mar 2020. Consequently, the company also declared a commemorative dividend of ¥3/share resulting in a change in full-year dividend forecast from ¥24/share to ¥27/share.The company alsosimultaneously announced a sale of 900,000 shares by four of its existing shareholders:  

Shareholders
Quantity 


Meiji Yasuda Life Insurance Company
300,000 shares


Mizuho Bank, Ltd.
200,000 shares


Mitsubishi UFJ Bank, Ltd.
200,000 shares


Sumitomo Mitsui Trust Bank, Limited
200,000 shares. 

There is also an over-allotment quantity of 135,000 shares. Together with the over-allotment, the total quantity of shares on offer will be 1,035,000 shares - around 4% of Nippon Rietec's current shares outstanding. The price of this offering will be decided referenced to the closing price of the stock from 25th to 27th Feb 2019. Applications for this offering will be open for two business days following the date on which the selling price is determined. Shares will be delivered on 5th Mar 2020.We estimate the size of the TOPIX inclusion to be 1.8mn-2.0mn shares. The size of this inclusion has significant implications to the stock price as we discuss below. 

Nippon Rietec (1938) - SUPER Interesting Events Unfolding