Pan-Asia Index Flows & Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Equity Analyst with experience in fundamental and event-driven research in Frontier and Emerging markets. 

On Smartkarma, I mainly publish insights on index flow events in the Asia-Pacific region. This includes predicting regular and intra-review index changes and estimating upcoming passive flows. I also cover special situations such as mergers & acquisitions, equity offerings, buybacks, and other corporate restructuring events.

Pan-Asia Index Flows & Special Situations

Historical TOPIX Inclusions:  What Flavor Performs Best?

Nippon Rietec's (1938) Gangbusters TOPIX Inclusion

Quiddity Advisors

Pan-Asia Catalysts/Events

Event-Driven

On 17th June, Japanese network and system integrator <a href="https://www.smartkarma.com/entities/tsuzuki-denki-co-ltd" target="_blank" data-smartkarma-citation="entities:8270:1" rel="noopener">Tsuzuki Denki (8157 JP)</a> confirmed (<a href="https://ssl4.eir-parts.net/doc/8157/tdnet/1849938/00.pdf" target="_blank" rel="noopener">J-only</a>) they had received approval to move from the Second Section to the First Section of the Tokyo Stock Exchange as of 24th June 2020.The pre-announcement closing price was ¥1,242 on 17th June - the day on which I published a BUY insight <a href="https://www.smartkarma.com/insights/topix-inclusion-8157-jp-tsuzuki-denki" target="_blank" data-smartkarma-citation="insights:40444" rel="noopener">TOPIX Inclusion (8157 JP): Tsuzuki Denki</a>. The announcement was something of a surprise, as it often is when a stock gets promoted to TSE1 after sitting on TSE2 for many years (10+ years for Tsuzuki Denki), especially without showing any "pre-event" signals like equity offerings prior to the announcement.On the first day of trading, the stock popped 22.5% closing at ¥1,522. Since then, the stock has enjoyed a strong rally, closing at a high of ¥2,146 on 17th July. After a slight correction in the last few days, the stock closed at ¥1,849 today.  <figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/148/196/original/Screenshot%202020-07-27%20at%206.50.14%20PM.png?1595847040" class="editor-image img-responsive" data-smartkarma-image-id="148196"></figure><div class="content-caption">Source: Tradingview.com, Quiddity</div>If you had bought the stock on the first day post-announcement, you would currently be at least +21.5% up in just over a month.The Inclusion Event will be at the close of trading on the 30th July 2020 and this will mark the end of dramatic inflow dynamics. With 3 more days to the Inclusion Event, we take a look at the possible trade actions. As always, there is more below the fold.

On 17th June, Japanese network and system integrator Tsuzuki Denki (8157 JP) confirmed (J-only) they had received approval to move from the Second Section to the First Section of the Tokyo Stock Exchange as of 24th June 2020.The pre-announcement closing price was ¥1,242 on 17th June - the day on which I published a BUY insight TOPIX Inclusion (8157 JP): Tsuzuki Denki.  The announcement was something of a surprise, as it often is when a stock gets promoted to TSE1 after sitting on TSE2 for many years (10+ years for Tsuzuki Denki), especially without showing any "pre-event" signals like equity offerings prior to the announcement.On the first day of trading, the stock popped 22.5% closing at ¥1,522. Since then, the stock has enjoyed a strong rally, closing at a high of ¥2,146 on 17th July. After a slight correction in the last few days, the stock closed at ¥1,849 today.  Source: Tradingview.com, QuiddityIf you had bought the stock on the first day post-announcement, you would currently be at least +21.5% up in just over a month.The Inclusion Event will be at the close of trading on the 30th July 2020 and this will mark the end of dramatic inflow dynamics. With 3 more days to the Inclusion Event, we take a look at the possible trade actions. As always, there is more below the fold. 

Tsuzuki Denki (8157 JP): 3 More Days to The Inclusion Event - Prepare to Sell/Short