Korea / Special Situations, Clepsydra Capital

Sanghyun Park

Korea / Special Situations

Event-Driven

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<li>
<a href="https://www.smartkarma.com/entities/6659" target="_blank" data-smartkarma-citation="entities:6659:1">Poongsan Holdings (005810 KS)</a> is another clear-cut target of stub trade in Korea. <a href="https://www.smartkarma.com/entities/16504" target="_blank" data-smartkarma-citation="entities:16504:1">Poongsan Corp (103140 KS)</a> is responsible for nearly 80% of the sub holdings. Holdco is currently at a 53% discount to NAV. Holdco discount has narrowed. But it is still substantially higher than the local average of 40%.</li>
<li>Sub is having a run today. It went as high as 6% today. Currently, it is up 4%. Holdco is up 2%. They are now close to -1 σ on a 20D MA. Poongsan business is highly exposed to copper price and US ammunition demand. It still appears that Poongsan is suffering from a weaker copper price and falling demand of ammunition in US.</li>
<li>I'd make a trade on a short-term horizon. I'd capitalize on a divergence on a 20D MA. I'd wait a bit until later today when there is a little greater price divergence on the duo. I'd make a stub trade when the price ratio on a 20D MA once again enters &lt; -1 σ territory.</li>
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Poongsan Holdings (005810 KS) is another clear-cut target of stub trade in Korea. Poongsan Corp (103140 KS) is responsible for nearly 80% of the sub holdings. Holdco is currently at a 53% discount to NAV. Holdco discount has narrowed. But it is still substantially higher than the local average of 40%.
Sub is having a run today. It went as high as 6% today. Currently, it is up 4%. Holdco is up 2%. They are now close to -1 σ on a 20D MA. Poongsan business is highly exposed to copper price and US ammunition demand. It still appears that Poongsan is suffering from a weaker copper price and falling demand of ammunition in US.
I'd make a trade on a short-term horizon. I'd capitalize on a divergence on a 20D MA. I'd wait a bit until later today when there is a little greater price divergence on the duo. I'd make a stub trade when the price ratio on a 20D MA once again enters &lt; -1 σ territory.


Poongsan Holdings Stub Trade: Current Status & Trade Approach

South Korea

Poongsan Holdings Corporation is an investment holding company.  The company, through its subsidiaries, manufactures non-ferrous metal and defense-related products.

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Poongsan Holdings Stub Trade: Current Status & Trade Approach

Poongsan Holdings (005810 KS) is another clear-cut target of stub trade in Korea. Poongsan Corp (103140 KS) is responsible for nearly 80% of the...

Sanghyun Park