Korea / Special Situations, Clepsydra Capital

Sanghyun Park

Korea / Special Situations

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

Event-Driven

<ul>
<li>There are three ways families can settle inheritance tax: 1. payment in Kind, 2. direct sale of the NXC stake, and 3. NXC sells its stake in Nexon Japan.</li>
<li>They have different ramifications from an investment point of view, and the third option is probably the one that the market desires most.</li>
<li>If the family goes for the third option, they will likely sell all of NXC's Nexon Japan stake (47.89%), which will lead to a TOB to Nexon Japan minority shareholders.</li>
</ul>


There are three ways families can settle inheritance tax: 1. payment in Kind, 2. direct sale of the NXC stake, and 3. NXC sells its stake in Nexon Japan.
They have different ramifications from an investment point of view, and the third option is probably the one that the market desires most.
If the family goes for the third option, they will likely sell all of NXC's Nexon Japan stake (47.89%), which will lead to a TOB to Nexon Japan minority shareholders.


Three Ways of Settling Nexon Inheritance Tax Payment: Each Way's Ramifications

<ul>
<li>We should pay the most attention to what choices and decisions the bereaved family will make concerning the stakes and management rights of the deceased in NXC.</li>
<li>This opens the possibility that the KJJ's stake sale event in 2019 will happen again in the foreseeable future.</li>
<li>Under these circumstances, there is a possibility that short-term momentum trading aimed at tender offers to minority shareholders following the sale of Nexon's major shareholder stake will surge.</li>
</ul>


We should pay the most attention to what choices and decisions the bereaved family will make concerning the stakes and management rights of the deceased in NXC.
This opens the possibility that the KJJ's stake sale event in 2019 will happen again in the foreseeable future.
Under these circumstances, there is a possibility that short-term momentum trading aimed at tender offers to minority shareholders following the sale of Nexon's major shareholder stake will surge.


The Passing of Nexon Founder KJJ & Controlling Stake Sale Event 2.0

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>The founder and former chairman and CEO of <a href="https://www.smartkarma.com/entities/nexon-co-ltd" target="_blank" data-smartkarma-citation="entities:16032:1" rel="noopener">Nexon (3659 JP)</a> passed away according to both Nexon and his holding company NXC. Both announced it late afternoon 1 March.</li>
<li>NXC - the near-parent  (47+% stake) of Nexon tried to sell Nexon/NXC in H1 2019 to no avail. Since then, profits have rebounded somewhat, and investments have multiplied. </li>
<li>The estate may wish to sell Nexon shares, or its entire stake, at some point near-term.</li>
</ul>


The founder and former chairman and CEO of Nexon (3659 JP) passed away according to both Nexon and his holding company NXC. Both announced it late afternoon 1 March.
NXC - the near-parent  (47+% stake) of Nexon tried to sell Nexon/NXC in H1 2019 to no avail. Since then, profits have rebounded somewhat, and investments have multiplied. 
The estate may wish to sell Nexon shares, or its entire stake, at some point near-term.


Nexon - Founder Kim Jung-Ju Passes, Raises Question if Nexon Deal Is Back In Play

<p>Nexon GT hit nearly 10x 30D DTV last Friday. It eventually wrapped up the day with a 9% gain.</p><p>It was attributable to the market rumor that Nexon KJJ may give it another try.</p><p>Yes, selling the company.</p><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/172/204/original/chart.png?1605584095" class="editor-image img-responsive" data-smartkarma-image-id="172204"></figure></section><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/172/205/original/chart%20%281%29.png?1605584106" class="editor-image img-responsive" data-smartkarma-image-id="172205"></figure></section><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/172/206/original/chart%20%282%29.png?1605584114" class="editor-image img-responsive" data-smartkarma-image-id="172206"></figure></section><table class="table table-striped">
<colgroup>
<col width="70">
<col width="70">
</colgroup>
<tbody>
<tr>
<td style="width: 351.818px;" data-sheets-value='{"1":2,"2":"Item"}'>Item</td>
<td style="text-align: right; width: 350.909px;" data-sheets-value='{"1":2,"2":"Value"}'>Value</td>
</tr>
<tr>
<td style="width: 351.818px;" data-sheets-value='{"1":2,"2":"Name"}' data-sheets-numberformat='{"1":5,"2":"m\"/\"d\"/\"yy"}'>Name</td>
<td style="text-align: right; width: 350.909px;" data-sheets-value='{"1":2,"2":"Nexon GT Co Ltd"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}' data-sheets-formula='=googlefinance(R[1]C[0], "name")'>Nexon GT Co Ltd</td>
</tr>
<tr>
<td style="width: 351.818px;" data-sheets-value='{"1":2,"2":"Ticker"}' data-sheets-numberformat='{"1":5,"2":"m\"/\"d\"/\"yy"}'>Ticker</td>
<td style="text-align: right; width: 350.909px;" data-sheets-value='{"1":2,"2":"041140"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}' data-sheets-formula="=R[0]C[-4]">041140</td>
</tr>
<tr>
<td style="width: 351.818px;">MC (₩B)</td>
<td style="text-align: right; width: 350.909px;">468.7</td>
</tr>
<tr>
<td style="width: 351.818px;">PE (x)</td>
<td style="text-align: right; width: 350.909px;">17.58</td>
</tr>
<tr>
<td style="width: 351.818px;">RSI (14)</td>
<td style="text-align: right; width: 350.909px;">14.02</td>
</tr>
<tr>
<td style="width: 351.818px;" data-sheets-value='{"1":2,"2":"52WH"}'>52WH</td>
<td style="text-align: right; width: 350.909px;" data-sheets-value='{"1":3,"3":-0.37995337995337997}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R5C[-4]-R[0]C[1])/R[0]C[1]">-38.00%</td>
</tr>
<tr>
<td style="width: 351.818px;" data-sheets-value='{"1":2,"2":" - Date"}'>- Date</td>
<td style="text-align: right; width: 350.909px;" data-sheets-value='{"1":3,"3":44053.64583333333}' data-sheets-numberformat='{"1":5,"2":"m\"/\"d\"/\"yy"}' data-sheets-formula='=index(googlefinance(R[-2]C[0], "price", today()-365, today()), (match(max(index(googlefinance(R[-2]C[0], "price", today()-365, today()), 0, 2)), index(googlefinance(R[-2]C[0], "price", today()-365, today()), 0, 2), 0)), 1)'>8/10/20</td>
</tr>
<tr>
<td style="width: 351.818px;" data-sheets-value='{"1":2,"2":"52WL"}'>52WL</td>
<td style="text-align: right; width: 350.909px;" data-sheets-value='{"1":3,"3":3.169278996865204}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R5C[-4]-R[0]C[1])/R[0]C[1]">316.93%</td>
</tr>
<tr>
<td style="width: 351.818px;" data-sheets-value='{"1":2,"2":" - Date"}'>- Date</td>
<td style="text-align: right; width: 350.909px;" data-sheets-value='{"1":3,"3":43909.64583333333}' data-sheets-numberformat='{"1":5,"2":"m\"/\"d\"/\"yy"}' data-sheets-formula='=index(googlefinance(R[-4]C[0], "price", today()-365, today()), (match(min(index(googlefinance(R[-4]C[0], "price", today()-365, today()), 0, 2)), index(googlefinance(R[-4]C[0], "price", today()-365, today()), 0, 2), 0)), 1)'>3/19/20</td>
</tr>
<tr>
<td style="width: 351.818px;" data-sheets-value='{"1":2,"2":"20D SMA"}'>20D SMA</td>
<td style="text-align: right; width: 350.909px;" data-sheets-value='{"1":3,"3":0.03645978291121627}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R5C2-R304C[11])/R304C[11]">3.68%</td>
</tr>
<tr>
<td style="width: 351.818px;" data-sheets-value='{"1":2,"2":"20D EMA"}'>20D EMA</td>
<td style="text-align: right; width: 350.909px;" data-sheets-value='{"1":3,"3":0.8282098276395986}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R5C2-R304C[12])/R304C[12]">-0.09%</td>
</tr>
<tr>
<td style="width: 351.818px;" data-sheets-value='{"1":2,"2":"1M Δ"}'>1M Δ</td>
<td style="text-align: right; width: 350.909px;" data-sheets-value='{"1":3,"3":-0.007462686567164179}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula='=(googlefinance(R[-7]C2, "price")-index(googlefinance(R[-7]C2, "price", today()-30), 2,2))/index(googlefinance(R[-7]C2, "price", today()-30), 2,2)'>-0.75%</td>
</tr>
<tr>
<td style="width: 351.818px;" data-sheets-value='{"1":2,"2":"1M SD"}'>1M SD</td>
<td style="text-align: right; width: 350.909px;" data-sheets-value='{"1":3,"3":0.04843325495420494}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula='=stdev.s(index((googlefinance(R3C[-4], "price", today()-30, today())), 0, 2))/average(index((googlefinance(R3C[-4], "price", today()-30, today())), 0, 2))'>4.84%</td>
</tr>
<tr>
<td style="width: 351.818px;" data-sheets-value='{"1":2,"2":"3M Δ"}'>3M Δ</td>
<td style="text-align: right; width: 350.909px;" data-sheets-value='{"1":3,"3":-0.2887700534759358}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula='=(googlefinance(R[-9]C2, "price")-index(googlefinance(R[-9]C2, "price", today()-90), 2,2))/index(googlefinance(R[-9]C2, "price", today()-90), 2,2)'>-28.88%</td>
</tr>
<tr>
<td style="width: 351.818px;" data-sheets-value='{"1":2,"2":"3M SD"}'>3M SD</td>
<td style="text-align: right; width: 350.909px;" data-sheets-value='{"1":3,"3":0.15250497055360993}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula='=stdev.s(index((googlefinance(R3C[-4], "price", today()-90, today())), 0, 2))/average(index((googlefinance(R3C[-4], "price", today()-90, today())), 0, 2))'>15.25%</td>
</tr>
<tr>
<td style="width: 351.818px;" data-sheets-value='{"1":2,"2":"6M Δ"}'>6M Δ</td>
<td style="text-align: right; width: 350.909px;" data-sheets-value='{"1":3,"3":0.6440049443757726}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula='=(googlefinance(R[-11]C2, "price")-index(googlefinance(R[-11]C2, "price", today()-180), 2,2))/index(googlefinance(R[-11]C2, "price", today()-180), 2,2)'>64.40%</td>
</tr>
<tr>
<td style="width: 351.818px;" data-sheets-value='{"1":2,"2":"6M SD"}'>6M SD</td>
<td style="text-align: right; width: 350.909px;" data-sheets-value='{"1":3,"3":0.24890197224978697}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula='=stdev.s(index((googlefinance(R3C[-4], "price", today()-180, today())), 0, 2))/average(index((googlefinance(R3C[-4], "price", today()-180, today())), 0, 2))'>24.89%</td>
</tr>
<tr><td colspan="2" style="width: 723.636px;" data-sheets-value='{"1":2,"2":"Source: Google Finance"}'>Source: Google Finance</td></tr>
</tbody>
</table>

Nexon GT hit nearly 10x 30D DTV last Friday. It eventually wrapped up the day with a 9% gain.It was attributable to the market rumor that Nexon KJJ may give it another try.Yes, selling the company.






Item
Value


Name
Nexon GT Co Ltd


Ticker
041140


MC (₩B)
468.7


PE (x)
17.58


RSI (14)
14.02


52WH
-38.00%


- Date
8/10/20


52WL
316.93%


- Date
3/19/20


20D SMA
3.68%


20D EMA
-0.09%


1M Δ
-0.75%


1M SD
4.84%


3M Δ
-28.88%


3M SD
15.25%


6M Δ
64.40%


6M SD
24.89%

Source: Google Finance



Nexon: Speculation Checking & Valuation Level for Building a Position

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Index Rebalance

<p>The KRX announced the list of inclusions and exclusions to the KOSDAQ150 Index today. The rebalance is effective as of 12 June and all passive buying/selling will be done at the closing auction on 11 June.</p><p>There are 14 inclusions and 14 exclusions in the June 2020 review with an expected one-way turnover of 5.15%.</p><p>The inclusions and exclusions are shown in the table below</p><table class="table table-striped">
<colgroup>
<col>
<col>
<col>
<col>
</colgroup>
<tbody>
<tr>
<td style="text-align: center; width: 230pt;" colspan="2">INCLUSIONS</td>
<td style="text-align: center; width: 219pt;" colspan="2">EXCLUSIONS</td>
</tr>
<tr>
<td>018290.KQ</td>
<td>VT GMP Co Ltd</td>
<td>007820.KQ</td>
<td>SM Core Inc</td>
</tr>
<tr>
<td>032190.KQ</td>
<td>Daou Data Corp</td>
<td>013030.KQ</td>
<td>HY-Lok Corp</td>
</tr>
<tr>
<td>038540.KQ</td>
<td>Sangsangin Co Ltd</td>
<td>016250.KQ</td>
<td>eTEC E&amp;C Ltd</td>
</tr>
<tr>
<td>041190.KQ</td>
<td>Woori Technology Investment Co Ltd</td>
<td>019210.KQ</td>
<td>YG-1 Co Ltd</td>
</tr>
<tr>
<td>052260.KQ</td>
<td>SK Bio Land Co Ltd</td>
<td>036630.KQ</td>
<td>Sejong Telecom Inc</td>
</tr>
<tr>
<td>060720.KQ</td>
<td>KH Vatec Co Ltd</td>
<td>041140.KQ</td>
<td>Nexon GT Co Ltd</td>
</tr>
<tr>
<td>078020.KQ</td>
<td>eBEST Investment &amp; Securities Co Ltd</td>
<td>044490.KQ</td>
<td>Taewoong Co Ltd</td>
</tr>
<tr>
<td>078070.KQ</td>
<td>Ubiquoss Holdings Inc</td>
<td>045100.KQ</td>
<td>Hanyang ENG Co Ltd</td>
</tr>
<tr>
<td>084370.KQ</td>
<td>Eugene Technology Co Ltd</td>
<td>067390.KQ</td>
<td>AeroSpace Technology of Korea Inc</td>
</tr>
<tr>
<td>084850.KQ</td>
<td>ITM Semiconductor Co Ltd</td>
<td>095190.KQ</td>
<td>EMKorea Co Ltd</td>
</tr>
<tr>
<td>085660.KQ</td>
<td>Chabiotech Co Ltd</td>
<td>215360.KQ</td>
<td>Woory Industrial Co Ltd</td>
</tr>
<tr>
<td>214370.KQ</td>
<td>Caregen Co Ltd</td>
<td>215600.KQ</td>
<td>SillaJen Inc</td>
</tr>
<tr>
<td>268600.KQ</td>
<td>Cellivery Therapeutics Inc</td>
<td>217730.KQ</td>
<td>Kang Stem Biotech Co Ltd</td>
</tr>
<tr>
<td>282880.KQ</td>
<td>CowinTech Co Ltd</td>
<td>222040.KQ</td>
<td>Cosmax NBT Inc</td>
</tr>
</tbody>
</table><p>There is significant volume to buy and sell on quite a few inclusions and exclusions and stocks will move since there are only 11 trading days to implementation.</p>

The KRX announced the list of inclusions and exclusions to the KOSDAQ150 Index today. The rebalance is effective as of 12 June and all passive buying/selling will be done at the closing auction on 11 June.There are 14 inclusions and 14 exclusions in the June 2020 review with an expected one-way turnover of 5.15%.The inclusions and exclusions are shown in the table below








INCLUSIONS
EXCLUSIONS


018290.KQ
VT GMP Co Ltd
007820.KQ
SM Core Inc


032190.KQ
Daou Data Corp
013030.KQ
HY-Lok Corp


038540.KQ
Sangsangin Co Ltd
016250.KQ
eTEC E&amp;C Ltd


041190.KQ
Woori Technology Investment Co Ltd
019210.KQ
YG-1 Co Ltd


052260.KQ
SK Bio Land Co Ltd
036630.KQ
Sejong Telecom Inc


060720.KQ
KH Vatec Co Ltd
041140.KQ
Nexon GT Co Ltd


078020.KQ
eBEST Investment &amp; Securities Co Ltd
044490.KQ
Taewoong Co Ltd


078070.KQ
Ubiquoss Holdings Inc
045100.KQ
Hanyang ENG Co Ltd


084370.KQ
Eugene Technology Co Ltd
067390.KQ
AeroSpace Technology of Korea Inc


084850.KQ
ITM Semiconductor Co Ltd
095190.KQ
EMKorea Co Ltd


085660.KQ
Chabiotech Co Ltd
215360.KQ
Woory Industrial Co Ltd


214370.KQ
Caregen Co Ltd
215600.KQ
SillaJen Inc


268600.KQ
Cellivery Therapeutics Inc
217730.KQ
Kang Stem Biotech Co Ltd


282880.KQ
CowinTech Co Ltd
222040.KQ
Cosmax NBT Inc


There is significant volume to buy and sell on quite a few inclusions and exclusions and stocks will move since there are only 11 trading days to implementation.

KOSDAQ150 Index Review - Let's Not Follow The Index Methodology

South Korea

Nexon GT Co., Ltd. develops games. The Company develops online games, mobile games, and other related games. Nexon GT markets its products throughout South Korea.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Nexon GT Co Ltd (041140 KS)

Three Ways of Settling Nexon Inheritance Tax Payment: Each Way's Ramifications

This post examines three ways of the Nexon family settling the inheritance tax payment. They have different ramifications from a trading perspective.

Sanghyun Park

The Passing of Nexon Founder KJJ & Controlling Stake Sale Event 2.0

We should pay the most attention to what choices and decisions the bereaved family will make concerning the stakes and management rights of the...

Sanghyun Park

Nexon - Founder Kim Jung-Ju Passes, Raises Question if Nexon Deal Is Back In Play

Nexon's founder Kim Jung-ju has passed away. This raises the question of the disposition of the 47+% stake belonging to his holding company NXC. If...

Travis Lundy

Nexon: Speculation Checking & Valuation Level for Building a Position

This is fact-checking on last Friday's Nexon sale rumor. I found it unsubstantiated; nevertheless, the circumstance deserves attention. Valuation...

Sanghyun Park

KOSDAQ150 Index Review - Let's Not Follow The Index Methodology

The KRX announced the list of inclusions and exclusions to the KOSDAQ150 Index today. The rebalance is effective as of 12 June and all passive...

Brian Freitas

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)