Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/gmo-internet-inc-919fd60b-ad2a-4c5f-b333-167a849b67b0" target="_blank" data-smartkarma-citation="entities:9029:1" rel="noopener">GMO Internet (4784 JP)</a> was created by the reverse takeover of a listed cad/media company by its parent company's "internet infrastructure" business. GMO Internet Group ended up with ~98%.</li>
<li>In the process, the stock rose 500%. Now, as part of its promise to the TSE allowing TSE Prime membership for the extraordinarily low-float target, the parent is offering shares.</li>
<li>The squeeze has it at 180x Dec25e EPS, 111x EBIT, 70x book. The offering likely gets pulled and the stock isn't shortable... so what next? Pain, and an ECLWO.</li>
</ul>



GMO Internet (4784 JP) was created by the reverse takeover of a listed cad/media company by its parent company's "internet infrastructure" business. GMO Internet Group ended up with ~98%.
In the process, the stock rose 500%. Now, as part of its promise to the TSE allowing TSE Prime membership for the extraordinarily low-float target, the parent is offering shares.
The squeeze has it at 180x Dec25e EPS, 111x EBIT, 70x book. The offering likely gets pulled and the stock isn't shortable... so what next? Pain, and an ECLWO.


GMO Internet (4784) - Squeeze-Able So Squeezing, Offering Likely Gets Pulled - AVOID LIKE THE PLAGUE

<ul>
<li>
<a href="https://www.smartkarma.com/entities/gmo-ad-partners-inc" target="_blank" data-smartkarma-citation="entities:9029:1" rel="noopener">Gmo Ad Partners (4784 JP)</a> has become GMO Internet as of 1 January 2025. On that day, it merged with the "internet infrastructure business" of <a href="https://www.smartkarma.com/entities/gmo-internet-inc" target="_blank" data-smartkarma-citation="entities:13631:1" rel="noopener">GMO Internet (9449 JP)</a>. </li>
<li>It was a kind of reverse takeover - a backdoor listing - and it on 24-Dec-2024, it was announced GMO Internet would move from TSE Standard to TSE Prime end-Jan2025.</li>
<li>The stock is +300% since then. Why? A squeeze. Share count increase? 15x. Float share increase? Zero. Resulting Real World Float? 1.24% of shares out and about to shrink.</li>
</ul>



Gmo Ad Partners (4784 JP) has become GMO Internet as of 1 January 2025. On that day, it merged with the "internet infrastructure business" of GMO Internet (9449 JP). 
It was a kind of reverse takeover - a backdoor listing - and it on 24-Dec-2024, it was announced GMO Internet would move from TSE Standard to TSE Prime end-Jan2025.
The stock is +300% since then. Why? A squeeze. Share count increase? 15x. Float share increase? Zero. Resulting Real World Float? 1.24% of shares out and about to shrink.


GMO Internet (4784) DropDown Holdco Gone Ballistic - Squeezed on Truly Tiny Float

David Blennerhassett

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/gmo-internet-group-inc" target="_blank" data-smartkarma-citation="entities:13631:1" rel="noopener">GMO Internet Group (9449 JP)</a> needs to sell shares in <a href="https://www.smartkarma.com/entities/gmo-internet-inc-919fd60b-ad2a-4c5f-b333-167a849b67b0" target="_blank" data-smartkarma-citation="entities:9029:1" rel="noopener">GMO Internet (4784 JP)</a> to achieve a "float" of 35% by 31 December 2026. Recent filings show they are selling. </li>
<li>Preceding my comments on the GMO group - and <a href="https://www.smartkarma.com/entities/haw-par-corp-ltd" target="_blank" data-smartkarma-citation="entities:9898:1" rel="noopener">Haw Par Corp (HPAR SP)</a>/ <a href="https://www.smartkarma.com/entities/united-overseas-bank-ltd" target="_blank" data-smartkarma-citation="entities:113:1" rel="noopener">UOB (UOB SP)</a> - are the current setup/unwind tables for Asia-Pacific Holdcos.</li>
<li>These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation &gt;20%.</li>
</ul>



GMO Internet Group (9449 JP) needs to sell shares in GMO Internet (4784 JP) to achieve a "float" of 35% by 31 December 2026. Recent filings show they are selling. 
Preceding my comments on the GMO group - and Haw Par Corp (HPAR SP)/ UOB (UOB SP) - are the current setup/unwind tables for Asia-Pacific Holdcos.
These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation &gt;20%.


StubWorld: Stay Short On GMO Internet (4784 JP); Haw Par Now Even More Stretched

<ul>
<li>I have harped on the fact that <a href="https://www.smartkarma.com/entities/gmo-internet-group-inc" target="_blank" data-smartkarma-citation="entities:13631:1" rel="noopener">GMO Internet Group (9449 JP)</a> has to sell <a href="https://www.smartkarma.com/entities/gmo-internet-inc-919fd60b-ad2a-4c5f-b333-167a849b67b0" target="_blank" data-smartkarma-citation="entities:9029:1" rel="noopener">GMO Internet (4784 JP)</a> shares with the goal to get 35% tradable shares by end-2025.</li>
<li>I have written about it <a href="https://www.smartkarma.com/insights/gmo-internet-4784-dropdown-holdco-gone-ballistic-squeezed-on-truly-tiny-float" target="_blank" rel="noopener">here</a>, <a href="https://www.smartkarma.com/insights/gmo-internet-4784-offering-this-is-a-ginormous-re-ipo-avoid-like-the-plague" target="_blank" rel="noopener">here</a>, <a href="https://www.smartkarma.com/insights/gmo-internet-4784-squeeze-able-so-squeezing-offering-likely-gets-pulled-avoid-like-the-plague" target="_blank" rel="noopener">here</a>, and <a href="https://www.smartkarma.com/insights/gmo-internet-4784-shares-appear-manipulated-squeezed-again-but-parentco-must-sell" target="_blank" rel="noopener">here</a>. The price needs to be lower so the parent can launch a HUGE block. The stock must be less squeeze-able.</li>
<li>It turns out the parent started selling in the market the day after the Offering was cancelled. The setup is delicious now.</li>
</ul>


I have harped on the fact that GMO Internet Group (9449 JP) has to sell GMO Internet (4784 JP) shares with the goal to get 35% tradable shares by end-2025.
I have written about it here, here, here, and here. The price needs to be lower so the parent can launch a HUGE block. The stock must be less squeeze-able.
It turns out the parent started selling in the market the day after the Offering was cancelled. The setup is delicious now.


GMO Internet (4784) - GMO Internet Parent Has Been SELLING In The Market

<ul>
<li>
<a href="https://www.smartkarma.com/entities/gmo-internet-inc-919fd60b-ad2a-4c5f-b333-167a849b67b0" target="_blank" data-smartkarma-citation="entities:9029:1" rel="noopener">GMO Internet (4784 JP)</a> stays listed if/when <a href="https://www.smartkarma.com/entities/gmo-internet-group-inc" target="_blank" data-smartkarma-citation="entities:13631:1" rel="noopener">GMO Internet Group (9449 JP)</a> sells (a lot of) shares. Yet 4784 remains stubbornly - manipulated (?) - at nosebleed valuations. </li>
<li>Preceding my comments on the GMO group - and <a href="https://www.smartkarma.com/entities/dah-sing-financial-holdings" target="_blank" data-smartkarma-citation="entities:589:1" rel="noopener">Dah Sing Financial (440 HK)</a> and <a href="https://www.smartkarma.com/entities/axiata-group-berhad" target="_blank" data-smartkarma-citation="entities:944:1" rel="noopener">Axiata Group (AXIATA MK)</a> - are the current setup/unwind tables for Asia-Pacific Holdcos</li>
<li>Hese relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation &gt;20%.</li>
</ul>



GMO Internet (4784 JP) stays listed if/when GMO Internet Group (9449 JP) sells (a lot of) shares. Yet 4784 remains stubbornly - manipulated (?) - at nosebleed valuations. 
Preceding my comments on the GMO group - and Dah Sing Financial (440 HK) and Axiata Group (AXIATA MK) - are the current setup/unwind tables for Asia-Pacific Holdcos
Hese relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation &gt;20%.


StubWorld: Absent Borrow, GMO Internet (4784) Is An Avoid

Japan

GMO Internet, Inc. offers marketing services. The Company offers internet advertising, mobile advertising, search engine marketing, and other services to medium sized advertising agencies. GMO Internet conducts businesses throughout Japan.

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GMO Internet (4784 JP)

GMO Internet (4784) - Squeeze-Able So Squeezing, Offering Likely Gets Pulled - AVOID LIKE THE PLAGUE

Re-boomeranging this. Since I wrote, the stock is down more than 40%. The shares have now broken ¥2,000/share. We still have an additional 50% to...

Travis Lundy

StubWorld: Stay Short On GMO Internet (4784 JP); Haw Par Now Even More Stretched

GMO Internet (9449 JP) needs to sell GMO Internet (4784), and it is doing so. If you can take down borrow on 4784, stay short. It could get bumpy....

David Blennerhassett

GMO Internet (4784) - GMO Internet Parent Has Been SELLING In The Market

GMO backdoor-listed their ISP/portal biz into GMO Ad Partners (now GMO Internet). Then got a TOPIX listing with 1.2% float. So SQUEEZE. In 9 weeks,...

Travis Lundy

StubWorld: Absent Borrow, GMO Internet (4784) Is An Avoid

The trade is simple - avoid GMO Internet (4784 JP). Or take down borrow, where possible, for the persistent few who are up to the challenge.

David Blennerhassett

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GMO Internet (4784) - Squeeze-Able So Squeezing, Offering Likely Gets Pulled - AVOID LIKE THE PLAGUE

Re-boomeranging this. Since I wrote, the stock is down more than 40%. The shares have now broken ¥2,000/share. We still have an additional 50% to...

Travis Lundy

GMO Internet (4784) DropDown Holdco Gone Ballistic - Squeezed on Truly Tiny Float

GMO Internet is the old GMO Ad Partners with a reverse takeover executed as of Jan 1. Float now is low. The company sees it as 1.44%. It's lower...

Travis Lundy

StubWorld: Stay Short On GMO Internet (4784 JP); Haw Par Now Even More Stretched

GMO Internet (9449 JP) needs to sell GMO Internet (4784), and it is doing so. If you can take down borrow on 4784, stay short. It could get bumpy....

David Blennerhassett

GMO Internet (4784) - GMO Internet Parent Has Been SELLING In The Market

GMO backdoor-listed their ISP/portal biz into GMO Ad Partners (now GMO Internet). Then got a TOPIX listing with 1.2% float. So SQUEEZE. In 9 weeks,...

Travis Lundy

StubWorld: Absent Borrow, GMO Internet (4784) Is An Avoid

The trade is simple - avoid GMO Internet (4784 JP). Or take down borrow, where possible, for the persistent few who are up to the challenge.

David Blennerhassett