Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Bottom-Up

Mirae Asset Securities / Equity Bottom-Up

<ul>
<li>It has been reported in numerous local media outlets that WeBull is discussing with the local financial authorities to enter the Korean retail stock brokerage market.</li>
<li>If the Korean financial authorities provide a license to WeBull to directly provide stock brokerage services to the Korean retail market, this would be the first case ever.</li>
<li>If FSC grants a full license to WeBull to operate stock brokerage services to retail investors in Korea, this could result in the local brokerages losing market shares to WeBull</li>
</ul>


It has been reported in numerous local media outlets that WeBull is discussing with the local financial authorities to enter the Korean retail stock brokerage market.
If the Korean financial authorities provide a license to WeBull to directly provide stock brokerage services to the Korean retail market, this would be the first case ever.
If FSC grants a full license to WeBull to operate stock brokerage services to retail investors in Korea, this could result in the local brokerages losing market shares to WeBull


WeBull In Discussions With Financial Authorities to Enter the Korean Retail Stock Brokerage Market

Cross Asset Strategy

<ul>
<li>On 13 December, the FSS announced that foreign investors will be allowed to start purchasing Korean stocks without prior authorization starting this week. </li>
<li>The revised Capital Market Act will start to be implemented on 14 December repealing the time consuming and inconvenient pre-registration system for foreign investors.  </li>
<li>As a result of the Korean government making this change regulatory change, one of the beneficiaries is likely to be Interactive Brokers Group, Inc (IBKR US).</li>
</ul>


On 13 December, the FSS announced that foreign investors will be allowed to start purchasing Korean stocks without prior authorization starting this week. 
The revised Capital Market Act will start to be implemented on 14 December repealing the time consuming and inconvenient pre-registration system for foreign investors.  
As a result of the Korean government making this change regulatory change, one of the beneficiaries is likely to be Interactive Brokers Group, Inc (IBKR US).


Foreign Investors Allowed to Begin Buying Korean Stocks Without Prior Authorization on 14 December

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

<ul>
<li>We've discussed since late Sept increasing odds of a pullback to confluence of support at 4165-4200/the 200-day MA on SPX, and that if this support holds, it's a normal pullback</li>
<li>Ongoing market dynamics allow us to be even more confident in our unchanged outlook; 4216 was the low for this pullback, with 4200 getting hit overnight (early Wednesday last week).</li>
<li>The broad equity market is not yet out of the woods, but as long as the SPX is above 4165-4200 and the 200-day MA, we are bullish.</li>
</ul>


We've discussed since late Sept increasing odds of a pullback to confluence of support at 4165-4200/the 200-day MA on SPX, and that if this support holds, it's a normal pullback
Ongoing market dynamics allow us to be even more confident in our unchanged outlook; 4216 was the low for this pullback, with 4200 getting hit overnight (early Wednesday last week).
The broad equity market is not yet out of the woods, but as long as the SPX is above 4165-4200 and the 200-day MA, we are bullish.


Growing Confidence That the Lows Are In; 4165-4200/200-Day MA on SPX Remains Key; Buys in Financials

CEO, Rock and Turner

James Emanuel

Rock and Turner

investment advisory company Rock and Turner.

Investment Advisory Company

<ul>
<li>FY20 numbers: Revenue +146%, EBITDA +168%, ROE 119%, new customers +322%, zero long term debt. This exceptional hidden gem of a company is trading at only 3.8x earnings.</li>
<li>"If the value of a company doesn't scream at you, then drop the investment idea and move on to something else", Warren Buffett.</li>
<li>This company is screaming value so loudly that it's deafening.</li>
<li>Far better than its competitors such as Interactive Brokers.</li>
<li>Allow me to introduce you to this opportunity.</li>
</ul>


FY20 numbers: Revenue +146%, EBITDA +168%, ROE 119%, new customers +322%, zero long term debt. This exceptional hidden gem of a company is trading at only 3.8x earnings.
"If the value of a company doesn't scream at you, then drop the investment idea and move on to something else", Warren Buffett.
This company is screaming value so loudly that it's deafening.
Far better than its competitors such as Interactive Brokers.
Allow me to introduce you to this opportunity.


Equity Capital Markets

Robinhood Markets  / Equity Capital Markets

<div class="content-highlight">
<p>Our base case valuation of Robinhood is implied market cap of US$25.1 billion or US$29.8 per share, which is 25% lower than the mid-point of the IPO price range (US$40). Given the downside risk, we would AVOID this IPO. </p>
<ul><li>Our valuation of Robinhood is based on an EV/S multiple of 10.7x using our estimated sales of US$2.1 billion in 2022. <ul>
<li>The EV/S multiple of 10.7x is based on the average multiple of the comps in 2022.</li>
<li>The valuation multiple is higher than the those of online brokers Charles Schwab and Interactive Brokers Group.</li>
<li>However, it is lower than the valuation multiples of the fintech comps including Coinbase and Affirm.</li>
</ul>
</li></ul>
</div>


Our base case valuation of Robinhood is implied market cap of US$25.1 billion or US$29.8 per share, which is 25% lower than the mid-point of the IPO price range (US$40). Given the downside risk, we would AVOID this IPO. 
Our valuation of Robinhood is based on an EV/S multiple of 10.7x using our estimated sales of US$2.1 billion in 2022. 
The EV/S multiple of 10.7x is based on the average multiple of the comps in 2022.
The valuation multiple is higher than the those of online brokers Charles Schwab and Interactive Brokers Group.
However, it is lower than the valuation multiples of the fintech comps including Coinbase and Affirm.




United States

Interactive Brokers Group, Inc. is an automated global electronic market maker and broker specializing in routing orders and executing and processing trades in securities, futures, and foreign exchange instruments.

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Interactive Brokers Group, Inc (IBKR US)

WeBull In Discussions With Financial Authorities to Enter the Korean Retail Stock Brokerage Market

If the Korean financial authorities provide a license to WeBull to directly provide stock brokerage services to the Korean retail market, this...

Douglas Kim

Foreign Investors Allowed to Begin Buying Korean Stocks Without Prior Authorization on 14 December

On 13 December, the FSS announced that foreign investors will be allowed to start purchasing Korean stocks without prior authorization starting...

Douglas Kim

Growing Confidence That the Lows Are In; 4165-4200/200-Day MA on SPX Remains Key; Buys in Financials

Our confidence in our outlook is growing: as long as the $SPX is above 4165-4200 and the 200-day MA, most signs point to this being a normal...

Vermilion Research

Enhance Your Portfolio By Plus500

FY20 numbers: Revenue +146%, EBITDA +168%, ROE 119%, new customers +322%, zero long term debt. This exceptional hidden gem of a company is trading...

James Emanuel

Robinhood IPO Valuation Analysis

Our base case valuation of Robinhood is implied market cap of US$25.1 billion or US$29.8 per share, which is 25% lower than the mid-point of the...

Douglas Kim

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