Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Event-Driven

<ul>
<li>On 28 March, the external auditor of Kum Yang (Samil PriceWaterhouseCoopers) raised warnings about the viability of Kum Yang as a going concern. </li>
<li>The auditor also mentioned increasing probability of Chairman Ryu of Kum Yang potentially selling a portion of his shares to raise further capital.</li>
<li>It is<strong> RARE</strong> for an auditor to raise concerns about a company's viability of the entity as a going concern. This is likely to negatively impact Kum Yang's share price. </li>
</ul>


On 28 March, the external auditor of Kum Yang (Samil PriceWaterhouseCoopers) raised warnings about the viability of Kum Yang as a going concern. 
The auditor also mentioned increasing probability of Chairman Ryu of Kum Yang potentially selling a portion of his shares to raise further capital.
It is RARE for an auditor to raise concerns about a company's viability of the entity as a going concern. This is likely to negatively impact Kum Yang's share price. 


Kum Yang: Auditor Raises Flags on Viability as a Going Concern + Chairman Ryu Could Sell Shares

<ul>
<li>On 27 December, Kum Yang announced that its shares will be listed on the US stock market in the form of DRs, resulting in its shares rising by 11.7%.</li>
<li>The listing of Kum Yang ADRs is likely to have a short-term positive impact on its share price as this is likely to reduce free float of local common shares.</li>
<li>Nonetheless, over the next 6-12 months, we expect Kum Yang's share price to trade much lower (30% or more) as its shares are highly overvalued. </li>
</ul>


On 27 December, Kum Yang announced that its shares will be listed on the US stock market in the form of DRs, resulting in its shares rising by 11.7%.
The listing of Kum Yang ADRs is likely to have a short-term positive impact on its share price as this is likely to reduce free float of local common shares.
Nonetheless, over the next 6-12 months, we expect Kum Yang's share price to trade much lower (30% or more) as its shares are highly overvalued. 


Kum Yang: Announces Its Shares Will Be Listed on the US Stock Market Through ADRs

<ul>
<li>On 30 October, Kum Yang announced that it has submitted an agenda to expand the issuance limit of CB and BW to 10 trillion won.</li>
<li>This increase in the limit of CB and BW issuance to 10 trillion won would mean potential capital raise through these methods that are nearly 2x its entire market cap.</li>
<li>
<strong>Kum Yang may be trying to raise large amount of capital (several trillion won) which could result in significant dilution risk for the existing shareholders.</strong> </li>
</ul>


On 30 October, Kum Yang announced that it has submitted an agenda to expand the issuance limit of CB and BW to 10 trillion won.
This increase in the limit of CB and BW issuance to 10 trillion won would mean potential capital raise through these methods that are nearly 2x its entire market cap.

Kum Yang may be trying to raise large amount of capital (several trillion won) which could result in significant dilution risk for the existing shareholders. 


Kum Yang - Submits An Agenda to Expand Issuance Limit of CB and BW to 10 Trillion Won

Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

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

<ul>
<li>In addition to full market cap and trading value, float-adjusted market cap will be added as a quantitative screening tool. </li>
<li>Regarding extreme price increases, KRX plans to utilize the deviation between the average daily market capitalizations for two, three, and six months leading up to the screening base date.</li>
<li>We should consider designing trading setups that target stocks with relatively low free-float rates and high price volatility in recent months.</li>
</ul>


In addition to full market cap and trading value, float-adjusted market cap will be added as a quantitative screening tool. 
Regarding extreme price increases, KRX plans to utilize the deviation between the average daily market capitalizations for two, three, and six months leading up to the screening base date.
We should consider designing trading setups that target stocks with relatively low free-float rates and high price volatility in recent months.


KRX Plans to Introduce Float Market Cap & Extreme Price Increases to KOSPI 200 Screening

<ul>
<li>The CFD balance information (both overall and individual stock) will be provided by KOFIA and KOSCOM, starting from September 1st.</li>
<li>September 1st also marks the day when local brokerages that temporarily suspended CFD trading services will resume them.</li>
<li>With the disclosure of individual stock CFD balances starting from September 1st, there's a high probability of another volatility turning point.</li>
</ul>


The CFD balance information (both overall and individual stock) will be provided by KOFIA and KOSCOM, starting from September 1st.
September 1st also marks the day when local brokerages that temporarily suspended CFD trading services will resume them.
With the disclosure of individual stock CFD balances starting from September 1st, there's a high probability of another volatility turning point.


Where & How to Check CFD Trading Data Starting Sept 1st

South Korea

Kum Yang Co., Ltd. specializes in manufacturing blowing agents to foam rubber products and polymers.  The Company also produces other basic fine chemicals, such as sulphur products.

Kum Yang (001570 KS)

Kum Yang: Auditor Raises Flags on Viability as a Going Concern + Chairman Ryu Could Sell Shares

After the market close on 3 April, Kum Yang reported that Chairman Ryu sold 4.55% of the company in a block deal at a price of 106,049 won (7.3%...

Douglas Kim

Kum Yang: Announces Its Shares Will Be Listed on the US Stock Market Through ADRs

On 27 December, Kum Yang announced that its shares will be listed on the US stock market in the form of DRs, resulting in its shares rising by 11.7%.

Douglas Kim

Kum Yang - Submits An Agenda to Expand Issuance Limit of CB and BW to 10 Trillion Won

Kum Yang may be trying to raise large amount of capital which could result in significant dilution risk for the existing shareholders.

Douglas Kim

KRX Plans to Introduce Float Market Cap & Extreme Price Increases to KOSPI 200 Screening

This post details KRX's plan to introduce float-adjusted market cap and extreme price increases to screening for the KOSPI 200.

Sanghyun Park

Where & How to Check CFD Trading Data Starting Sept 1st

This post explains where and how to check CFD trading and balance information starting September 1st and discusses the immediate impacts resulting...

Sanghyun Park