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 remain near-term bullish since 4/22/25, we continue to believe SPX and ACWI-US likely bottomed at 4800-4820 and $101-$102 (May 13, 2025 report), and our intermediate-term outlook remains bullish also.</li>
<li>We'll maintain our bullish view as long as dynamics remain healthy and SPX and ACWI-US are above 5500 and $115, but we do not expect these levels to be tested.</li>
<li>We expect 5700-5785 on SPX and $120-$121 on ACWI-US to hold as support; considering the historic run up, don't be surprised to see another week or two of consolidation.</li>
</ul>


We remain near-term bullish since 4/22/25, we continue to believe SPX and ACWI-US likely bottomed at 4800-4820 and $101-$102 (May 13, 2025 report), and our intermediate-term outlook remains bullish also.
We'll maintain our bullish view as long as dynamics remain healthy and SPX and ACWI-US are above 5500 and $115, but we do not expect these levels to be tested.
We expect 5700-5785 on SPX and $120-$121 on ACWI-US to hold as support; considering the historic run up, don't be surprised to see another week or two of consolidation.


MSCI ACWI Coiling Under All-Time Highs; Buying Korean Financials; Monitoring Europe for Downgrade

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Equity Capital Markets

LS Marine Solution / Equity Capital Markets

<ul>
<li>After the market close on 26 May, LS Marine Solution (060370 KS) announced that it plans to conduct a capital raise worth 278.3 billion won.</li>
<li>LS Marine Solution plans to issue 19.57 million new shares in this capital raise, which represents 60% of its outstanding shares. </li>
<li>Despite the company's strong sales and profit growth, LS Marine Solution's valuation multiples may be a bit too aggressive, especially with the major rights offering that will dilute existing shareholders. </li>
</ul>


After the market close on 26 May, LS Marine Solution (060370 KS) announced that it plans to conduct a capital raise worth 278.3 billion won.
LS Marine Solution plans to issue 19.57 million new shares in this capital raise, which represents 60% of its outstanding shares. 
Despite the company's strong sales and profit growth, LS Marine Solution's valuation multiples may be a bit too aggressive, especially with the major rights offering that will dilute existing shareholders. 


LS Marine Solution: Rights Offering Capital Raise of 278 Billion Won

Event-Driven

<ul>
<li>On 22 April, LS Cable &amp; System announced that it plans to acquire up to 70 billion won worth of Gaon Cable.</li>
<li>If LS Cable purchases 70 billion won worth of Gaon Cable's shares (7.4% stake at current price), its stake in the company would rise to 89%. </li>
<li>There are numerous options for Gaon Cable going forward including privatization or a merger with LS Cable. </li>
</ul>


On 22 April, LS Cable &amp; System announced that it plans to acquire up to 70 billion won worth of Gaon Cable.
If LS Cable purchases 70 billion won worth of Gaon Cable's shares (7.4% stake at current price), its stake in the company would rise to 89%. 
There are numerous options for Gaon Cable going forward including privatization or a merger with LS Cable. 


LS Cable Plans to Purchase Up To 70 Billion Won of Gaon Cable - Will It Take It Private?

Equity Bottom-Up

<ul>
<li><em><strong>Lee Jae-Myung (who is leading in most election polls) has mentioned cancellation of treasury shares as one of the key campaign pledges to improve the corporate governance in Korea.</strong></em></li>
<li>If the cancellation of these shares becomes mandatory, the SK Group and Lotte Group will be most affected. </li>
<li>We provide a list of 21 stocks in KOSPI200 that have the highest ratios for treasury shares/total outstanding shares. These stocks could receive more attention in the next several months. </li>
</ul>


Lee Jae-Myung (who is leading in most election polls) has mentioned cancellation of treasury shares as one of the key campaign pledges to improve the corporate governance in Korea.
If the cancellation of these shares becomes mandatory, the SK Group and Lotte Group will be most affected. 
We provide a list of 21 stocks in KOSPI200 that have the highest ratios for treasury shares/total outstanding shares. These stocks could receive more attention in the next several months. 


Lee Jae-Myung's Campaign Pledge - Cancellation of Treasury Shares

<ul>
<li>In this insight, we discuss a pair trade between Korean Air Lines (003490 KS) (go long) and Hanjin KAL Corp (180640 KS) (go short). </li>
<li>In the past three months as well as 12 months, there has been a sharp increase in the gap of Korean Air Lines and Hanjin KAL Corp. </li>
<li>It is uncertain how much longer Hoban Group will maintain its stake in Hanjin Kal. Hoban could reduce its stake in Hanjin Kal but increase its stake in LS Corp. </li>
</ul>


In this insight, we discuss a pair trade between Korean Air Lines (003490 KS) (go long) and Hanjin KAL Corp (180640 KS) (go short). 
In the past three months as well as 12 months, there has been a sharp increase in the gap of Korean Air Lines and Hanjin KAL Corp. 
It is uncertain how much longer Hoban Group will maintain its stake in Hanjin Kal. Hoban could reduce its stake in Hanjin Kal but increase its stake in LS Corp. 


A Pair Trade Between Korean Air and Hanjin Kal

South Korea

LS Corp is a holding company, which operated subsidiaries including LS Industrial Systems, LS Cable, LS-Nikko Copper and LS Mtron.

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LS Corp (006260 KS)

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MSCI $ACWI Coiling Under All-Time Highs; Monitoring Europe for Downgrade; Buying Korean Financials $WF $SHG $KB and Hana. Still Bullish, expecting...

Vermilion Research

LS Marine Solution: Rights Offering Capital Raise of 278 Billion Won

Despite the company's strong sales and profit growth, LS Marine Solution's valuation multiples may be a bit too aggressive, especially with the...

Douglas Kim

LS Cable Plans to Purchase Up To 70 Billion Won of Gaon Cable - Will It Take It Private?

LS Cable & System announced that it plans to acquire up to 70 billion won of Gaon Cable. There are numerous options for Gaon Cable going forward...

Douglas Kim

Lee Jae-Myung's Campaign Pledge - Cancellation of Treasury Shares

Lee Jae-Myung (who is leading in most election polls) has mentioned cancellation of treasury shares as one of the key campaign pledges to improve...

Douglas Kim

A Pair Trade Between Korean Air and Hanjin Kal

In this insight, we discuss a pair trade between Korean Air Lines (003490 KS) (go long) and Hanjin KAL Corp (180640 KS) (go short).

Douglas Kim

Price Gauge

52-week Range

Market Cap (USDm)

P/E

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