Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Event-Driven

<ul>
<li>Samsung Electronics (005930 KS) announced a massive share buyback program worth 10 trillion won which represents 3.1% of its market cap.</li>
<li>Of this total amount, about 3 trillion won will be purchased and cancelled in the next three months. This will include 50,144,628 common shares and 6,912,036 preferred shares.</li>
<li>We believe that this massive share buyback and cancellation is likely to boost Samsung Electronics' share price resulting in a strong outperformance relative to KOSPI in the next 6-12 months. </li>
</ul>


Samsung Electronics (005930 KS) announced a massive share buyback program worth 10 trillion won which represents 3.1% of its market cap.
Of this total amount, about 3 trillion won will be purchased and cancelled in the next three months. This will include 50,144,628 common shares and 6,912,036 preferred shares.
We believe that this massive share buyback and cancellation is likely to boost Samsung Electronics' share price resulting in a strong outperformance relative to KOSPI in the next 6-12 months. 


Samsung Electronics: A Massive 10 Trillion Won Share Buyback Program

Quantitative Researcher, MRM Research

Nico Rosti

Quantitative Researcher

MRM Research

Quantitative Research

Equity Derivatives

<ul>
<li>As reported by <a href="https://www.smartkarma.com/profiles/sanghyun-park" target="_blank" data-smartkarma-citation="accounts:354" rel="noopener">Sanghyun Park</a>, <a href="https://www.smartkarma.com/entities/samsung-electronics-co-ltd" target="_blank" data-smartkarma-citation="entities:191:1" rel="noopener">Samsung Electronics (005930 KS)</a> 's phase 2 buyback disposal plan appears to be virtually finalized (or will be finalized soon - not official yet).</li>
<li>As always, we’ll assess what our tactical models suggest about the trend from here—interpreted alongside the latest catalysts.</li>
<li>We have been monitoring <a href="https://www.smartkarma.com/entities/samsung-electronics-co-ltd" target="_blank" data-smartkarma-citation="entities:191:1" rel="noopener">Samsung Electronics (005930 KS)</a> for a while: the stock has been bottoming, then flat for a while, rallied modestly, now a minor pullback... <strong>time to BUY? <br></strong>
</li>
</ul>


As reported by Sanghyun Park, Samsung Electronics (005930 KS) 's phase 2 buyback disposal plan appears to be virtually finalized (or will be finalized soon - not official yet).
As always, we’ll assess what our tactical models suggest about the trend from here—interpreted alongside the latest catalysts.
We have been monitoring Samsung Electronics (005930 KS) for a while: the stock has been bottoming, then flat for a while, rallied modestly, now a minor pullback... time to BUY?  



Samsung Electronics (005930 KS) Tactical Outlook Amid Rumored Phase 2 Buyback Confirmation

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>CSOP told Korean media this Sammy ETF product targets Korea's local retail traders wanting leveraged or short KOSPI exposure, especially Sammy, without using Korea’s derivatives market—essentially a cross-border retail play.</li>
<li>Korean retail’s insanely strong demand for anything leveraged, combined with limited domestic derivatives access, makes significant local inflows very likely—far from a moonshot.</li>
<li>TRS use doesn’t guarantee 1:1 futures buying—depends on broker hedging. But, with Samsung futures volume surging, heavy retail flows in CSOP ETF could cause contango and a basis arb opportunity.</li>
</ul>


CSOP told Korean media this Sammy ETF product targets Korea's local retail traders wanting leveraged or short KOSPI exposure, especially Sammy, without using Korea’s derivatives market—essentially a cross-border retail play.
Korean retail’s insanely strong demand for anything leveraged, combined with limited domestic derivatives access, makes significant local inflows very likely—far from a moonshot.
TRS use doesn’t guarantee 1:1 futures buying—depends on broker hedging. But, with Samsung futures volume surging, heavy retail flows in CSOP ETF could cause contango and a basis arb opportunity.


CSOP Sammy ETF + Korean Retail Leverage Frenzy = Contango Basis Arb Alert

Asset Allocation & Fund Positioning, Copley Fund Research

Steven Holden

Asset Allocation & Fund Positioning

Copley Fund Research

Copley Fund Research provide research and data on asset allocation among Global and Emerging Market equity funds.  The analysis details absolute and relative positioning across countries, sectors and industries together with highly granular data on single stock and single fund allocations.  The data is updated monthly with time series going back to January 2011.

Global Research - Analysis of 165 prominent Global equity funds, combined AUM $335bn
GEM Research - Analysis of 127 prominent global EM equity funds, combined AUM $250bn

Asset Allocation - Global and GEM Equity

Equity Bottom-Up

<ul>
<li>Global equity fund ownership in Samsung Electronics has dropped to the bottom of its 10-year range.</li>
<li>The percentage of global funds invested has fallen from 32.6% to 23.5% over the past 12-months.</li>
<li>Key Growth investors from Schroders to Templeton exit the stock, leaving an investor base largely comprised of Value oriented funds.</li>
</ul>


Global equity fund ownership in Samsung Electronics has dropped to the bottom of its 10-year range.
The percentage of global funds invested has fallen from 32.6% to 23.5% over the past 12-months.
Key Growth investors from Schroders to Templeton exit the stock, leaving an investor base largely comprised of Value oriented funds.


Samsung Electronics:  Global Funds Hit Rock Bottom

<ul>
<li>In this insight, we discuss some of the key beneficiaries in Korea that could actually stand to gain from such export restrictions. </li>
<li>We also discuss other Korean companies that could be negatively impacted by this move by the Chinese government. </li>
<li>Despite the uncertainties related to China’s export restrictions of rare earths minerals, we do not expect sudden collapse of the entire semiconductor and EVs value-chain in Korea.</li>
</ul>


In this insight, we discuss some of the key beneficiaries in Korea that could actually stand to gain from such export restrictions. 
We also discuss other Korean companies that could be negatively impacted by this move by the Chinese government. 
Despite the uncertainties related to China’s export restrictions of rare earths minerals, we do not expect sudden collapse of the entire semiconductor and EVs value-chain in Korea.


China's Export Restrictions on Rare Earth Minerals - Key Impact on Korean Companies

South Korea

Samsung Electronics Co., Ltd. manufactures a wide range of consumer and industrial electronic equipment and products such as semiconductors, personal computers, peripherals, monitors, televisions, and home appliances including air conditioners and microwave ovens. The Company also produces Internet access network systems and telecommunications equipment including mobile phones.

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Samsung Electronics (SMSN LI)

Samsung Electronics (005930 KS) Tactical Outlook Amid Rumored Phase 2 Buyback Confirmation

Tactical outlook and analysis of Samsung Electronics’ trend patterns—and whether it’s time to buy—amid rumors that Phase 2 of the buyback disposal...

Nico Rosti

CSOP Sammy ETF + Korean Retail Leverage Frenzy = Contango Basis Arb Alert

This post covers CSOP Sammy ETF and Korean retail’s wild appetite for leveraged plays — time to gear up for a juicy basis arb if contango pops off.

Sanghyun Park

Samsung Electronics: Global Funds Hit Rock Bottom

Global equity fund ownership in Samsung Electronics has significantly decreased over the past year, with key growth investors exiting the stock...

Steven Holden

China's Export Restrictions on Rare Earth Minerals - Key Impact on Korean Companies

Despite the uncertainties related to China’s export restrictions of rare earths minerals, we do not expect sudden collapse of the entire...

Douglas Kim

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Samsung Electronics: A Massive 10 Trillion Won Share Buyback Program

Samsung Electronics repurchased 3.39 trillion won (including preferred stocks) from February 19th to May 13th. The average purchase price was...

Douglas Kim

Samsung Electronics (005930 KS) Tactical Outlook Amid Rumored Phase 2 Buyback Confirmation

Tactical outlook and analysis of Samsung Electronics’ trend patterns—and whether it’s time to buy—amid rumors that Phase 2 of the buyback disposal...

Nico Rosti

CSOP Sammy ETF + Korean Retail Leverage Frenzy = Contango Basis Arb Alert

This post covers CSOP Sammy ETF and Korean retail’s wild appetite for leveraged plays — time to gear up for a juicy basis arb if contango pops off.

Sanghyun Park

Samsung Electronics: Global Funds Hit Rock Bottom

​Global equity fund ownership in Samsung Electronics has significantly decreased over the past year, with key growth investors exiting the stock...

Steven Holden

China's Export Restrictions on Rare Earth Minerals - Key Impact on Korean Companies

Despite the uncertainties related to China’s export restrictions of rare earths minerals, we do not expect sudden collapse of the entire...

Douglas Kim

Global equity fund ownership in Samsung Electronics has significantly decreased over the past year, with key growth investors exiting the stock...