IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Event-Driven

With the shares hitting all-time highs, <a href="https://www.smartkarma.com/entities/27250" target="_blank" data-smartkarma-citation="entities:27250:1">Pinduoduo (PDD US)</a> announced a follow-on public offering to raise net proceeds (potentially of $1.1 billion) from the sale of 37 million ADS along with the placing of 14.8 million ADS from existing shareholders (post-lockup expiry).<div class="content-highlight">We have been bulls on Pinduoduo with the shares up 60% since its IPO. While Pinduoduo is a good company, we believe this follow-on offering is highly opportunistic and provides limited upside to investors participating in this offering.</div>

With the shares hitting all-time highs, Pinduoduo (PDD US) announced a follow-on public offering to raise net proceeds (potentially of $1.1 billion) from the sale of 37 million ADS along with the placing of 14.8 million ADS from existing shareholders (post-lockup expiry).We have been bulls on Pinduoduo with the shares up 60% since its IPO. While Pinduoduo is a good company, we believe this follow-on offering is highly opportunistic and provides limited upside to investors participating in this offering.

Pinduoduo (PDD US): Follow-On Offering Is a Smart Move for the Company, Rather than for Investors

Founder, Riedel Research

David Riedel

Founder

Independent equity research on GEM Markets

Riedel Research

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Thematic (Sector/Industry)

<ul>
<li>US-China trade negotiations are focusing on the easy parts to avoid truly difficult discussions on thornier structural issues. </li>
<li>Beijing is trying to buy their way to a compromise by taking out their checkbook and promising to buy more US products. </li>
<li>A truly comprehensive trade pact will be difficult, perhaps even impossible, to reach. That’s because many of the problems Washington wants resolved in China will require more than a few regulatory tweaks. </li>
<li>The bureaucratic harassment, theft of intellectual property, and overt favoritism toward local firms that make doing business in China difficult for American chief executives are caused by the very way the Chinese economy works.</li>
<li>Changing these procedures means changing China’s basic economic system. Beijing’s leaders cannot possibly achieve such an overhaul in the short term—assuming they even want to.</li>
</ul><a href="https://www.cnbc.com/video/2019/01/23/us-china-trade-endgame-is-unclear-says-expert.html" target="_blank">CNBC Interview of David Riedel on US-China Trade</a>


US-China trade negotiations are focusing on the easy parts to avoid truly difficult discussions on thornier structural issues. 
Beijing is trying to buy their way to a compromise by taking out their checkbook and promising to buy more US products. 
A truly comprehensive trade pact will be difficult, perhaps even impossible, to reach. That’s because many of the problems Washington wants resolved in China will require more than a few regulatory tweaks. 
The bureaucratic harassment, theft of intellectual property, and overt favoritism toward local firms that make doing business in China difficult for American chief executives are caused by the very way the Chinese economy works.
Changing these procedures means changing China’s basic economic system. Beijing’s leaders cannot possibly achieve such an overhaul in the short term—assuming they even want to.
CNBC Interview of David Riedel on US-China Trade

China Strategy of Promising to Buy Stuff Just Might Work on Trump as He Looks for an Easy “victory”

Overseas Chinese Equities, Aequitas Research

Ming Lu

Overseas Chinese Equities

Equity Capital Markets

East Buy Holding  / Equity Capital Markets

<ul class="">
<li>Koolearn updated its IPS prospectus and posted operating losses for 1H2019 (ended Nov. 2018).</li>
<li>The company spent significantly on online promotion, but we believe that online promotion is not useful.</li>
<li>We also believe online marketing expenditures are not a productive use of the Company's cash, as Koolearn's brand was already well known among consumers due to its parent company, New Oriental.</li>
</ul>


Koolearn updated its IPS prospectus and posted operating losses for 1H2019 (ended Nov. 2018).
The company spent significantly on online promotion, but we believe that online promotion is not useful.
We also believe online marketing expenditures are not a productive use of the Company's cash, as Koolearn's brand was already well known among consumers due to its parent company, New Oriental.


Koolearn: Marketing Expenses Have Taken Operating Profits Down the Drain

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Last Week in Event SPACE: Toppan, Hyundai Heavy, Descente, Healthscope, Eclipx, Pioneer, Earthport

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

<a href="https://www.smartkarma.com/entities/22839" target="_blank" data-smartkarma-citation="entities:22839:1">Netmarble Games (251270 KS)</a> officially announced on January 31st that it is interested in buying Nexon/NXC Corp. We believe that there is a growing likelihood of a potential consortium which includes Tencent and Netmarble Games to acquire NXC Corp/Nexon. Three major reasons why Tencent may want to partner with Netmarble Games to acquire NXC Corp/Nexon include the following:<ul>
<li>Avoid the cultural backlash from Korean gamers</li>
<li>Among all the companies that Tencent has invested in Korea, Netmarble Games has become the biggest in amount. </li>
<li>Netmarble Games is more focused on games and has a stronger balance sheet than Kakao Corp, which has also shown interest in acquiring NXC Corp/Nexon. </li>
</ul>

Netmarble Games (251270 KS) officially announced on January 31st that it is interested in buying Nexon/NXC Corp. We believe that there is a growing likelihood of a potential consortium which includes Tencent and Netmarble Games to acquire NXC Corp/Nexon. Three major reasons why Tencent may want to partner with Netmarble Games to acquire NXC Corp/Nexon include the following:
Avoid the cultural backlash from Korean gamers
Among all the companies that Tencent has invested in Korea, Netmarble Games has become the biggest in amount. 
Netmarble Games is more focused on games and has a stronger balance sheet than Kakao Corp, which has also shown interest in acquiring NXC Corp/Nexon. 


Netmarble Games + Tencent = The Most Likely Consortium to Acquire NXC Corp/Nexon?

China

Tencent Holdings Limited operates as an investment holding company. The Company, through its subsidiaries, provides Internet and mobile value-added services (VAS), online advertising, and e-commerce transactions. Tencent Holdings offers services to users worldwide.

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Tencent (700 HK)

Pinduoduo (PDD US): Follow-On Offering Is a Smart Move for the Company, Rather than for Investors

With the shares hitting all-time highs, Pinduoduo (PDD US) announced a follow-on public offering to raise net proceeds (potentially of $1.1...

Arun George

China Strategy of Promising to Buy Stuff Just Might Work on Trump as He Looks for an Easy “victory”

US-China trade negotiations are focusing on the easy parts to avoid truly difficult discussions on thornier structural issues. Beijing is trying...

David Riedel

Koolearn: Marketing Expenses Have Taken Operating Profits Down the Drain

Koolearn updated its IPS prospectus and posted operating losses for 1H2019 (ended Nov. 2018). The company spent significantly on online promotion,...

Ming Lu

Last Week in Event SPACE: Toppan, Hyundai Heavy, Descente, Healthscope, Eclipx, Pioneer, Earthport

Last Week in Event SPACE ... Toppan Printing (7911 JP)'s management prefers to run a long/short fund rather than support the company's...

David Blennerhassett

Netmarble Games + Tencent = The Most Likely Consortium to Acquire NXC Corp/Nexon?

Netmarble Games (251270 KS) officially announced on January 31st that it is interested in buying Nexon/NXC Corp. We believe that there is a growing...

Douglas Kim

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