Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Index Rebalance

<ul>
<li>
<a href="https://www.smartkarma.com/entities/amazon-com-inc" target="_blank" data-smartkarma-citation="entities:409:1" rel="noopener">Amazon.com Inc (AMZN US)</a> will replace <a href="https://www.smartkarma.com/entities/walgreens-boots-alliance-inc" target="_blank" data-smartkarma-citation="entities:1118:1" rel="noopener">Walgreens Boots Alliance (WBA US)</a> in the <a href="https://www.smartkarma.com/entities/dow-jones-industrial-average" target="_blank" data-smartkarma-citation="entities:22887:1" rel="noopener">Dow Jones Industrial Average (INDU INDEX)</a> at the close on 23 February.</li>
<li>Passives will need to sell a lot of <a href="https://www.smartkarma.com/entities/walmart-inc" target="_blank" data-smartkarma-citation="entities:11134:1" rel="noopener">Walmart (WMT US)</a> following the 3:1 stock split and buy a lot of <a href="https://www.smartkarma.com/entities/amazon-com-inc" target="_blank" data-smartkarma-citation="entities:409:1" rel="noopener">Amazon.com Inc (AMZN US)</a>. </li>
<li>Given the ad hoc nature of the rebalances and the short timeline between announcement and implementation, the stocks could move over the rest of the week.</li>
</ul>



Amazon.com Inc (AMZN US) will replace Walgreens Boots Alliance (WBA US) in the Dow Jones Industrial Average (INDU INDEX) at the close on 23 February.
Passives will need to sell a lot of Walmart (WMT US) following the 3:1 stock split and buy a lot of Amazon.com Inc (AMZN US). 
Given the ad hoc nature of the rebalances and the short timeline between announcement and implementation, the stocks could move over the rest of the week.


Dow Jones Industrials (INDU) Index Rebalance: Amazon (AMZN) Replaces Walgreen Boots (WBA)

Asian Equities Analyst, Logistics & Transport, Tracking Traffic

Daniel Hellberg

Asian Equities Analyst, Logistics & Transport

Tracking Traffic

Focusing on Asian logistics, transportation, and travel companies

Equity Capital Markets

<ul>
<li>A recent report shows apparent gains by Temu against US "dollar" store chains</li>
<li>In this insight we introduce the "dollar" store concept and share our experiences</li>
<li>We conclude that Temu &amp; SHEIN don't likely view some categories as priorities</li>
</ul>


A recent report shows apparent gains by Temu against US "dollar" store chains
In this insight we introduce the "dollar" store concept and share our experiences
We conclude that Temu &amp; SHEIN don't likely view some categories as priorities


Temu Versus Dollar Tree: More Online & Offline Adventures in Pursuit of Ultra-Cheap Stuff

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>Walmart has moved deeper into connected-TV advertising with its reported $1.4 billion acquisition of French ad-tech platform Vibe.co, its largest transaction since the $2.3 billion Vizio purchase in 2024.</li><li>The deal reportedly includes about $1.2 billion in cash and roughly $180 million tied to senior executives and retention, with Vibe CEO Arthur Querou, CTO Franck Tetzlaff, and other employees expected to join Walmart’s advertising unit.</li><li>The timing is notable because Walmart’s latest quarterly update already showed strong momentum in higher-margin commerce solutions: global advertising grew 37%, Walmart U.S. advertising rose 36%, U.S. marketplace sales expanded nearly 50%, and enterprise eCommerce increased 26%.</li></ul>

Walmart has moved deeper into connected-TV advertising with its reported $1.4 billion acquisition of French ad-tech platform Vibe.co, its largest transaction since the $2.3 billion Vizio purchase in 2024.The deal reportedly includes about $1.2 billion in cash and roughly $180 million tied to senior executives and retention, with Vibe CEO Arthur Querou, CTO Franck Tetzlaff, and other employees expected to join Walmart’s advertising unit.The timing is notable because Walmart’s latest quarterly update already showed strong momentum in higher-margin commerce solutions: global advertising grew 37%, Walmart U.S. advertising rose 36%, U.S. marketplace sales expanded nearly 50%, and enterprise eCommerce increased 26%.

Walmart's Latest Takeover Play Could Help It Chase Amazon’s Ad Machine!

<ul><li>Walmart Inc. reported strong sales growth in the first quarter of fiscal 2027, with constant currency revenue increasing nearly 6%, surpassing the high end of guidance by 120 basis points.</li><li>This growth was driven by a combination of factors, including momentum in eCommerce, which rose 26% globally, and a nearly 50% increase in marketplace sales in the U.S., the highest in 2.5 years.</li><li>The company highlighted strong transaction growth and unit increases, especially in the U.S., where transaction growth was the strongest in six quarters.</li></ul>

Walmart Inc. reported strong sales growth in the first quarter of fiscal 2027, with constant currency revenue increasing nearly 6%, surpassing the high end of guidance by 120 basis points.This growth was driven by a combination of factors, including momentum in eCommerce, which rose 26% globally, and a nearly 50% increase in marketplace sales in the U.S., the highest in 2.5 years.The company highlighted strong transaction growth and unit increases, especially in the U.S., where transaction growth was the strongest in six quarters.

Walmart’s Three-Hour Delivery Push: Can Speed Defend Its Retail Advantage?

High Conviction Concentrated Growth Investing, Fallacy Alarm

Fallacy Alarm

High Conviction Concentrated Growth Investing

High conviction concentrated growth investing. Blends single stock, macro and thematic research into powerful long and short ideas. I am convinced that a robust and comprehensive investment process requires macro and micro considerations. And it requires a deep understanding what you are looking for and what you are invested in. Digitization has changed the dynamics both how businesses operate and how investors compete for returns. Ideas can scale much faster and fail much faster than before. The biggest value creation happens before it can be spotted in financial statements. As a result, my approach can be best summarized as high conviction, high concentration growth investing, embedded into a macro framework built on the realization that our current demographic set-up, monetary paradigm and innovation cycle will likely deliver a strong decade for nominal and real returns of productive assets.

<ul><li>From 2010 to 2021, the median EV/revenue multiple of America’s leading consumer brand companies expanded from just 2x to over 5x.</li><li>The values of large consumer brands were skyrocketing. They were ideal vehicles to push products to oversaturated consumers.</li><li>Multiples have compressed since then. Today, markets deem a consumer brand revenue Dollar about 45% less valuable than they did in late 2021. </li></ul>

From 2010 to 2021, the median EV/revenue multiple of America’s leading consumer brand companies expanded from just 2x to over 5x.The values of large consumer brands were skyrocketing. They were ideal vehicles to push products to oversaturated consumers.Multiples have compressed since then. Today, markets deem a consumer brand revenue Dollar about 45% less valuable than they did in late 2021. 

United States

Walmart Inc. operates discount stores, supercenters, and neighborhood markets. The Company offers merchandise such as apparel, house wares, small appliances, electronics, musical instruments, books, home improvement, shoes, jewelry, toddler, games, household essentials, pets, pharmaceutical products, party supplies, and automotive tools. Walmart serves customers worldwide.

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Walmart (WMT US)

Dow Jones Industrials (INDU) Index Rebalance: Amazon (AMZN) Replaces Walgreen Boots (WBA)

Amazon replaces Walgreen Boots in the Dow Jones Industrial Average at the close on 23 February following Walmart's stock split. There will be over...

Brian Freitas

Temu Versus Dollar Tree: More Online & Offline Adventures in Pursuit of Ultra-Cheap Stuff

In this insight, we introduce readers to the US "dollar" store concept, then compare our experiences shopping for cheap stuff at Dollar Tree and...

Tracking Traffic

Walmart's Latest Takeover Play Could Help It Chase Amazon’s Ad Machine!

Walmart has moved deeper into connected-TV advertising with its reported $1.4 billion acquisition of French ad-tech platform Vibe.co, its largest...

Baptista Research

Walmart’s Three-Hour Delivery Push: Can Speed Defend Its Retail Advantage?

Walmart Inc. reported strong sales growth in the first quarter of fiscal 2027, with constant currency revenue increasing nearly 6%, surpassing the...

Baptista Research

The Death of Consumer Brands?

From 2010 to 2021, the median EV/revenue multiple of America’s leading consumer brand companies expanded from just 2x to over 5x.

Fallacy Alarm

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