Smartkarma Daily Briefs

Dye & Durham/DND has proposed a revised Link Administration (LNK AU) offer to address any FCA redress payments. Around A$1.00 per share will hang on the outcome of the FCA investigation.
The Link Board has said it cannot recommend the revised proposal based on value, structure and alternatives available to Link. We agree with the Board’s view.
The scheme is all but dead. The shares are now a back-end play and remain attractive for value investors.

Taiwan Tech Weekly: Biden Says US Will Defend Taiwan, Texas Instruments Gives Hope

By Vincent Fernando, CFA

Biden makes the most definitive statement to date that the US will defend Taiwan.
Texas Instruments hikes dividend, annouces additional buyback. Will other cash rich semiconductor stocks follow suit?
Intel vs. TSMC/UMC Trade Monitor: We look at performance streaks for the pairs. Intel outperforming over the last trading sessions.

Meituan (3690 HK): User Base Beating Competitor, Industry Recovering, Upgrade to Hold

By Ming Lu

In July, Meituan’s user base exceeded Ele.me and Ele.me’s active user base decreased by 24% YoY.
In China, Monthly active user bases of local life and food delivery recovered from May to July.
We believe Meituan’s stock has only a downside of 6% for year end 2023.

Post-Merge Market Mayhem

By Kaiko

Price Movements: ETH is down 25% on the week despite the successful completion of the Merge.
Market Liquidity: The U.S. dollar remains the dominant fiat currency in crypto, possessing 70% of total fiat trade volume.
Derivatives: ETH funding rates have returned to neutral after dipping to all time lows of less than -0.4%.

Broadcom Inc: Collaboration With Dell & Other Drivers

Broadcom reported an all-around beat in the quarter with an increase in revenues in semiconductor solutions and infrastructure software.
Service and cloud provider growth remained strong in the quarter, driven by infrastructural upgrades and data center build-outs.
As both enterprise and cloud data centers refresh, they continue to increase the adoption of the company’s Jericho, Trident, and Tomahawk switching silicon platforms.

Uber Technologies: AV-Based Food Delivery Pilot & Other Developments

Uber Technologies delivered a mixed quarterly result with revenues above expectations resulting from an increase in the annualized run rate and gross bookings.
The company failed to meet market expectations on the earnings front as a result of considerable forex challenges through it did generate a positive free cash flow.
The top-line growth of the company continues to be durable and the onboarding process has shown a significant improvement.

HP Inc.: Weakened Macro & Other Developments

HP Inc also had a significantly below par result along with its rival, Dell Technologies as the industry cycle has commenced its downward trend after the huge upswing during the pandemic.
The results of this quarter were impacted by macroeconomic challenges, which included a significant slowdown in consumer demand to geopolitical, currency, and inflation challenges.
Recently, the company introduced its HP Instant Ink for its small business and its innovative LaserJet Pro with HP+.

Autodesk Inc: Introduction of AutoCAD Web & Other Drivers

Autodesk reported a solid quarter in terms of revenue, free cash flow, and non-GAAP operating margin.
The end market’s demand remained strong for the company and it delivered another all-around beat.
Among key developments, Autodesk introduced AutoCAD Web, a new combined subscription to AutoCAD Web and AutoCAD Mobile from Autodesk with improved access to drawings.

Match Group: The League Acquisition & Other Drivers

Match Group had a weak quarter with a below-par growth in the total revenue that resulted in the company failing to meet Wall Street expectations.
The direct revenue of the company grew in the U.S with strength at Tinder, Chipsa, BLK, and Hinge.
Additions of Tinder payers came in addition, while the established brands of the company, including Match Infinity brands and Match, Plenty of Fish, OkCupid, and Meetic, declined more than 10% in total.

Zscaler Inc: New Feature Additions

Zscaler continued with its robust growth story and delivered yet another all-around beat in the recent result with 15% free cash flow margins, 63% year-over-year revenue growth, and a 54% year-over-year billing increase in the third quarter.
The company saw a considerable increase in Q3 in the number of new deals for $1 million or more across the most important customer sectors.
In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Sep 20

Daily Brief Consumer: Seven & I Holdings, Porsche AG, Jyp Entertainment, Hyundai Greenfood, Etsy Inc, Best Buy Co Inc, Church & Dwight Co, Under Armour, WD-40 Company and more

By Smartkarma Daily Briefs | Consumer, Daily Briefs

In today’s briefing:

Seven & I: Going Strong in Overseas, Another Beat On the Cards
Porsche IPO Preview
Smartkarma Webinar | ESG Risks in Korea
Trading Angles of Hyundai Green Food Demerger, with Potential Tender & Hive-Off
Etsy Inc: New Purchase Protection Feature & Other Developments
Best Buy Inc: New Small Format Digital-First Store & Other Drivers
Church & Dwight: The Hero Acquisition & Other Drivers
Under Armour Inc: Digital Strategy & Other Drivers
WDFC: Expectations Set for Disappointment

Seven & I: Going Strong in Overseas, Another Beat On the Cards

By Oshadhi Kumarasiri

After raising guidance yet again in 1QFY23 through stronger than expected performance in the overseas business, Seven & I is scheduled to release Q2 results on 6th October 2022.
We are optimistic that 2QFY23 could provide the platform for Seven & I to break the ¥6,100 level, at which the share-price has been stuck for the first 9-months 2022.
This is because, we are seeing a significant improvement in Seven & I’s domestic performance while, North America is carrying the growth momentum that been there since the Speedway-acquisition.

Porsche IPO Preview

By Douglas Kim

The Porsche IPO is expected to be the second largest IPO ever in Germany. Total proceeds from the IPO will be 18.1 billion to 19.5 billion euros.
The IPO price range is from 76.50 euros to 82.50 euros per share, which suggests a valuation of 70 billion to 75 billion euros.
After the IPO, Volkswagen will have an extraordinary shareholders meeting in December to propose to pay 49% of total proceeds to shareholders in early 2023 as a special dividend.

Smartkarma Webinar | ESG Risks in Korea

By Smartkarma Research

In our next Webinar, we welcome Analyst Soo Young Kim , who will take us through the ESG risks present in South Korea and her analysis based on negative ESG incidents.

The webinar will be hosted on Wednesday, 21 September 2022, 17:00 SGT/HKT.

Register for the Webinar here

Soo Young is the Head of ESG Intelligence at Who’s Good, Asia’s first AI-driven ESG Insight Provider. Using AI technologies and public data, Who’s Good provides objective and up-to-date corporate ESG insights on Asian companies.

Trading Angles of Hyundai Green Food Demerger, with Potential Tender & Hive-Off

By Sanghyun Park

The value accretion that will occur by unlocking treasury shares will be more significant than Hyundai Dept. The treasury shares account for 10.64%, compared with 6.61% for Hyundai Dept.
Neither Holdco nor Opco will likely remain in the KOSPI 200 after relisting. So we cannot expect PASSIVE inflow at the time of relisting.
A tender will likely follow. However, neither is available for shorting. So, we should use Opco’s overheated price adjustment as an exit timing for our positions aimed at value accretion.

Etsy Inc: New Purchase Protection Feature & Other Developments

Etsy recently launched the Etsy Purchase Protection program where buyers will get a total refund for purchases they make on Etsy.com in cases that do not match the item description, never arrive, or arrive damaged.
This new program aims at making shopping on the website more worry-free.
The purchase Protection Program of Etsy will complement the company’s brand efforts in improving customer support, maintaining integrity in its marketplace as a destination for special and unique items, and increasing trust signals over the user experience.

Best Buy Inc: New Small Format Digital-First Store & Other Drivers

Best Buy delivered a decent result this quarter surpassing Wall Street expectations on all counts.
Best Buy is also viewing more interest in the sales events such as tax-free events, prime day, and other events that are geared at an exceptional value.
Best Buy also opened new outlet stores, finished store remodels, and started to implement newly signed deals with healthcare companies.

Church & Dwight: The Hero Acquisition & Other Drivers

Church & Dwight has recently been in the news for its acquisition of the Hero Might Patch brand.
In the last quarter, Church & Dwight increased consumption in 11 of the 17 categories in which they participate, in some cases on top of significant increases in consumption from the previous year.
One of their acquisitions, Therabreath, had a great quarter with 33% consumption growth.

Under Armour Inc: Digital Strategy & Other Drivers

Under Armour’s brand strength helped the company deliver an all-around beat while navigating the present environment.
The company’s financial performance has been decent as its wholesale revenue increased while the eCommerce revenue and direct-to-consumer revenue decreased.
The company is planning to launch a new footwear platform, Kevin, that can change the landscape of athletic footwear.

WDFC: Expectations Set for Disappointment

By Hamed Khorsand

The recent decline in crude oil has resulted in optimism WDFC’s gross margin would improve. There is a delay before WDFC sees a benefit/impact from the price of oil
We continue to maintain our viewpoint of WDFC experiencing slower demand for its products from consumers and retailers holding back on orders
WDFC’s exposure to international markets could negatively impact sales due to the strong US Dollar

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Sep 20

Daily Brief Health Care: Aier Eye Hospital Group, Agilent Technologies, Pfizer Inc and more

By Smartkarma Daily Briefs | Daily Briefs, Healthcare

In today’s briefing:

Aier Eye Hospital (300015.CH) 22H1 – More Downside Ahead; The Long Logic Doesn’t Exist
Agilent Technologies: New Launches In Mass Spectrometry & Other Drivers
Pfizer Inc.: The Global Blood Therapeutics Acquisition & Other Drivers

Aier Eye Hospital (300015.CH) 22H1 – More Downside Ahead; The Long Logic Doesn’t Exist

By Xinyao (Criss) Wang

The fundamental changes in the population structure will lead to a decline in the growth rate of the total retail sales of consumer goods. The long logic doesn’t exist.
Aier has hit a growth ceiling. As the endogenous demand will be stepped downward gradually, the performance of Aier will further decline. The downward elasticity of valuation is greater.
It is still difficult for healthcare sector to have its own independent growth logic. The bottom of healthcare sector would appear after the collapse of Aier’s valuation.

Agilent Technologies: New Launches In Mass Spectrometry & Other Drivers

Agilent Technologies delivered an excellent quarterly result with earnings and revenue exceeding market expectations significantly.
The strong results were led by strength in its biggest markets i.e., chemical, energy, and pharma.
We provide the stock of Agilent Technologies with a ‘Hold’ rating with a revision in the target price.

Pfizer Inc.: The Global Blood Therapeutics Acquisition & Other Drivers

While operating in a difficult foreign exchange environment, Pfizer maintained a good operational performance in the second quarter and delivered an all-around beat, exceeding Wall Street expectations on all counts.
The chance of a future variety that combines the severity of the original virus with the contagiousness of Omicron nevertheless persists.
Among major updates, Pfizer went on to acquire Global Blood Therapeutics to strengthen its commitment to sickle cell disease.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Sep 20

Daily Brief Industrials: Toshiba Corp, WCP and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Toshiba (6502 JP) Getting Closer to Crunch Time So Ongoing News “Leaks” Likely
Toshiba – Japan Industrial Partners The Only Real Bid?
WCP IPO: Final IPO Price Set, Still an Avoid

Toshiba (6502 JP) Getting Closer to Crunch Time So Ongoing News “Leaks” Likely

Three interviews and comments by Senior Toshiba Boardmembers (chairperson and head of Special Committee) and the CEO prep the ground for a full company deal, or no deal.
If no deal, there’s downside to the 5yr average Toshiba/Peers ratio. If you see 50% deal probability, at mid ¥6000s or better, IRRs are OK. But there is jump risk.
I don’t see the activists just deciding to bail en masse if no deal. I think they take it further, which means I think the Board wants a deal.

Toshiba – Japan Industrial Partners The Only Real Bid?

By Mio Kato

Since the second of Jun Toshiba is down 14.7% while TOPIX is up 0.7%.
This underperformance against TOPIX and industry peers suggests that some of the implied acquisition premium has dissipated.
With reasonable potential for some form of bid coming through we consider the news about Japan Industrial Partners growing its consortium.

WCP IPO: Final IPO Price Set, Still an Avoid

WCP (WCP KS), a lithium-ion batteries separator company, has set its IPO price at KRW60,000 per share, a hefty 25-40% discount on the “desired” IPO price range of KRW80,000-100,000.
The target raise has declined from KRW720-900 billion (US$517-646 million) to KRW432 billion (US$310 million) due to the lower IPO price and offer shares.
While the final IPO price is now reasonable, the process smacks desperation and calls into question the credibility of the syndicate’s forecasts. This is still an avoid.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Sep 20

Most Read: Elan Microelectronics, Shanghai United Imaging Healthcare, Toshiba Corp, Link Administration, OZ Minerals Ltd, Sembcorp Marine, Onewo Space-Tech, Hyundai Dept Store Co and more

By Smartkarma Daily Briefs | Daily Briefs, Most Read

In today’s briefing:

Taiwan Div+ Index Basket Trade Review – Time To Swing The Other Direction
Index Rebalance & ETF Flow Recap: STAR50, PCOMP, SET50, AMFI, ALX
Toshiba (6502 JP) Getting Closer to Crunch Time So Ongoing News “Leaks” Likely
That’s It Then As Link Admin Rejects D&D’s Revised Terms
OZ Minerals May Be Narrowing the Price Gap to a BHP Deal
FTSE Straits Times Index (STI): Quiddity Primer
Onewo Space-Tech IPO – Appears Digestible Even on Conservative Assumptions
A Walkthrough of Hyundai Department Store Demerger Event
Toshiba – Japan Industrial Partners The Only Real Bid?
Link’s On Again-Off Again Scheme Is All but Off

Taiwan Div+ Index Basket Trade Review – Time To Swing The Other Direction

In August, Janaghan Jeyakumar, CFA published his leaderboard and flow estimates for the FTSE Taiwan Dividend+ Rebalance which starts today and runs through next Thursday.
Late in August, I recommended a basket trade. Since then, the BUY basket has outperformed the SELL basket by 7.6%. Set & Forget it is up 7.2%.
I provided timing in the basket trade. Now it is time to swing the other way.

Index Rebalance & ETF Flow Recap: STAR50, PCOMP, SET50, AMFI, ALX

By Brian Freitas

It was a busy week with a bunch of index rebalances being implemented at the close of trading on Friday.
We list out potential changes to the STAR50 INDEX, Philippines Stock Exchange PSEi Index (PCOMP INDEX) and SET50 INDEX at the upcoming rebalances.
There was a large outflow from the iShares MSCI ACWI ETF (ACWI US) for yet another week.

Toshiba (6502 JP) Getting Closer to Crunch Time So Ongoing News “Leaks” Likely

Three interviews and comments by Senior Toshiba Boardmembers (chairperson and head of Special Committee) and the CEO prep the ground for a full company deal, or no deal.
If no deal, there’s downside to the 5yr average Toshiba/Peers ratio. If you see 50% deal probability, at mid ¥6000s or better, IRRs are OK. But there is jump risk.
I don’t see the activists just deciding to bail en masse if no deal. I think they take it further, which means I think the Board wants a deal.

That’s It Then As Link Admin Rejects D&D’s Revised Terms

By David Blennerhassett

After 23 months of negotiations, various bids from various parties, culminating in a protracted on-again, off-again, negotiation with Dye & Durham, Link Administration (LNK AU) has called it a day.
D&D arguably did the right thing and tabled a revised proposal to account for any enforcement process after the UK’s FCA raised redress payments. Link has rejected the revised terms.
Link will now pursue an in-specie distribution of a minimum of 80% of Link’s shareholding in PEXA Group (PXA AU).

OZ Minerals May Be Narrowing the Price Gap to a BHP Deal

Six+ weeks ago, BHP Group Ltd (BHP AU) approached OZ Minerals Ltd (OZL AU) with a bid of A$25/share. Oz very quickly rejected it and said it was worth more.
The back and forth immediately post-rejection was not conciliatory. My expectation was that if they came back quickly, they’d have to pay A$30. But coming back quickly was tough.
There are hints now that may be the price. But it may not be. It will take time.

FTSE Straits Times Index (STI): Quiddity Primer

By Janaghan Jeyakumar, CFA

FTSE Straits Times Index (STI) (STI INDEX) consists of the 30 largest companies listed in the Singapore Stock Exchange (SGX).
This is one of the well-known national blue-chip indices in the Asia-Pacific region.
In this insight, we will have a look at the selection criteria and the historical price performance of past Rebalance Events.

Onewo Space-Tech IPO – Appears Digestible Even on Conservative Assumptions

By Sumeet Singh

Onewo Space-Tech (ONEWO HK) (OST) aims to raise upto US$784m in its Hong Kong IPO. OST is a property management service provider primarily owned by China Vanke (2202 HK).
As per Frost & Sullivan, amongst the residential community service providers in China, OST ranked first. It also ranked first in the commercial space integrated services market in China.
In this note, we will run the deal through our ECM framework and talk about valuations.

A Walkthrough of Hyundai Department Store Demerger Event

By Sanghyun Park

This is an equity spinoff where the existing shareholders receive shares in the spun-off company. But this creates two LISTED companies. In such a case, there won’t be appraisal rights.
PASSIVE’s selling flow towards the trade suspension tends to be offset by ACTIVE’s buying flow aiming for value accretion. So, developing a timely entry/exit between these opposing flows is critical.
Holdco’s 30% rule dynamic generally, in relative terms, leads to an increase in the value of Opco’s stake and a decline in the value of Holdco’s stake.

Toshiba – Japan Industrial Partners The Only Real Bid?

By Mio Kato

Since the second of Jun Toshiba is down 14.7% while TOPIX is up 0.7%.
This underperformance against TOPIX and industry peers suggests that some of the implied acquisition premium has dissipated.
With reasonable potential for some form of bid coming through we consider the news about Japan Industrial Partners growing its consortium.

Link’s On Again-Off Again Scheme Is All but Off

Dye & Durham/DND has proposed a revised Link Administration (LNK AU) offer to address any FCA redress payments. Around A$1.00 per share will hang on the outcome of the FCA investigation.
The Link Board has said it cannot recommend the revised proposal based on value, structure and alternatives available to Link. We agree with the Board’s view.
The scheme is all but dead. The shares are now a back-end play and remain attractive for value investors.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Sep 19

Daily Brief Australia: Link Administration, OZ Minerals Ltd, Imugene Ltd and more

By Smartkarma Daily Briefs | Australia, Daily Briefs

In today’s briefing:

Merger Arb Mondays (19 Sep) – Link Admin, Ramsay, Alliance, Genex, Moya, Singapore Medical, VNET
OZ Minerals Could Get an Improved Offer from BHP
That’s It Then As Link Admin Rejects D&D’s Revised Terms
Imugene (IMU AU) Placement: Extended Runway for Clinical Programs Pipeline at Modest Equity Dilution

Merger Arb Mondays (19 Sep) – Link Admin, Ramsay, Alliance, Genex, Moya, Singapore Medical, VNET

We summarise the latest spreads and newsflow of merger arb situations covered by us across Hong Kong, Australia, New Zealand, Singapore, Indonesia, Malaysia, Thailand and Chinese ADRs.
Highest spreads – Link Administration (LNK AU), Alliance Aviation Services (AQZ AU), 21Vianet Group (VNET US), Ramsay Health Care (RHC AU), Infomedia Ltd (IFM AU), Genex Power Ltd (GNX AU).
Lowest spreads – Nitro Software Ltd (NTO AU), Tyro Payments (TYR AU), Nearmap Ltd (NEA AU), MACA Ltd (MLD AU), Xiamen International Port H (3378 HK), Link Net (LINK IJ).

OZ Minerals Could Get an Improved Offer from BHP

Bloomberg reported that BHP Group Ltd (BHP AU) has been considering raising its bid for OZ Minerals Ltd (OZL AU). OZ is pushing BHP to increase its offer to A$30.
The OZ Board has a strong justification for a higher offer as BHP’s acquisition of OZ would tick the boxes of future-facing commodities and potential operational synergies.
Rio Tinto Ltd (RIO AU) recently increased its bid to minority shareholders of Turquoise Hill Resources (TRQ CN). This increases the probability that BHP will return with a sweetened offer.

That’s It Then As Link Admin Rejects D&D’s Revised Terms

By David Blennerhassett

After 23 months of negotiations, various bids from various parties, culminating in a protracted on-again, off-again, negotiation with Dye & Durham, Link Administration (LNK AU) has called it a day.
D&D arguably did the right thing and tabled a revised proposal to account for any enforcement process after the UK’s FCA raised redress payments. Link has rejected the revised terms.
Link will now pursue an in-specie distribution of a minimum of 80% of Link’s shareholding in PEXA Group (PXA AU).

Imugene (IMU AU) Placement: Extended Runway for Clinical Programs Pipeline at Modest Equity Dilution

By Tina Banerjee

Imugene Ltd (IMU AU) announced A$80 million institutional placement at A$0.20/ share, representing 11.1% discount to last close on September 9, 2022. Shares issued represent just 6.8% of existing shares.
The company will have a pro-forma cash position of ~A$175 million on completion of the Placement, funding the company’s broad clinical pipeline of three platform technologies.
For every two new shares subscribed for under the placement, Imugene intends to issue one free new option. The options issued will provide A$66 million in funding, if fully exercised.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Sep 19

Daily Brief Singapore: Sembcorp Marine and more

By Smartkarma Daily Briefs | Daily Briefs, Singapore

In today’s briefing:

FTSE Straits Times Index (STI): Quiddity Primer

FTSE Straits Times Index (STI): Quiddity Primer

By Janaghan Jeyakumar, CFA

FTSE Straits Times Index (STI) (STI INDEX) consists of the 30 largest companies listed in the Singapore Stock Exchange (SGX).
This is one of the well-known national blue-chip indices in the Asia-Pacific region.
In this insight, we will have a look at the selection criteria and the historical price performance of past Rebalance Events.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Sep 19

Daily Brief South Korea: SK Telecom and more

By Smartkarma Daily Briefs | Daily Briefs, South Korea

In today’s briefing:

3Q Dividend Estimates of Those with SSF for Cash & Carry Arb in Korea

3Q Dividend Estimates of Those with SSF for Cash & Carry Arb in Korea

By Sanghyun Park

Juice for cash & carry arbitrage doesn’t seem like much. Several names in contango, but the basis widening isn’t at a sufficiently arb-tradable level.
Reverse cash & carry isn’t all that attractive either, but it certainly does offer more juice, even with borrow fees. Ssangyong C&E, SKT, Shinhan, and KB deserve our attention.
A bit uncertain is whether the pattern of “LONG Spot until ex-dividend and Conversion to Short” through cash & carry will repeat itself this time.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Sep 19

Daily Brief United States: Russell 2000 Index, ROBLOX Corp and more

By Smartkarma Daily Briefs | Daily Briefs, United States

In today’s briefing:

Watch RTY Trigger for NDX New Lows
Roblox Analyst Day Observations

Watch RTY Trigger for NDX New Lows

By Thomas Schroeder

Call to re cycle shorts at targets on September 12/13 and buy the USD at DXY 108 is paying off. Use an uptick early this week to add to shorts.
NDX remains our top US short but an inflection below RTY 1,775 pivot support will increase downside conviction for a hard NDX bear press to 11,500 and 11,000.
SPX 3,750 pressure test expected, if below will increase odds of a new low. Monitor DXY 111.25/50 for an early warning dollar top.

Roblox Analyst Day Observations

By Aaron Gabin

Roblox Analyst Day featured some interesting new initiatives around advertising and marketplace dynamics.
The company will launch a self serve advertising platform in 2023 that has the potential to be worth an incremental 20% of revenues and margin supportive.
The company is also allowing developers to start introducing scare items, and begin participating in the on-platform resale market.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Sep 19

Daily Brief China: Shanghai United Imaging Healthcare, Times Neighborhood, Onewo Space-Tech, Tencent, Road King Infrastructure and more

By Smartkarma Daily Briefs | China, Daily Briefs

In today’s briefing:

Index Rebalance & ETF Flow Recap: STAR50, PCOMP, SET50, AMFI, ALX
Takeaways from the Times Neighborhood Investment Debacle
Onewo IPO: Valuation Insights
China Internet Weekly (19Sep2022): Tencent, NetEase, Meituan, Trip.com
Morning Views Asia: China Fortune Land, Fosun International, Road King Infrastructure

Index Rebalance & ETF Flow Recap: STAR50, PCOMP, SET50, AMFI, ALX

By Brian Freitas

It was a busy week with a bunch of index rebalances being implemented at the close of trading on Friday.
We list out potential changes to the STAR50 INDEX, Philippines Stock Exchange PSEi Index (PCOMP INDEX) and SET50 INDEX at the upcoming rebalances.
There was a large outflow from the iShares MSCI ACWI ETF (ACWI US) for yet another week.

Takeaways from the Times Neighborhood Investment Debacle

By Sameer Taneja

Times Neighborhood (9928 HK) has been a disastrous call since we first highlighted it. In this insight, we reflect upon the red flags we could have done well to spot.
We cover red flags ranging from the level of precise guidance, pivot in strategy, and the parent’s poor financial health, to the effect on receivables sucking cash from the company.
Everyone makes mistakes (we are human, after all). We would like to share our experience to educate readers to become better investors and sidestep investments in such names.

Onewo IPO: Valuation Insights