Smartkarma Daily Briefs

• Yesterday, Daihatsu Diesel Mfg (6023 JP) announced that it would buy back shares in a Tender Offer and that its controlling “parent” would also sell shares to a private company.
• The accretion is significant, and the shareholder structure changes significantly. It is not quite an Exedy-like situation though. The register changes but it doesn’t clear. 
• But the backdrop is considerably different than the MTMP, and that means this smallcap is worth a closer look.

• Short selling returns March 31, after 85% of the KOSPI 200’s rebalancing. Stocks set for removal will be prime short targets.
• Stocks removed have solid liquidity, tight passive impact gaps between them, and with short selling restarting March 31, we could see intensified volume in the short basket.
• With rebalance ahead, price action may start early. Market exposure means aggressive moves could happen before the end of March, so consider building futures positions before short selling resumes.

• Margin recovery drives stock higher – Operating profit beat estimates, margins rebounded to 13.6%, and forex gains provided a boost despite weak sales.
• European rebound offers upside – Makita, with 20% market share, is set to benefit from a forecasted 2025 construction sector recovery after two years of contraction.
• Valuation remains attractive – With improving ROIC, inventory normalisation, and steady growth prospects, a DCF model suggests an 18% upside for the stock.

• Aker Carbon Capture sold 80% of their business to SLB for 4.5Bn NOK in cash with potential performance-based considerations.
• Aker is now left as a shell company with negative EV and a 20% stake in the combined carbon capture business.
• Aker’s modular approach to carbon capture technologies has helped them become a leader in the industry with growing revenue and a strong backlog of projects.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Elis is a top multi-service provider in Europe, offering textile, hygiene, and facility service solutions to commercial clients
• The company’s revenue growth outpaces GDP, reflecting the trend towards outsourcing essential services
• Elis has maintained consistent performance and achieved growth in free cash flow despite challenges like the COVID pandemic and financial crises, showing significant growth in revenue, EBITDA, and EPS since 2018, with an undervalued share price.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Yesterday, Daihatsu Diesel Mfg (6023 JP) announced that it would buy back shares in a Tender Offer and that its controlling “parent” would also sell shares to a private company.
• The accretion is significant, and the shareholder structure changes significantly. It is not quite an Exedy-like situation though. The register changes but it doesn’t clear. 
• But the backdrop is considerably different than the MTMP, and that means this smallcap is worth a closer look.

• Short selling returns March 31, after 85% of the KOSPI 200’s rebalancing. Stocks set for removal will be prime short targets.
• Stocks removed have solid liquidity, tight passive impact gaps between them, and with short selling restarting March 31, we could see intensified volume in the short basket.
• With rebalance ahead, price action may start early. Market exposure means aggressive moves could happen before the end of March, so consider building futures positions before short selling resumes.

• Margin recovery drives stock higher – Operating profit beat estimates, margins rebounded to 13.6%, and forex gains provided a boost despite weak sales.
• European rebound offers upside – Makita, with 20% market share, is set to benefit from a forecasted 2025 construction sector recovery after two years of contraction.
• Valuation remains attractive – With improving ROIC, inventory normalisation, and steady growth prospects, a DCF model suggests an 18% upside for the stock.

• Aker Carbon Capture sold 80% of their business to SLB for 4.5Bn NOK in cash with potential performance-based considerations.
• Aker is now left as a shell company with negative EV and a 20% stake in the combined carbon capture business.
• Aker’s modular approach to carbon capture technologies has helped them become a leader in the industry with growing revenue and a strong backlog of projects.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Elis is a top multi-service provider in Europe, offering textile, hygiene, and facility service solutions to commercial clients
• The company’s revenue growth outpaces GDP, reflecting the trend towards outsourcing essential services
• Elis has maintained consistent performance and achieved growth in free cash flow despite challenges like the COVID pandemic and financial crises, showing significant growth in revenue, EBITDA, and EPS since 2018, with an undervalued share price.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.