Smartkarma Daily Briefs

• HKBN Ltd (1310 HK), a Hong Kong broadband play, is never short on privatisation rumours. China Mobile (941 HK) is reportedly (again) holding talks with HKBN’s major shareholders. 
• China Mobile is a logical suitor. I highly doubt a non-PRC (government-affiliated) corporation would be permitted to take HKBN private.
• Previous takeover rumours over the years came to nought. It may be different this time. HKBN was suspended this morning pursuant to the Takeovers Code.

• With the review period nearly complete, there could be one change for the S&P/ASX 50 Index and one change for the S&P/ASX 200 (AS51 INDEX) in December.
• Both deletes are also deletions from a global index next week and there could be short-term buying/covering opportunities on a drop in the stock price.
• There has been a buildup of cumulative excess volume in all stocks over the last few months. There has been no increase in positioning in CAR Group (CAR AU) recently.

• Post market close on Friday, Hang Seng Indexes will announce the changes for the Hang Seng Index (HSI INDEX) that will be implemented at the close on 6 December.
• With no increase in the number of index constituents this calendar year, there could be inclusions in December. The process of getting to 100 index constituents could drag into 2026.
• Short interest is especially large in Sinotruk, Giant Biogene, Kuaishou Technology, ASMPT and JD Logistics and inclusion could set off some short covering.

• Amid Samsung Electronics announcing a huge buyback of 10 trillion won, one of the issues that has resurfaced is the potential sale of Samsung Electronics by Samsung Life Insurance.
• The total amount of Samsung Electronics that could be sold by Samsung Life Insurance and Samsung F&M Insurance is 25.6 trillion won (at current prices). 
• We remain Positive on Samsung Electronics. The 10 trillion won buyback program is a positive sign on the company’s willingness to provide higher shareholder returns.

• It has been a relatively quiet week.
• Bitcoin has outperformed much of the market, resulting in an increase in its dominance, as highlighted in Thursday’s Crypto Moves #52.
• This was most likely driven by the intense buying pressure from MicroStrategy over the past week.

• Nagarro SE (NA9 GR) is in discussions for a potential delisting and takeover, with private equity firm Warburg Pincus reportedly considering a buyout.
• Strong Financial Growth: Q3 2024 revenue rose by 3.7% to €242.9M, with a 5.6% constant currency growth, adjusted EBITDA improving to €34.6M (14.3% of revenue).
• Nagarro trades at a P/E ratio below peers, suggesting undervaluation despite financial resilience, strong liquid assets, and 14% stock price growth over the last eight trading days.

• Spotify Technology S.A. delivered a mixed set of results for the third quarter of 2024, showcasing both achievements and continued challenges as the company navigates through its business strategy.
• On one hand, it marked a milestone by delivering strong growth metrics in both subscribers (net addition of 6 million to reach a total of 252 million) and monthly active users (MAU, rising by 14 million to 640 million).
• These metrics exceeded Spotify’s guidance and reflect its dual focus on product innovation and marketing efficiency.

• NVIDIA, the undisputed leader in AI-driven GPUs, is currently navigating turbulent waters with its latest Blackwell architecture chips.
• While the company has been riding high on record-breaking revenues and a surging demand for AI compute power, reports of overheating issues in Blackwell chips have cast a shadow over its otherwise stellar growth trajectory.
• According to recent disclosures, these state-of-the-art GPUs face severe thermal management challenges when configured in server racks holding up to 72 units.

• Soitec is a leading supplier of specialty engineered wafers for semiconductor manufacturing, particularly in smartphone RF applications.
• The company experienced a downturn in the smartphone market and covid-related inventory corrections but is poised for growth as chip complexity and demand for their products increase.
• Soitec is expanding their market with silicon carbide (SiC) wafers for EVs, which could significantly boost earnings by 2025/2026, with a price target of €175 over 1.75 years and a 70% upside potential for investors.

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.

The delay of a major contract inevitably has an impact on short-term profitability. Solid State has a strong balance sheet and a growth strategy to develop into a higher value-added electronics components and systems business, as witnessed by the two recent small acquisitions. Post the current hiatus we expect this to drive growth and value creation.