In today’s briefing:
- Weekly Deals Digest (24 Aug) – Mayne Pharma, PointsBet, Lynch, Dongfeng Motor, ENN Energy, Shibaura
- Relative Value Opportunities in Asia-Pac, Pair Trade Roundup (25 Aug)
- Earnings as Catalyst for Scentre Group (SCG AU) Vs. Stockland (SGP AU) As Price Ratio Widens
- Woodside (WDS AU) Vs. Yancoal (YAL AU): Spread Deviation Sparks Trading Signal
- Iron Ore: Reiterate Fall to 95 USD/Ton In the Near Term
- Avecho Biotechnology Ltd – Waking the sleeping giant
Weekly Deals Digest (24 Aug) – Mayne Pharma, PointsBet, Lynch, Dongfeng Motor, ENN Energy, Shibaura
- A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
- ECM developments: Aux Electric Co Ltd (0917839D HK) is seeking to raise US$600 million, Tata Capital Limited (TATACAP IN) is seeking to raise US$2.0 billion.
- Event-Driven developments: Mayne Pharma (MYX AU), PointsBet Holdings (PBH AU), Lynch Group Holdings (LGL AU), Dongfeng Motor (489 HK), ENN Energy (2688 HK), Shibaura Electronics (6957 JP).
Relative Value Opportunities in Asia-Pac, Pair Trade Roundup (25 Aug)
- Context: This Insight follows up on previously highlighted relative value opportunities, using a statistical methodology based on mean-reversion to identify opportunities in paired securities.
- Highlight: Currently eight pair trade opportunities across three markets and four sectors persist.
- Why read: Statistical analysis offers a unique perspective on relative value. Gain insights into actionable statistical pair trade opportunities and monitor performance of previously highlighted pairs.
Earnings as Catalyst for Scentre Group (SCG AU) Vs. Stockland (SGP AU) As Price Ratio Widens
- Context: The Scentre Group (SCG AU) vs. Stockland (SGP AU) price-ratio has deviated more than three standard deviations from its one-year average, presenting a potential relative value opportunity.
- Highlights:Stockland (SGP AU) rallied 7.0% on 20 August after reporting results, creating a gap between the two stocks. Scentre Group (SCG AU) is set to report on 26 August,
- Why Read: Essential for quantitative traders seeking mean-reversion opportunities, with detailed execution framework, risk management protocols, and historical simulation showing the statistical basis for this relative value play.
Woodside (WDS AU) Vs. Yancoal (YAL AU): Spread Deviation Sparks Trading Signal
- Context: The Woodside (WDS AU) vs. Yancoal (YAL AU) price-ratio has deviated more than two standard deviations from its one-year average, presenting a potential relative value opportunity.
- Highlights: With Yancoal experiencing a sharp price drop after reporting earnings last week, the historically well-aligned price ratio has spiked, generating a trading signal.
- Why Read: Essential for quantitative traders seeking mean-reversion opportunities, with detailed execution framework, risk management protocols, and historical simulation showing the statistical basis for this relative value play.
Iron Ore: Reiterate Fall to 95 USD/Ton In the Near Term
- This is a follow-up on our insight from 2 weeks ago, Iron Ore: Pullback From 102 USD/Ton to 95 USD/Ton, where we estimated a pullback on the iron ore price.
- With mill margins retreating into negative territory and TSF numbers (although healthy) coming far below street expectations, the stage is set for iron ore to retreat to 95 USD/ton.
- Despite iron ore prices retreating to the 95 USD/ton level, we like Fenix Resources (FEX AU)(Read: Fenix Resources Tripling of Production Achieved, 1.2x Price/OCF ).
Avecho Biotechnology Ltd – Waking the sleeping giant
- Avecho Biotechnology Limited (ASX:AVE) is an Australian biotech company focused on enhancing drug absorption through its proprietary TPM (Tocopheryl Phosphate Mixture).
- AVE is currently focusing its efforts on a CBD (cannabidiol) soft-gel capsule for treating insomnia.
- AVE is currently undergoing a pivotal Phase III clinical trial of the drug with the potential to be the first over-the-counter (OTC) CBD sleep aid approved by Australia’s Therapeutic Goods Administration (TGA), meaning the drug could be purchased directly and easily at a pharmacy without any prescription required from a doctor.
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