In today’s briefing:
- Youngpoong Paper Mfg: Concerns About CFD Related Selling – Another Margin Call?
- Lithium Power (LPI AU): Codelco’s Binding Offer at A$0.57
- SDRL: The Calm Ahead of News Flow
Youngpoong Paper Mfg: Concerns About CFD Related Selling – Another Margin Call?
- Youngpoong Paper Mfg’s shares declined sharply by 30% to 33,900 won today, trading only 190k shares (3% of ADTV).
- There is high probability that this sell-off could be related to CFD related margin call.
- Daiyang Metal, the largest shareholder of Youngpoong Paper Mfg, also dropped limit down today. The Korea Exchange has temporarily suspended trading of both Youngpoong Paper and Daiyang Metal.
Lithium Power (LPI AU): Codelco’s Binding Offer at A$0.57
- Lithium Power International (LPI AU) has entered a scheme implementation deed with Corporacion Nacional del Cobre de Chile (Codelco) at A$0.57 per share, a 119.2% premium to the undisturbed price.
- Shareholders representing 32.47% of outstanding shares will vote in favour of the scheme. Forums suggest that retail shareholders are broadly resigned to accepting the offer.
- The offer is conditional on FIRB approval. The scheme meeting will be held on 23 January 2024. At the last close, the gross spread was 7.5%.
SDRL: The Calm Ahead of News Flow
- There has been little change in day rates since Seadrill (SDRL) reported second quarter results with the Company having two vessels with contracts expiring next month
- The only news flow since SDRL reported second quarter results has been about the Company regularly buying back stock
- The two vessels with contracts expiring are currently in different geographies
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