In today’s briefing:
- Emeco (EHL AU): Offer Rumours Abound
- Tips for Using FnGuide to Run Top-Down Screens in Korea’s Policy-Driven Market
- Shengjing Bank (2066 HK): 21st Oct Vote On Bailout
- JD Walks from Argos – But Sainsbury’s Valuation Case Strengthens
- Liquid Universe of European Ordinary and Preferred Shares: September’25 Report
Emeco (EHL AU): Offer Rumours Abound
- Reportedly, heavy earthmoving equipment play Emeco Holdings (EHL AU) is in the crosshairs.
- Local media are indicating that Emeco has been testing the water on possible domestic suitors, and this has spurred interest from overseas.
- The share price is up 27% YTD and 58% over the past year, and currently trading around a four-year high.
Tips for Using FnGuide to Run Top-Down Screens in Korea’s Policy-Driven Market
- KRX provides broad official market data, but no consensus estimates. FnGuide aggregates broker reports, standardizes them, and delivers actionable consensus numbers for practical trading use.
- FnGuide’s consensus data is solid and well-structured for screening, though coverage is limited to ~300–400 stocks, which still aligns with the practical trading universe.
- FnGuide’s paid services require Korean residency or a corporate workaround, making access tough for overseas traders; realistically, we can rely on their free sites for financials, consensus, and basic screening.
Shengjing Bank (2066 HK): 21st Oct Vote On Bailout
- On the 26th August, rural commercial bank Shengjing Bank Co Ltd H (2066 HK) announced a HK$1.32/Share Offer, a pretty tragic 86.49% discount to NAV.
- On the 12th September, the Offeror bumped terms to HK$1.60 (best & final). That’s a 40.5% premium to undisturbed, but still a 83.96% discount to NAV.
- The Composite Document’s now out, with a H-share class meeting on the 21st October. The IFA (Gram Capital) says “fair & reasonable”. To be expected.
JD Walks from Argos – But Sainsbury’s Valuation Case Strengthens
- Argos’s strategic value remains underappreciated, despite JD.com walking away. A sale or internal turnaround could unlock up to £2 billion in value based on realistic, post-tax synergy assumptions.
- Sainsbury acquired Argos for £1.4 billion in 2016, aiming for multichannel scale. While digital integration succeeded, long-term profit delivery has lagged — offering a compelling restructuring opportunity today.
- My event-driven SOTP model shows 10–25% share price upside, with optionality from renewed M&A interest, internal margin improvement, or capital allocation catalysts including divestment or spin-off.
Liquid Universe of European Ordinary and Preferred Shares: September’25 Report
- Across Europe’s dual-class names, spreads mostly tightened: Atlas Copco B-to-A 10.8%, BMW prefs 7.2%, Volvo at par; notable wideners include Carlsberg B at 19.5% discount and SSAB B at 2.6%.
- Drivers include index inclusion, liquidity and control: Volkswagen prefs gain from flows and €0.06 dividend uplift; Telecom Italia savings widen on arrears prospects; Handelsbanken and Fuchs maintain puzzling elevated premiums.
- Actionables: long MFE A versus B as ProSieben settlement lifts liquidity; Grifols B versus A on deleveraging; Henkel ords versus prefs; Volkswagen prefs versus ords; monitor Ericsson, Investor, Industrivärden parity.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
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
