In today’s briefing:
- A Shift in TIGER Top 10 ETF December Rebalancing: KB Financial Newly In But Not Ecopro Co
- Youngpoong Paper Mfg: Concerns About CFD Related Selling – Another Margin Call?
- Small Scale Share Swap Between DL E&C and DL Construction + Delisting
- Douzone Bizon: Cooperating with Amazon Web Services to Enter the Global SaaS Market
- EQD | KOSPI 200 Frail WEEKLY Rally Is Ending
A Shift in TIGER Top 10 ETF December Rebalancing: KB Financial Newly In But Not Ecopro Co
- While Ecopro Co’s stock has undergone significant corrections since August, KB Financial has sustained an upward trajectory, leading to a significant reversal in float-adjusted market cap.
- The current disparity between the two exceeds ₩2T, making it challenging to anticipate another reversal until the screening period.
- Ecopro Co and LG Energy Solution also warrant attention due to the narrow gap in their float-adjusted market capitalization. We should monitor any changes in their market capitalization moving forward.
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.
Small Scale Share Swap Between DL E&C and DL Construction + Delisting
- On 18 October, DL E&C announced that it will conduct a small scale share swap with DL Construction to make it into a 100% wholly owned subsidiary.
- We believe this merger share swap will have a positive impact on both DL E&C (375500 KS) and DL Construction (001880 KS) shares.
- To prevent shares dilution, DL E&C plans to cancel the same number of treasury shares of common stock as the number of newly issued shares of DL E&C common stock.
Douzone Bizon: Cooperating with Amazon Web Services to Enter the Global SaaS Market
- On 16 October, Douzone Bizon (012510 KS) announced that it is entering the global software-as-a service (SaaS) market in cooperation with Amazon Web Services (AWS).
- The agreement stipulates that Douzone Bizon will develop global SaaS through AWS support and enter overseas markets.
- We believe shares of Douzone Bizon have been oversold. Valuations have become more attractive and its cooperation with AWS is also likely to improve the company’s overseas sales and profits.
EQD | KOSPI 200 Frail WEEKLY Rally Is Ending
- The KOSPI 200 Index is currently rising for the 3rd week in a row and approaching the Q2 WEEKLY resistance level, but it’s a very weak rally.
- Between 329 and 331 there id a good area to go SHORT, the index could fall for 2-3 weeks from here, into early November.
- A negative close in October would be =3 months down in a row (CC=-3), November in that case would have good odds for a rebound and close up.
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