In today’s briefing:
- Tencent (700 HK) – Surging Price, Strikes, and Volatility. A Novel Look with an Animated Chart
- Pentamaster International (1665 HK): A Deal Break Will Be the Right Result for a Light Offer
- FXI Rebalance Preview: Two Sets of Changes as ZTE Breaks Out, China Coal Dumps
- China A50 ETFs Rebalance Preview: China Rally Takes Cambricon Up, Up & Away
- Taiwan Dual-Listings Monitor: TSMC Spread Falls From Elevated Level; UMC & ASE Discount Opportunity
- Tech Supply Chain Tracker (25-Feb-2025): Global EV sales: 2024 review, 2025 forecast
- Informatica: Will Its AI & Digital Transformation Initiatives Offer a Competitive Edge?
- Friday Take Away: 14 February 2025
- Soluna Holdings, Inc – Progress on Project Kati and Bit Digital Partnership…
- SVRE: Another ADS ratio adjustment and financing as the company seeks stability in 2025.
Tencent (700 HK) – Surging Price, Strikes, and Volatility. A Novel Look with an Animated Chart
- Tencent (700 HK) has surged 33.5% over the past 30 days, with its spot price outpacing the slow adjustment of call option strikes, shifting most contracts from out-of-the-money to in-the-money.
- The current concentration of in-the-money calls hints at active trading and potential strike adjustments ahead, amplified by upcoming events like the 19 March earnings.
- This analysis features a novel animated chart of option open interest distribution offering a dynamic visual of market behavior.
Pentamaster International (1665 HK): A Deal Break Will Be the Right Result for a Light Offer
- The vote on Pentamaster Corp (PENT MK) and AchiCapital’s HK$1.00 for Pentamaster International (1665 HK) is on 28 February. Over the last two days, the gross spread has increased to 8.7%.
- There are valid arguments for the vote to pass or fail. Despite the IFA’s assertions that the offer is fair and reasonable, it is not and will leave minorities short-changed.
- While there is no visible opposition, the share price indicates that an activist could have secured a blocking stake (3.34% of shares, which does not require HKEx disclosure).
FXI Rebalance Preview: Two Sets of Changes as ZTE Breaks Out, China Coal Dumps
- With the review cutoff done, there could be two changes for the iShares China Large-Cap (FXI) (FXI US) in March.
- Guotai Junan Securities (2611 HK) and ZTE Corp H (763 HK) are expected to replace China Tourism Group Duty Free (1880 HK) and China Coal Energy Co H (1898 HK).
- ZTE Corp H (763 HK) has broken out to new highs (possibly on short covering) while China Coal Energy Co H (1898 HK) continues to sell off.
China A50 ETFs Rebalance Preview: China Rally Takes Cambricon Up, Up & Away
- With the review cutoff done, there could be three changes for the iShares A50 China (2823 HK)/ CSOP China A50 (HKD) (2822 HK) ETFs in March.
- Cambricon Technologies, Guotai Junan Securities and China United Network could replace Inner Mongolia Yili Industrial Group, CGN Power and Luzhou Laojiao in the ETFs.
- Guotai Junan Securities (2611 HK) is expected to be added to the iShares China Large-Cap (FXI) (FXI US) in March, so there should be inflows for the A-shares and H-shares.
Taiwan Dual-Listings Monitor: TSMC Spread Falls From Elevated Level; UMC & ASE Discount Opportunity
- TSMC: +17.2% Premium; Wait for Lower Levels Before Going Long
- UMC: -1.9% Discount; Can Consider Going Long the Spread at Current Level
- ASE: -0.6% Discount; Discount is Opportunity to Long the Spread
Tech Supply Chain Tracker (25-Feb-2025): Global EV sales: 2024 review, 2025 forecast
- Global EV sales in 2024 were strong, with forecasts for 2025 looking promising as well, showcasing the growth of the electric vehicle market.
- Asus and Gigabyte secure large AI server orders from Nvidia, highlighting efforts to boost US manufacturing and strengthen partnerships in the tech industry.
- iPhone 16e price hints at a move away from the budget market, indicating a potential shift in Apple’s pricing strategy for future phone releases.
Informatica: Will Its AI & Digital Transformation Initiatives Offer a Competitive Edge?
- Informatica Inc. reported its financial results for the fourth quarter of fiscal year 2024, reflecting a period of significant transition and mixed performance.
- The company is deeply engaged in its strategic shift towards a cloud-only, consumption-driven business model, which presents both opportunities and challenges.
- On the positive side, Informatica has achieved notable progress with its cloud subscription business.
Friday Take Away: 14 February 2025
- This Australian/UK Company designs and manufactures proprietary thin, flat supercapacitors and energy management systems.
- These have very high-power density and high energy storage capacity in a space-efficient prismatic package.
- Superconductors are used in portable and small-scale electronic devices, as well as in larger applications such as automotive and renewable energy.
Soluna Holdings, Inc – Progress on Project Kati and Bit Digital Partnership…
- Soluna recently announced two significant deals to grow its business.
- The first deal is an expansion of its partnership with Bit Digital (BTBT), while the second deal is a successful exit of Project Kati from the Electric Reliability Council of Texas (ERCOT) planning phase.
- On February 18, Soluna announced that it had successfully exited the ERCOT planning phase for its Project Kati, which is expected to unlock up to 166 MW of new Bitcoin hosting and AI JV opportunities.
SVRE: Another ADS ratio adjustment and financing as the company seeks stability in 2025.
- SaverOne continues to expand internationally and has had moderate success launching pilots in the EU market.
- A key for the company in 2025 will be converting many pilots into full commercial deployments and substantially increasing its installed base.
- We have a better estimate of the total outstanding shares (roughly 675 million) as a result of the company’s latest registration statement.
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