In today’s briefing:
- China Evergrande Group – More Casualties
- Crown Resorts: Blackstone Group Raises Offer to AU$13.10 a Share Confirming Our May 20th Guidance
- Citigroup – Many Moving Parts and Confused Mexican Exit
- Money Forward (3934) – Solid, Not Spectacular
China Evergrande Group – More Casualties
- Evergrande Is Breaking Down More Rapidly Than Banks Have Kept Up;
- Minsheng Has Significant Exposure to Evergrande and Other Problem Developers; and
- Minsheng Is Not Insolvent, But It Is Getting There Very Quickly.
Crown Resorts: Blackstone Group Raises Offer to AU$13.10 a Share Confirming Our May 20th Guidance
- Crown’s Board which had rejected two prior Blackstone offers is now seen as embracing its latest bid, but negotiations will be non-exclusive.
- Our contention was that due diligence undertaken by Blackstone would result in a higher bid. They already hold 9.9%.
- Stock has long been dead pooled at AU$11 due to regulatory uncertainties prompted by New South Wales investigative report of alleged irregularities in VIP and money laundering.
Citigroup – Many Moving Parts and Confused Mexican Exit
- Weaker Result Across Almost All Geographic Segments – Led By Negative Jaws;
- Credit Modestly Weaker, Although Reserve Coverage Remains Strong. Watch For Credit Turn; and
- Progress On Asian Consumer Exits, But Sea Change In View On Mexico.
Money Forward (3934) – Solid, Not Spectacular
- Money Forward reported full year results post close on Friday. The stock will react negatively…probably.
- The stock is down 45% from its 52-week high, along with most high growth SaaS stocks
- The fundamentals, earnings and growth remain intact, but valuations are unlikely to recover as excess liquidity drains out of the market. One for patient LT investors
Related tickers: Evergrande (3333.HK), Crown Resorts (CWN.AX), Citigroup Inc (C.N), Money Forward (3994.T)
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