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Most Read: Yamada Denki, Mindtree Ltd, SenseTime Group, CJ CGV Co Ltd, Jindal Steel & Power and more

In today’s briefing:

  • Yamada Denki – GINORMOUS Buyback To Dramatically Boost EPS and ROE
  • Mindtree & L&T Infotech’s US$18bn Merger: Details and Index Implications
  • Index Rebalance & ETF Flow Recap: KOSPI200, KQ150, CSI300, STAR50, SET50, China A50, HSCI, SenseTime
  • KOSPI 200 Rebalancing: Trade Short Covering Event for Deletions
  • India: Preview of Stock Reclassification for Active Funds

Yamada Denki – GINORMOUS Buyback To Dramatically Boost EPS and ROE

By Travis Lundy

  • Yamada Denki (9831 JP) reported earnings (Revs -7.6% (slight beat), OP -28.6% (slight miss), NP -2.4% (slight miss)), and slightly upbeat forecasts to Mar-2023 (Revs +4.6%, OP +12.5%, NP +2.9%) 
  • They also announced an unchanged dividend at ¥18/share, and a VERY BIG BUYBACK. This is one of the largest, most aggressive, on-market buyback programs I have ever seen.
  • Previous buybacks have been duds. Yamada Denki is not playing around this time. This time it will be a buy.

Mindtree & L&T Infotech’s US$18bn Merger: Details and Index Implications

By Brian Freitas


Index Rebalance & ETF Flow Recap: KOSPI200, KQ150, CSI300, STAR50, SET50, China A50, HSCI, SenseTime

By Brian Freitas


KOSPI 200 Rebalancing: Trade Short Covering Event for Deletions

By Sanghyun Park

  • Short-Selling is not possible after being deleted from the KOSPI 200. So, active short-covering for deletions is witnessed before and after the rebalancing implementation.
  • CJ CGV (079160 KS) stands out the most at this point. Its short interest is 4.10% of SO, and the short interest has increased the most over the past month.
  • The short-covering/price movement started to be observed from the end of the prior month. So, I’d consider building positions from the third week of this month.

India: Preview of Stock Reclassification for Active Funds

By Brian Freitas

  • Two-Thirds of the way through the review period, we see 7 stocks migrating from MidCap to LargeCap, 8 stocks from LargeCap to MidCap, and 1 new listing added to LargeCap.
  • Post listing, Life Insurance Corp of India (LIC) (1248Z IN) should be added to the LargeCap segment while Delhivery (1058656D IN) should be added to the MidCap segment.
  • On average, stocks expected to migrate from Mid Cap to Large Cap have outperformed. Stocks expected to migrate from the Large Cap to Mid Cap segment have performed the worst.

Before it’s here, it’s on Smartkarma