In today’s briefing:
- Shinko Shoji (8141) Buyback – Possibly An Interesting Development
- SenseTime Lock-Up -Investment Blacklist Will Further Pressurize the Upcoming US$18bn Lock-Up Release
- Grab (GRAB US) – Mapping Out a More Prudent Future
- The Trade Desk ($TTD)
Shinko Shoji (8141) Buyback – Possibly An Interesting Development
- Smallcap semiconductor/component/design/assembly service trading house Shinko Shoji (8141 JP) has been buying back stock. It cancelled 20% of shares out last year. Today it buys back nearly 7%.
- The question is, who sells. What one might want to do may depend on who sells. And we will know that in 1-5 days.
- The stock itself trades at less than net current assets. The entire market cap and indeed equity is its funding of inventory and net receivables. It’s cheap.
SenseTime Lock-Up -Investment Blacklist Will Further Pressurize the Upcoming US$18bn Lock-Up Release
- SenseTime Group (STG) raised US$741m in its Hong Kong IPO in Dec 21. The IPO barely made it through and was priced at the bottom of its IPO price range.
- STG is a leading AI software company. STG was the largest AI software company in Asia in terms of 2020 revenue, as per Frost & Sullivan (F&S).
- In this note, we will talk about the lock-up dynamics and updates since our last note.
Grab (GRAB US) – Mapping Out a More Prudent Future
- Grab continues to innovate and adapt to more challenging times, with a needle focus on moving toward profitability with ongoing efforts to reduce incentives and rationalise non-core businesses.
- The launch of GrabMaps is interesting in that it has the potential to generate new revenue streams, create substantial cost savings, and enable targeted advertising adding to the enterprise segment.
- Grab (GRAB US) has cash liquidity of US$8.2bn, which makes it look cheap relative to its market cap of only US$8.9bn and it is trading on 2.0x FY2023E EV/Sales.
The Trade Desk ($TTD)
- Consumerism has taken the Western World hostage over the course of the last few hundred years.
- Defined loosely, this term encompasses a general social and economic order that encourages the acquisition of both goods and services in ever-increasing amounts.
- Capitalism, at its very core, is fundamentally reliant on these behaviour patterns, with the constant and widespread itch for more spurring endless arrays of both corporate and nationwide growth and enrichment.
Before it’s here, it’s on Smartkarma
