Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Nearly 30 years of experience in the Korean/Asian equity research. Major sectors coverage include the following:
- Technology 
- Consumer 
- Special Situations/Deep Value Plays
- Tender Offers/M&As
- Holdcos/Stubs
- Asian Unicorns/Private Companies

Korea/Asia, Events, IPOs

Cafe24 Vs. Shopify - An Excessive Divergence in Prices?

Equity Bottom-Up

<p><a href="https://www.smartkarma.com/entities/25912" target="_blank" data-smartkarma-citation="entities:25912:1">Cafe24 Corp (042000 KS)</a> shares have been blistering ahead since the IPO with current price of 142,000 won (market cap of 1.3 trillion won). Its share price is up 149% since the IPO price of 57,000 won. We believe that the share price has overshot significantly above its fair value; and as such we believe that now the risks of owning Cafe24 are outweighing the potential rewards of higher capital appreciation.</p><p>In fact, at current price of 142,000 won, this is 19% higher than the high end of our…</p>

Cafe24 Corp (042000 KS) shares have been blistering ahead since the IPO with current price of 142,000 won (market cap of 1.3 trillion won). Its share price is up 149% since the IPO price of 57,000 won. We believe that the share price has overshot significantly above its fair value; and as such we believe that now the risks of owning Cafe24 are outweighing the potential rewards of higher capital appreciation.In fact, at current price of 142,000 won, this is 19% higher than the high end of our…

Cafe24 Update: Risks Now Outweigh Rewards