Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

I investigate special situations, pairs, and index rebalancing trades in Korea.

Korea / Special Sits, Pairs, Index Rebalancing

Doosan Heavy/Infracore Corporate Actions Walkthrough & KOSPI 200 Index Treatments

How Would We Capitalize on a Massive Discount Present on Doosan Infracore Business Unit?

Doosan Infracore Rebalancing Trading on June 28 & Outright Short-Selling Opportunity

Doosan Heavy Industries Rights Offer: Terms & Situation

Doosan Stub: An Entry Point in This Extreme Diversion

Doosan Heavy Offering: Subs Rights Trading at a 3+% Spread, Not Adjusting Oversubscription

Gravity Works As WeWork Doesn't; Now Plan B

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

Equity Bottom-Up

Doosan Heavy Industries is right at the center of a potential short-selling attack. It tops the loan balance/float shares ratio among the KOSPI 200 constituents having the short-selling eligibility. A whopping 33.31% of its free-float shares are currently sitting on the loan balance book, representing 6.18 times the 30-day average daily trade volume.<table class="table table-striped">
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<td style="width: 236.364px;" data-sheets-value='{"1":2,"2":"Name"}'>Top 10 loan balance/float shares among KOSPI 200 constituents</td>
<td style="text-align: right; width: 47.2727px;" data-sheets-value='{"1":2,"2":"Ticker"}'>Ticker</td>
<td style="text-align: right; width: 115.455px;" data-sheets-value='{"1":2,"2":"Loan balance/float shares"}'>Loan balance/float shares</td>
<td style="text-align: right; width: 124.545px;" data-sheets-value='{"1":2,"2":"Loan balance/ADTV"}'>Loan balance/ADTV</td>
<td style="text-align: right; width: 116.364px;" data-sheets-value='{"1":2,"2":"Short interest/float shares"}'>Short interest/float shares</td>
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<td style="width: 236.364px;" data-sheets-value='{"1":2,"2":"Doosan Heavy Industries Constrctn Co Ltd"}'>Doosan Heavy Industries Constrctn Co Ltd</td>
<td style="text-align: right; width: 47.2727px;" data-sheets-value='{"1":2,"2":"034020"}'>034020</td>
<td style="text-align: right; width: 115.455px;" data-sheets-value='{"1":3,"3":0.33313115497862084}' data-sheets-numberformat='[null,3,"0.00%",1]'>33.31%</td>
<td style="text-align: right; width: 124.545px;" data-sheets-value='{"1":3,"3":6.1772001583452525}' data-sheets-numberformat='[null,2,"#,##0.00",1]'>6.18x</td>
<td style="text-align: right; width: 116.364px;" data-sheets-value='{"1":3,"3":0.06259086104962007}' data-sheets-numberformat='[null,3,"0.00%",1]'>6.26%</td>
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<td style="width: 236.364px;" data-sheets-value='{"1":2,"2":"CJ CGV Co Ltd"}'>CJ CGV Co Ltd</td>
<td style="text-align: right; width: 47.2727px;" data-sheets-value='{"1":2,"2":"079160"}'>079160</td>
<td style="text-align: right; width: 115.455px;" data-sheets-value='{"1":3,"3":0.2402089129940976}' data-sheets-numberformat='[null,3,"0.00%",1]'>24.02%</td>
<td style="text-align: right; width: 124.545px;" data-sheets-value='{"1":3,"3":7.207901449599426}' data-sheets-numberformat='[null,2,"#,##0.00",1]'>7.21x</td>
<td style="text-align: right; width: 116.364px;" data-sheets-value='{"1":3,"3":0.024956215628078603}' data-sheets-numberformat='[null,3,"0.00%",1]'>2.50%</td>
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<td style="width: 236.364px;" data-sheets-value='{"1":2,"2":"Doosan Infracore Co Ltd"}'>Doosan Infracore Co Ltd</td>
<td style="text-align: right; width: 47.2727px;" data-sheets-value='{"1":2,"2":"042670"}'>042670</td>
<td style="text-align: right; width: 115.455px;" data-sheets-value='{"1":3,"3":0.21710053863774298}' data-sheets-numberformat='[null,3,"0.00%",1]'>21.71%</td>
<td style="text-align: right; width: 124.545px;" data-sheets-value='{"1":3,"3":5.222225987607389}' data-sheets-numberformat='[null,2,"#,##0.00",1]'>5.22x</td>
<td style="text-align: right; width: 116.364px;" data-sheets-value='{"1":3,"3":0.05900084045410738}' data-sheets-numberformat='[null,3,"0.00%",1]'>5.90%</td>
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<td style="width: 236.364px;" data-sheets-value='{"1":2,"2":"Lotte Tour Development Co., Ltd."}'>Lotte Tour Development Co., Ltd.</td>
<td style="text-align: right; width: 47.2727px;" data-sheets-value='{"1":2,"2":"032350"}'>032350</td>
<td style="text-align: right; width: 115.455px;" data-sheets-value='{"1":3,"3":0.2087869666622583}' data-sheets-numberformat='[null,3,"0.00%",1]'>20.88%</td>
<td style="text-align: right; width: 124.545px;" data-sheets-value='{"1":3,"3":8.600321553335345}' data-sheets-numberformat='[null,2,"#,##0.00",1]'>8.60x</td>
<td style="text-align: right; width: 116.364px;" data-sheets-value='{"1":3,"3":0.1502166979579341}' data-sheets-numberformat='[null,3,"0.00%",1]'>15.02%</td>
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<td style="width: 236.364px;" data-sheets-value='{"1":2,"2":"LG Display Co Ltd"}'>LG Display Co Ltd</td>
<td style="text-align: right; width: 47.2727px;" data-sheets-value='{"1":2,"2":"034220"}'>034220</td>
<td style="text-align: right; width: 115.455px;" data-sheets-value='{"1":3,"3":0.20587227486735404}' data-sheets-numberformat='[null,3,"0.00%",1]'>20.59%</td>
<td style="text-align: right; width: 124.545px;" data-sheets-value='{"1":3,"3":10.565776191720973}' data-sheets-numberformat='[null,2,"#,##0.00",1]'>10.57x</td>
<td style="text-align: right; width: 116.364px;" data-sheets-value='{"1":3,"3":0.054404371553615063}' data-sheets-numberformat='[null,3,"0.00%",1]'>5.44%</td>
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<td style="width: 236.364px;" data-sheets-value='{"1":2,"2":"GS Retail Co Ltd"}'>GS Retail Co Ltd</td>
<td style="text-align: right; width: 47.2727px;" data-sheets-value='{"1":2,"2":"007070"}'>007070</td>
<td style="text-align: right; width: 115.455px;" data-sheets-value='{"1":3,"3":0.19100824155953727}' data-sheets-numberformat='[null,3,"0.00%",1]'>19.10%</td>
<td style="text-align: right; width: 124.545px;" data-sheets-value='{"1":3,"3":9.078724740347708}' data-sheets-numberformat='[null,2,"#,##0.00",1]'>9.08x</td>
<td style="text-align: right; width: 116.364px;" data-sheets-value='{"1":3,"3":0.024814744452913234}' data-sheets-numberformat='[null,3,"0.00%",1]'>2.48%</td>
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<td style="width: 236.364px;" data-sheets-value='{"1":2,"2":"Doosan Fuel Cell Co Ltd"}'>Doosan Fuel Cell Co Ltd</td>
<td style="text-align: right; width: 47.2727px;" data-sheets-value='{"1":3,"3":336260}'>336260</td>
<td style="text-align: right; width: 115.455px;" data-sheets-value='{"1":3,"3":0.16218958169718495}' data-sheets-numberformat='[null,3,"0.00%",1]'>16.22%</td>
<td style="text-align: right; width: 124.545px;" data-sheets-value='{"1":3,"3":3.4172313491476447}' data-sheets-numberformat='[null,2,"#,##0.00",1]'>3.42x</td>
<td style="text-align: right; width: 116.364px;" data-sheets-value='{"1":3,"3":0.032657164213887084}' data-sheets-numberformat='[null,3,"0.00%",1]'>3.27%</td>
</tr>
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<td style="width: 236.364px;" data-sheets-value='{"1":2,"2":"Iljin Materials Co Ltd"}'>Iljin Materials Co Ltd</td>
<td style="text-align: right; width: 47.2727px;" data-sheets-value='{"1":2,"2":"020150"}'>020150</td>
<td style="text-align: right; width: 115.455px;" data-sheets-value='{"1":3,"3":0.15125967919243655}' data-sheets-numberformat='[null,3,"0.00%",1]'>15.13%</td>
<td style="text-align: right; width: 124.545px;" data-sheets-value='{"1":3,"3":13.371711310342299}' data-sheets-numberformat='[null,2,"#,##0.00",1]'>13.37x</td>
<td style="text-align: right; width: 116.364px;" data-sheets-value='{"1":3,"3":0.01919306152059439}' data-sheets-numberformat='[null,3,"0.00%",1]'>1.92%</td>
</tr>
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<td style="width: 236.364px;" data-sheets-value='{"1":2,"2":"HMM Co Ltd"}'>HMM Co Ltd</td>
<td style="text-align: right; width: 47.2727px;" data-sheets-value='{"1":2,"2":"011200"}'>011200</td>
<td style="text-align: right; width: 115.455px;" data-sheets-value='{"1":3,"3":0.14695677273238528}' data-sheets-numberformat='[null,3,"0.00%",1]'>14.70%</td>
<td style="text-align: right; width: 124.545px;" data-sheets-value='{"1":3,"3":2.818376762499618}' data-sheets-numberformat='[null,2,"#,##0.00",1]'>2.82x</td>
<td style="text-align: right; width: 116.364px;" data-sheets-value='{"1":3,"3":0.022077757350810294}' data-sheets-numberformat='[null,3,"0.00%",1]'>2.21%</td>
</tr>
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<td style="width: 236.364px;" data-sheets-value='{"1":2,"2":"Hyundai Wia Corp"}'>Hyundai Wia Corp</td>
<td style="text-align: right; width: 47.2727px;" data-sheets-value='{"1":2,"2":"011210"}'>011210</td>
<td style="text-align: right; width: 115.455px;" data-sheets-value='{"1":3,"3":0.13411777144290182}' data-sheets-numberformat='[null,3,"0.00%",1]'>13.41%</td>
<td style="text-align: right; width: 124.545px;" data-sheets-value='{"1":3,"3":3.9947088743693655}' data-sheets-numberformat='[null,2,"#,##0.00",1]'>3.99x</td>
<td style="text-align: right; width: 116.364px;" data-sheets-value='{"1":3,"3":0.04089145994437073}' data-sheets-numberformat='[null,3,"0.00%",1]'>4.09%</td>
</tr>
<tr><td colspan="5" style="width: 236.364px;">Source: KRX &amp; KOFIA</td></tr>
</tbody>
</table>The current short interest is 6.26% of the float shares, but this is two trading session-delayed data. Given the still heavy short-selling volume in the last two trading days, it should be well above 7% now. A weekly increase in the short interest is 113.90%, and the loan balance also saw a 68.71% weekly increase. <section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/211/311/original/Doosan+Heavy+Industries.png?1622915529" class="editor-image img-responsive" data-smartkarma-image-id="211311"></figure></section>

Doosan Heavy Industries is right at the center of a potential short-selling attack. It tops the loan balance/float shares ratio among the KOSPI 200 constituents having the short-selling eligibility. A whopping 33.31% of its free-float shares are currently sitting on the loan balance book, representing 6.18 times the 30-day average daily trade volume.









Top 10 loan balance/float shares among KOSPI 200 constituents
Ticker
Loan balance/float shares
Loan balance/ADTV
Short interest/float shares


Doosan Heavy Industries Constrctn Co Ltd
034020
33.31%
6.18x
6.26%


CJ CGV Co Ltd
079160
24.02%
7.21x
2.50%


Doosan Infracore Co Ltd
042670
21.71%
5.22x
5.90%


Lotte Tour Development Co., Ltd.
032350
20.88%
8.60x
15.02%


LG Display Co Ltd
034220
20.59%
10.57x
5.44%


GS Retail Co Ltd
007070
19.10%
9.08x
2.48%


Doosan Fuel Cell Co Ltd
336260
16.22%
3.42x
3.27%


Iljin Materials Co Ltd
020150
15.13%
13.37x
1.92%


HMM Co Ltd
011200
14.70%
2.82x
2.21%


Hyundai Wia Corp
011210
13.41%
3.99x
4.09%

Source: KRX &amp; KOFIA

The current short interest is 6.26% of the float shares, but this is two trading session-delayed data. Given the still heavy short-selling volume in the last two trading days, it should be well above 7% now. A weekly increase in the short interest is 113.90%, and the loan balance also saw a 68.71% weekly increase. 

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