Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Nearly 25 years of experience in analyzing hundreds of companies, especially in Asia. Deep expertise in the following sectors:
- Technology (E-commerce, SaaS, Internet)
- Consumer 
- Special Situations/Deep Value Plays
- Holdcos/Stubs
- Asian Unicorns/Private Companies

Korea/Asia, Events, IPOs

NCsoft Buyback & Short Squeezing Possibilities

NCsoft - Launch of Blockchain, NFT Based Game [Re-Rating of the Entire Game Sector in Korea?]

KRX Investigates Potential Price Manipulation on NCsoft on Nov 11th

End of the 1 Month Lockup Period for Krafton & An Excessive Pricing Gap Vs. NCsoft

Battle Lines Drawn As BABA Builds Out First/Last-Mile Capacity; But Who Will Fund 75+ Bn CNY CapEx?

Event-Driven

After the market close today, <a href="https://www.smartkarma.com/entities/ncsoft-corp" target="_blank" data-smartkarma-citation="entities:5169:1" rel="noopener">NCSOFT Corp (036570 KS)</a> announced that it will buy back 300,000 shares. At current prices, this represents 190 billion won. The purchase period is from 8 September to 7 December. NCsoft's share price has fallen 42% since the peak in early February 2021 and 25% since the end of July.The average daily trading volume (ADTV) for NCsoft has been 517k in the past 10 days. As a result, although the share buyback may not result in a sharply rebounding share price for the company, it may be able to stop the share price bleeding it has experienced in the past month. Valuation gap between NCsoft and Krafton likely to narrow - With NCsoft buying back shares and Krafton joining the KOSPI200 index on September 10th which will allow investors to short the stock, these events are likely to lead to closing the valuation gaps between the two stocks in the coming days. In other words, we believe NCsoft's share price could outperform Krafton's share price in the coming weeks.

After the market close today, NCSOFT Corp (036570 KS) announced that it will buy back 300,000 shares. At current prices, this represents 190 billion won. The purchase period is from 8 September to 7 December. NCsoft's share price has fallen 42% since the peak in early February 2021 and 25% since the end of July.The average daily trading volume (ADTV) for NCsoft has been 517k in the past 10 days. As a result, although the share buyback may not result in a sharply rebounding share price for the company, it may be able to stop the share price bleeding it has experienced in the past month. Valuation gap between NCsoft and Krafton likely to narrow - With NCsoft buying back shares and Krafton joining the KOSPI200 index on September 10th which will allow investors to short the stock, these events are likely to lead to closing the valuation gaps between the two stocks in the coming days. In other words, we believe NCsoft's share price could outperform Krafton's share price in the coming weeks. 

NCsoft - Announces a Buyback Worth 190 Billion Won To Stop Share Price Bleeding