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

Samsung Electronics DRAM Economics: Adj. Valuation Shows Upside Potential at Current Price

SEC 47k Rejection Targets Base Case Support

Samsung Electronics Voluntary Red Flag on 1Q Earnings

Samsung Electronics Share Class: Long 1P / Short Common on Falling Memory Prices

Samsung's NXP Acquisition: Story Again Resurfaces, Trade Approach on SamE Common/1P

Reason Why Amazon Canceled DRAM Order from Samsung: Short-Term Impact on Samsung

Event-Driven

<ul>
<li>SamE Common/1P reached a +2σ level. On a 120D horizon, price ratio is currently at the peak. Pref discount is at 21.04%. This of course is a 120D high. We are now right at the AGM phase (Mar 20). Common gets boosted around this time. It seems true that the recent M&amp;A stories also helped Common move over 1P.</li>
<li>I don't expect to see a continued upwardly divergence in favor of Common from this point. AGM factor should be gone this week. We still have M&amp;A factor. This will likely be offset by shorter-term fundamentals factors such as further falling profits and DRAM design flaws.</li>
<li>Div yield difference on FY19e is 0.87%p. This is even higher than last year which was a record high in 3 years. I expect SamE 1P to make a move over Common from this point.</li>
</ul>


SamE Common/1P reached a +2σ level. On a 120D horizon, price ratio is currently at the peak. Pref discount is at 21.04%. This of course is a 120D high. We are now right at the AGM phase (Mar 20). Common gets boosted around this time. It seems true that the recent M&amp;A stories also helped Common move over 1P.
I don't expect to see a continued upwardly divergence in favor of Common from this point. AGM factor should be gone this week. We still have M&amp;A factor. This will likely be offset by shorter-term fundamentals factors such as further falling profits and DRAM design flaws.
Div yield difference on FY19e is 0.87%p. This is even higher than last year which was a record high in 3 years. I expect SamE 1P to make a move over Common from this point.


Samsung Electronics Pref Shares (005935 KS)

Samsung Electronics Share Class Trade: Common at +2σ, Expect Reversion After AGM This Week