Daily Brief TMT/Internet: Softbank Group, Socionext, NTT (Nippon Telegraph & Telephone), Intouch Holdings, Nintendo, SK Telecom, Nasdaq-100 Stock Index, First Solar Inc, Pinterest Inc and more - Smartkarma

2 years ago 40

TOPIX Inclusion: Socionext (6526 JP) – Momentum Is Fading, Exit Now.

Japan-Based System-On-Chip decorator and IP purveyor Socionext (6526 JP) was listed successful the “Prime” conception of the Tokyo Stock Exchange (TSE) connected 12th October 2022.
When a institution gets listed successful the Prime section, it subsequently gets included successful the TOPIX Index requiring TOPIX-tracking funds to acquisition the banal during an Inclusion Event.
Usually, this presents absorbing trading opportunities to make crisp market-neutral returns successful the abstraction of fewer trading days. Below is simply a look astatine the details for Socionext’s TOPIX Inclusion Event.

The stock terms is astir level since we turned Bearish connected Nintendo citing concerns that the rhythm had peaked
Q2 results released contiguous suggest that the hardware rhythm has so peaked – Switch hardware guidance cut
We spot a deficiency of catalysts for the banal terms implicit the adjacent respective months and stay bearish

Results were mostly affirmative with beardown forex-boosted gross maturation and mobile outperformance
An enlargement of the buyback programme helps sentiment arsenic an further Y150bn programme takes FY22 buybacks to the highest single-year full since 2005
Comments astatine the expert gathering focused connected underlying costs but absorption seems affirmative that it tin negociate with outgo efficiencies

At existent prices, we similar a brace commercialized betwixt SK Telecom (go long) and LG Uplus (go short).
We judge the stock terms spread has widened excessively overmuch successful the past period successful favour of LG Uplus and this spread is apt to adjacent successful the coming weeks.
While LG Uplus tries to grow its non-telecom businesses, this whitethorn impact greater spending connected selling and promotions (as % of sales), which could beryllium a resistance connected its earnings.

First Solar’s bull tally was halted by a beneath par effect successful the past 4th arsenic the institution failed to conscionable Wall Street expectations with respect to revenues arsenic good arsenic earnings.
The company’s manufacturing plants produced 2.4 gigawatts of modules successful the 3rd 4th and sold 2.8 gigawatts.
Besides, their existent fleet’s manufacturing show metrics stay consistent, and plans for the 3rd manufacturing works successful Ohio are inactive connected track.

Pinterest’s show arsenic a banal has been reasonably decent successful what tin beryllium termed arsenic a tumultuous situation for the exertion industry.
The company’s planetary MAUs of 445 cardinal were higher than successful Q3 2021 due to the fact that it mostly overcame the pandemic’s difficulties and accrued idiosyncratic engagement.
During the quarter, they collaborated with Merlin, BMG, Warner Music Group, and Warner Chappell Music to heighten the euphony acquisition connected Pinterest.