Issue 10

Issue 10 960 540 Wickhams Hill


Completed IPOs: We’ve found multiple small Indonesian listings that have offered big returns right out of the gate. Our Upcoming IPO monitor actively tracks the pipeline of local deals with a few small names currently in the pipeline.

Upcoming IPOs: Another upcoming IPO in Indonesia, PT Avia Avian, that’s currently being shopped around to foreign funds is unsurprisingly less attractive. We reviewed the PDIE and highlight several issues that investors should be questioning such as the quality of forecast earnings growth that underpins the valuation, as well as vague disclosure around seemingly significant related party transactions.

Insider Transactions: The Philippines continues to present opportunities as the market trades on local news and foreign buyers remain underweight. We picked up on some insider buying by James Go of Robinsons Land (RLC PM) totaling USD 2.3mn, ahead of what we think will be a better-than-expected recovery in mall foot traffic.

Buybacks: Malaysian energy and coffee drink manufacturer, Power Root (PWRT MK), has been buying back shares after, ongoing disruptions from the pandemic caused a large share price decline. However, this has historically been a profitable business and seems like a good time for small-cap bargain hunters to start doing some work.

Volume Surge: Huge block trades equal to about 28% of Beauty Community’s (BEAUTY TB) total outstanding shares took place on the 12th and 14th of October. Despite our best efforts, we haven’t managed to ascertain the origin of the transaction but we have been waiting some time for a reason to revisit this fallen angel.