Hidden Value Gems
6⃣ "Controlling shareholders can make the stock price fall and then make minority shareholders sell
to them."

7⃣"If control changes, only the controlling shareholders get the premium."

8⃣"Directors’ loyalty is to the company, not shareholders." hermes-investment.com/upload…
5/5
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Hidden Value Gems
5⃣"While such buybacks at cheap valuations theoretically benefit all shareholders, the shares bought back are not cancelled. They remain available – if necessary – to be on-sold by directors to friendly parties if control ever needs to be more fully secured."

4/5
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Hidden Value Gems
3⃣ "Low dividends keep cash receipts and stock prices down – just the way many controlling shareholders like it."

4⃣ "The creative methods some controlling shareholders use to extract cash": related party transactions (e.g. selling property to the company they control at eye-popping valuation, royalty payments).

3/5
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Hidden Value Gems
2⃣ "The outsized political power of a tiny number of powerful families that control companies. These families benefit from unusual laws that serve their interests, and disregard the interests of other investors."

2/5
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Hidden Value Gems
An interesting piece on the reasons for huge valuation discounts of Korean companies (by Federated Hermes):

1⃣ "The high effective inheritance tax that applies in South Korea to large estates, which (after surcharges) can be as high as 60%." This forces controlling shareholders to extract value from companies in other ways.

1/5
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Hidden Value Gems
$BABA cutting cloud prices by 20%. This is the second cut in a year (the first one was 50%). I guess we can forget about Cloud profitability for a while now.

Apparently, Alibaba is still the market leader in China cloud, followed by Huawei and Tencent.
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4) Bitcoin ETFs Stir Market —

The arrival of Bitcoin ETFs on Wall Street shakes up the crypto market, possibly reshaping digital asset investment strategies. #BitcoinETF
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3) India's Chip Sector Boost —

India greenlights $15 billion investment for semiconductor manufacturing, marking a significant tech industry milestone. #Semiconductor
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2) Webull Goes Public —

Webull announces its entry into the public market with a massive $7.3 billion SPAC deal, signaling growth in the online trading sector. #Webull
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1) Kretinsky's New Atos Bid —

Czech billionaire Daniel Kretinsky considers a fresh takeover offer for French tech firm Atos, eyeing strategic expansion. #Atos
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Haleon reports accelerated revenue growth, defying market challenges and bolstering consumer health confidence. #HaleonGrowth
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3) China Cracks Down on High-Frequency Trading —

China tightens its grip on market fairness by punishing a hedge fund for high-frequency index futures trades. #ChinaHFT
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2) Sony-Zee Merger Plans Scrapped —

In a major industry twist, Sony withdraws from merger discussions with Zee, signaling shifts in media alliances. #SonyZee
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1) Morgan Stanley Faces SEC Fraud Charges —

SEC charges Morgan Stanley and ex-exec Pawan Passi with fraud in block trading, shaking trust in banking integrity. #MorganStanley
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