Buy after JYP Entertainment’s share price soared… ‘Interest’ in the investment background

Morgan Stanley affiliated asset management company JYP Ent . Investors’ attention is focused on buying a large number of shares. There is generally no disagreement about the growth potential of JYP Entertainment, but when a global asset management company bought stocks at a time when the stock price had more than doubled this year alone, a heated debate arose over the background.

Some investors interpret that the Morgan Stanley manager bought the stake from a long-term perspective, while others say that it was purchased for the purpose of lending for short selling. According to the financial investment industry on the 3rd, Morgan Stanley & Co. International plc , aglobal

investment company affiliated with Morgan Stanley,recently reported that it holds a 5.04% stake in JYP Entertainment. The purpose of holding is ‘simple investment’, he said. Morgan Stanley has been alternating between selling and buying on the market since the 25th of last month, but on the 28th, it sold 7,150 shares and bought 14,660 shares,holding more than 5% of JYP shares. JYP is currently owned by Morgan Stanley. Enter stocks are 1,787,479 shares, accounting for 5.04% of JYP Entertainment’s total shares.

Investors’ attention is focused on the purpose for which Morgan Stanley bought the stock. This is because they purchased a significant amount at a time when JYP Entertainment’s stock price soared. Shares of JYP Entertainment have soared 101% this year. The share price, which was around 67,000 won at the end of last year, exceeded 120,000 won as of the 2nd.

JYP Entertainment’s stock price rose on expectations of earnings improvement and its inclusion in the Morgan Stanley Capital International ( MSCI ) Korea Index. In the financial investment industry, eco-pro, Hanwha Ocean, JYP Entertainment, and Hanmi Semiconductor 메이저놀이터are cited as potential stocks to be newly included in the regular MSCI index change in August. The securities industry predicts that JYP’s stock price will rise further. In 8 of the 10 JYP reports released this month, the target stock price was raised. Ji In-hae, a researcher at Shinhan Investment & Securities (165,000 won), who presented the highest target price, said, ” JYP Entertainment is the only company that develops local idols in Korea, China, and Japan among entertainment companies.” It will make a profit,” he said. There is a high possibility that the stock price will rise further, but the dominant evaluation is that the rise is large in the short term. Because of this, Morgan Stanley and JYP

There is also a prevailing opinion that investing in Enter will not stop at simple investment. There is also an analysis that he bought a stake in JYP Entertainment to secure the volume of short-selling lending .

Morgan Stanley previously invested in EOflow in a similar way. On the 17th of last month, it announced that it had a 5.66% stake in Eoflow, and wrote ‘possession according to long-term investment’. However, it was found that Morgan Stanley subsequently lent EOFlow shares to Vanguard one after another.

Increasing its stake in JYP Entertainment could serve a similar purpose. In particular, Morgan Stanley made a public announcement to buy shares, but it was not just a purchase. Over the course of a few days, I alternated between buying and selling. On the 24th of last month, after the disclosure of the amount held right before the 5% reporting obligation occurred, buying and selling were conducted for 4 consecutive trading days from the 25th to the 28th.

JYP Entertainment’s short selling balance has recently been on the rise. Since short selling requires SLB transactions, an increase in the balance sheet is interpreted as a signal that short selling will increase in the future. According to the Financial Investment Association, as of the 1st, the number of shares in JYP Entertainment’s balance sheet was counted as 2,276,953 shares. It increased from a month ago on June 28 (1,976,614 shares). This means that the number of stocks borrowed for short selling has increased.

The balance of short selling, which is evaluated as a lagging indicator, also increased. According to the short selling portal provided by the Korea Exchange, the short selling balance, which was 49,478 shares on June 27, soared to 100,601 shares on the 27th of last month.

An official from the securities industry said, “The purchase of shares in a global financial company has room for interpretation from various angles.”

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