This is the first week where KEDM gets published under new ownership. As mentioned before, from the community/user perspective it will be business as usual. Same Kuppy, same data, same product, same analysts (actually we are picking up 2 new ones!). However, under the new ownership, KEDM will be less restricted in talking about investment themes, especially when it comes to individual securities.
The KEDM pitch used to be that a single investment idea could pay for multiple years of your KEDM subscription. Going forward, the idea is that KEDM also helps save a medium sized fund save on an analyst, or at the very least, make a fund’s existing analysts more efficient.
Over the course of the next couple of months we will be adding extra resources to the team. The eventual goal will be to make KEDM more actionable. Our data analysts will continue to scour through financial filings each week to provide you with the weekly ED monitors. In the KEDM highlights, we discuss a selection of events that we believe are worthy of further research. But there is no more compliance keeping us from sharing our own in-depth research on those names. KEDM will still never make recommendations, but that doesn’t mean we can’t make our subscribers’ research process a lot easier.
We’ve also got several exciting themes lined up to discuss over the next couple of months. Again, we will be able to go more in depth when it comes to naming individual securities. It is all about making KEDM more actionable!
And remember those tutorials on how to best use the less straightforward monitors that we have spoken about for years? Yes, they’re actually being produced right now and will be released periodically. Let’s face it, we all know how to trade around a Spinco, but most of us aren’t trading demutualizations or privatizations on a daily basis…
Finally, KEDM has been collecting ED data for almost 6 years. We are publishing the most actionable events on a weekly basis, but it’s not hard to see that there might be valuable insights hidden in 6-years’ worth of ED data. Which monitors have provided the most alpha? What attributes makes a spinoff successful, and has that changed over the years? These are not questions we have the answer to today, but getting a data analyst/data scientist with an MS Excel license should get us a lot closer.
But before we decide how to put our new analyst capacity to good use, it would be good to hear from you how you have been using KEDM. KEDM is currently in its 6th year and the amount of content has steadily increased. Maybe some monitors have outlived their usefulness and need to be replaced by something else (remember the Krazy Kathie monitor!?). We have prepared a survey that would take about 5 minutes to fill out. That’s less time than we all typically spend on X browsing for new memes.
In the meantime, we are asking you for some patience during this period of transition. Publishing 100+ pages of data each week is a tedious process and we’re bound to experience some hiccups. If you do experience any kind of problems, reach out to our team at in**@**dm.com.
The KEDM team (both old and new) is currently in Hong Kong to further research the HK theme that we wrote about back in July, as well as the broader ‘Buy Chyna’ theme of October 2024. In October we wrote why we’re bullish China:
So, we’ve tried to step into Xi’s shoes and think through what he wants.
Big picture, he just purged a lot of excess from the system and did it without blowing up the banks (yet).
Now he’s ready for the economy to run hotter, BUT without creating a property bubble, BUT without having to build bridges to nowhere, BUT without fueling it all with debt like last time. He wants the economy to pivot. Pivot to what?? Who knows?? He also wants the economy to solve for national strategic goals. He wants a more balanced economy, one that’s less reliant on exports. At the same time, he’s scared that if he goes too fast, he’ll create the sort of runaway economy that we had in 2021, where everyone was trading shit-coins instead of going to work. […]
In summary, we think Xi wants stonks to go up. If you’ve watched a few of the press conferences (we have), and they’ve come across as disjointed and confused, then you’re only sort of paying attention. They’re disjointed because these guys have never done this before. Xi said ‘make it go up’ and his minions, who have no idea what investors want, are trying to figure things out on the fly.
Visits to HK property developers and REITs, as well as to Macau casinos are on the schedule and we hope to provide you with some actionable HK ideas in the next weeks. Stay tuned!