CTS Global pivots to invest in Indonesian stocks
Edward Lee’s proprietary trading company, CTS Global [CTS 0.93] [link], disclosed yesterday that it was depositing a chunk of its IPO proceeds into an Indonesian bank, to allow CTS to trade in the Indonesian Stock Market.
CTS didn’t disclose how much of the IPO proceeds it was putting towards this new market, nor did CTS disclose how many of its traders are currently trading in or experienced with making trades in the Indonesian market.
CTS did say that it was making the change because “the country’s commodity-driven nature allowed its stock market to thrive despite the global meltdown”, and the company believes that the recent successful listing of GoTo will inspire other Indonesian tech companies to list in the coming years.
MB BOTTOM-LINE
I’m actually relieved to get a little bit of insight into CTS’s trading strategy here.
Sure, we aren’t getting a detailed rundown of what the company is planning to do, or how it plans to do it, but at least we’re getting a little glimpse into the company’s trading thesis, which appears to be (paraphrased), “commodities will do well in the medium term”, and “there might be some Indonesia-specific tech IPO mania that we can scalp”.
That’s interesting!
We won’t get a chance to see how this change impacts their bottom-line until sometime in October, but we’ll be able to read the Q2 earnings report soon to see how well its efforts in other markets have been paying off.
The stock is still trading about 7% below its IPO offer price of P1.00/share.
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Merkado Barkada's opinions are provided for informational purposes only, and should not be considered a recommendation to buy or sell any particular stock. These daily articles are not updated with new information, so each investor must do his or her own due diligence before trading, as the facts and figures in each particular article may have changed.
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