MORESCO’s Q1 FY2/27 results—and the stock’s 20% limit‑up reaction—offer a useful read on whether AI/DC infrastructure demand is actually fading. Expectations were low (0.88x P/B, small cap ¥22bn), yet the quarter was far stronger than what a “finished” AI trade would imply. Markets are debating whether hyperscalers are slowing capex. If that were true, MORESCO—whose …
Moresco (5018) – Are AI/Data Center Trades Over? Read More »
I am using HSK’s strong Q1 FY2/27 results to reintroduce my Mitsubishi Heavy alternative (although it may be too small at Y35 Bn). My initial 5/3/26 note is available for my clients. If you’d prefer to start by sampling my work, I’d be happy to send it straight to your inbox at no cost. I’m confident …
While the market remains fixated on crowded AI hardware plays, smart capital is quietly rotating into Autonomous AI Software. In my latest institutional deep-dive, I break down a premier fintech trailblazer newly named the No. 1 “10-bagger candidate” for the next decade. Sharing the exact financial signature of past legendary compounders (like Lasertec and Capcom), …
The Next Decade’s Defining 10-Bagger? The Pivot to Autonomous AI Software Read More »
In the world of Japanese corporate compounders, investors have recently fallen head over heels for speed. Modern “roll-up” platforms are commanding massive valuation premiums by rapidly acquiring sexier tech, semiconductor, and data center assets. But while the market rewards these fast-paced newcomers, a true pioneer of Japan’s manufacturing ($monozukuri$) M&A-compounding model has been left completely …
The Left-Behind Pioneer: A 25-Year M&A Compounder Trading at a Deep Discount Read More »
No change in investment thesis As a corporate engagement consulting firm, LMI (MC Y60 bn, TSE P) is structurally positioned to grow regardless of which sectors outperform in Japan. The nationwide labor shortage touches every industry—including AI—ensuring that demand for LMI’s core value proposition (improving employee engagement, retention, and productivity) remains broad‑based. Once the “death …
Monogatari Corp (MC) is a Y186 market cap operator of yakiniku, sushi/shabu‑shabu, ramen, and okonomiyaki restaurant formats nationwide through both directly managed and franchise (FC) locations, with many stores situated along major suburban roads. It was founded in 1949 as an oden shop called Shubō Genji, but entered Yakiniku (BBQed beef on the table) in …
The Toyo Keizai article confirms what’s been anecdotal: Japan is becoming a structural winner from the global AI build‑out. The surge in data‑center construction and electricity demand is now visible in trade statistics, not just industry chatter. Amid disruptions in the Strait of Hormuz, Japan’s April crude imports collapsed 67% y/y to the lowest level …
The AI Shovel Sellers: Japan’s Quiet Fortune in the Global Tech Boom Read More »
My 5/3/26 HSK note (attached), which highlighted the company as an alternative way to gain exposure to the same structural tailwinds benefiting MHI, turned out to be poorly timed. This was especially disappointing given my argument that MHI’s valuation metrics at the time—a P/B of 5.8x, FY3/27 P/E of roughly 53x, and EV/EBITDA of 17.6x—were …
Hoden Seimitsui Kako Kenkyusho (“HSK”) (6469) – Why Mitsubishi Heavy Is Dropping Read More »
Please note that this is for your information only. This is probably one of my craziest experiments. I’ve built an unapologetically value‑heavy portfolio in the middle of an AI/large‑cap/Kioxia‑driven market. You might have heard of the legendary investor Tatsuro Kiyohara. He is one of Japan’s most successful and influential hedge fund managers, having compounded extraordinary …
Kiyohara/Yuka Portfolio Experiment (6/1/26 starting) Read More »
Ishihara Sangyo (ISK, cap Y119 bn) is a chemical company: Core products are agrochemicals and Electric Component (mainly, MLCC/Multilayer Ceramic Capacitor. MLCC is one of the most common electronic components in the world — every phone, car, PC, and piece of industrial equipment uses them. The stock fell sharply by 18% on 5/23 following weaker‑than‑expected …