Yuka’s Weekend Whispers 3/15/25: Tapping European Recovery via Japanese Stocks

A peace deal between Russia and Ukraine could provide significant benefits for Europe in several areas: -Stability and Security: A ceasefire would lower regional tensions and foster a more stable security environment in Eastern Europe. -Economic Benefits: Ending the conflict could lead to the lifting of sanctions on Russia, reviving trade and economic relations between …

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Yuka’s Weekend Whisper 3/8/25: Top 6 holdings of Varecs, a Japan-based activist investor

On March 7, 2024, it was announced that Varecs, a Japan-based activist investor, increased its ownership in Medikit (7749) by 1.47%, bringing their total stake to 14.17%. This development piqued my interest in understanding—and learning to emulate—what Varecs values in the companies they invest in. After all, imitation is the sincerest form of flattery. Below …

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Ashimori Industry Co., LTD (3526). Trenchless water pipes repair + Toyota production system for PE at 9x and PB of 0.8x.

The recent road collapse incident in Yashio City, Saitama Prefecture, is believed to have been caused by a broken sewer pipe. In Japan, there are about 490,000 kilometers of sewer pipelines buried under roads for water supply and drainage. As of 2022, approximately 30,000 kilometers of these pipes have exceeded their standard lifespan of 50 …

Ashimori Industry Co., LTD (3526). Trenchless water pipes repair + Toyota production system for PE at 9x and PB of 0.8x. Read More »

The Real Impact of the Fuji TV*  Scandal: A Broadcast Bombshel

*Fuji TV: a subsidiary of Fuji Media Holdings (4676) Imagine this: a major Japanese TV network, Fuji TV, goes two full months without airing a single commercial. It sounds unthinkable, but that’s exactly what’s happening. Over 80 advertisers have pulled their commercials in response to a scandal involving unwanted advances and the questionable use of …

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Tauns Laboratories (197A): One of the rare 2024 IPOs which have gone up

While Covid-19 caused significant human suffering, it also unexpectedly boosted certain industries. The medical testing sector, particularly for Covid test kits, experienced substantial market growth during the pandemic. One of the key players in testing markets is Tauns with a market cap of Y63 Bn (yes, small but please read on), PE 10x, and ROE …

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Zero Co., Ltd (9028): Stock +90% in 2024, OP growth + 23% y/y in 24, and guidance 25 OP + 30% and still PE of 6-7x due to low OP margin but this issue will be addressed!

Auto OEMs are not the only way to benefit from the resurgence in interest in Japanese autos. There is a cheaper auto distribution company with higher operating growth prospect: Zero. Its major customer is Nissan, although Nissan’s importance is consistently declining. Thus, Zero can be an indirect beneficiary of the Nissan/Honda tie-up. Zero is an …

Zero Co., Ltd (9028): Stock +90% in 2024, OP growth + 23% y/y in 24, and guidance 25 OP + 30% and still PE of 6-7x due to low OP margin but this issue will be addressed! Read More »

TSE is trying to improve its growth market performance

https://www.jpx.co.jp/english/equities/follow-up/b5b4pj000004yqcc-att/dh3otn000000mgt6.pdf The Tokyo Stock Exchange’s Listing Department outlined future measures for the Growth Market on December 10, 2024 (their presentation attached). The focus is on enhancing market functionality by promoting stricter listing criteria, encouraging mergers and acquisitions (M&A) among growing companies, and fostering core companies that represent Japan. The measures aim to ensure companies achieve …

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