Many investors have avoided Sankyo and other pachinko companies for a long time and for good reasons. The industry is considered risky due to several factors, including demographics, competition, and regulations. Since my original report on Sankyo as of 1/26/24 (available in this site), the stock appreciated by around 20%. The stock was down by …
baudroie Inc. (4413): Sales Y/Y +40% and OP Y/Y +60% vs. P/E 53x This high-growth IT infrastructure company can be a difficult stock to evaluate, with a myriad of positives offset by several negatives. Positives: The industry-leading sales (FY2/17-24 CAGR of 24%) and profit growth (OP growth CAGR of 40%). Pioneered a new graduates training …
baudroie Inc. (4413): Sales Y/Y +40% and OP Y/Y +60% vs. P/E 53x Read More »
Note 1: This premium potato chip producer is highly illiquid. However, their impressive product strategy and resulting OP margin growth prompted me to prepare a brief memo. Their defensive nature has attracted few foreign buyers (2.3% of total holdings). Nissin Group (2897), a cup noodle giant, owns 45% of the company, contributing to the low …
Workman, once a darling among investors, is now trading at around ¥4,500, a decline of more than 50% from its 2020 high of ¥10,570. I believe Workman is not new to you, thus, this note serves to update you on new developments which I believe may signal a (very) early sign of recovery. From a …
WORKMAN Co., Ltd. (7564): An early sign of recovery? Read More »
Disclaimer: this is NOT an investment recommendation. Before investing in this stock, please do your own research and due diligence. Sunwels (“SW” or the “Company”) operates a specialized nursing facility for Parkinson’s disease called PD House. PD House’s main service is rehabilitation programs but medical attentions are provided by visiting doctors and nurses. I initially …
Mizuno Corp. (8022) + 140% P/E 16.7x vs. Asics (7936) + 150% P/E 36X: which is a better stock? Mizuno and Asics, the two leading sports goods manufacturers in Japan, have a long history of operation. Mizuno was founded in 1923 and Asics in 1943. My initial intention for this report was to demonstrate two …
With its market cap of ¥56 billion, it may be too small for you, but I want to alert you to this strong sales and profit grower. Its 16x P/E ratio versus its 12% expected operating profit growth in FY8/24 suggests a significant undervaluation, especially considering its strong yen-beneficiary business model. Transaction grew its operating …
Transaction Co., Ltd. (7818) – Strong Yen + Oshikatsu: New growth opportunities unlocked Read More »
Note: My original report and supporting data as of 2/26/24 is available in this site. I wrote about Takeuchi Mfg (“TMC”) on February 26, 2024, when the stock was trading at ¥5,400. My premise was based on the belief that Takeuchi represents a “Non-AI secular growth” opportunity fueled by global urbanization and steady US housing …
Trial Holdings Inc. (141A): 2 huge drivers in stock: 1) A retailer with ability to sell Skip Cart (shopping carts with payment functionality), and 2) Topix overhaul Trial presents investment merits from two perspectives: 1) as a beneficiary of the Tokyo Stock Exchange’s reform efforts, and 2) its growth potential. TSE reform Starting with the …
I’ve simplified the two possible reasons behind the recent sell-offs in the US and Japan (note this is a massive simplification on my part): 1) Bank of Japan’s (BOJ) Hawkish Comments: The BOJ’s recent hawkish comments led to Yen appreciation, causing the unwinding of long-standing carry trades (short Yen, long Nasdaq). Japan has net overseas …