Back on November 26, 2023, I wrote about Warabeya Nichiyo as part of an exercise to explore the distinction between a value stock and a value trap. At the time, I believed Warabeya was a fitting candidate for this analysis. In hindsight, however, the market has proven me wrong—at least so far. Had we invested …
Value Trap vs. Value Stock Thesis: Warabeya Nichiyo (2918) Read More »
Nippon Signal (¥84Bn market cap) maintains a solid order pipeline across its core operations, reinforcing earnings visibility. Its CBTC (Communications-Based Train Control) platform offers structural upside, aligned with long-term rail automation trends. To unlock capital and enhance shareholder value, the company liquidated cross-shareholdings—raising ¥720M in FY3/24 and ¥410M in FY3/25. These proceeds bolster financial agility, …
As of August 7, 2025, 408 stocks in the TSE Prime Market hit year-to-date highs. This could signal market froth—or the emergence of a stock picker’s market, where select equities outperform even as broader indices soften. Among emerging themes, stablecoins warrant attention. Though it’s easy to dismiss stablecoin-related stocks as crypto hype, doing so risks …
Densan System Holdings (4072): Should We Dismiss Stablecoin as Hype? Read More »
I might be late to the name. With 30% foreign ownership, the story may already be well circulated—but I believe its M&A engine is just getting started. Here’s a super quick take on why the next chapter could be even more compelling. Financial metrics: Market Cap: Y 323 Bn, PE (3/26) 23.13x, PB 4.81x ROE …
Nippon Gas (8174) — Following Genda’s Play Book? Read More »
Inforich has hit a rough patch, having missed its earnings guidance. The key question now is whether this is a one-off event or indicative of deeper structural issues. I raised this concern directly with the Inforich management team, who—unsurprisingly—assert that the underperformance in 1H FY2025 was an isolated event. While I’m inclined to agree with …
Inforich 9338: Growth uncertainty? With PE at ~10x and ROE 44% Read More »
Trial Holdings fell 11% on 8/14/25, following the release of its FY6/25 results on 8/13. While the results slightly exceeded its downwardly revised guidance, the sell-off was driven by disappointing FY6/26 guidance. Trial (Y312 Bn, yes I cover larger cap names too) is a Kyushu based retailer known for its Skip Cart (shopping carts …
Toyokoh’s shares declined by 15% over two days following the release of solid Q1 FY3/26 earnings. This reaction is somewhat surprising given the recent strength in Japanese equities. The only apparent weakness in the results was the sales progression, which came in at 23% of the company’s full-year guidance. However, given the lumpy nature of …
Toyokoh Inc. (341A): Stock Decline Post Q1 FY3/26 Earnings Read More »
The stock reacted positively to the great Q1 FY3/26 results. The company’s cross-selling potential is the key driver of this stock’s growth story. Please refer to the quantified cross-selling opportunities detailed at the conclusion of this update note. MIC is a company that supports promotional activities for drugstores and manufacturers through its 360° Full …
After a 9.3% pullback on August 8, Zero is now up 20% since 1/8/25—when I first flagged the name. Over the same period, TOPIX has gained 11%. Despite the recent price dip, I’m reiterating my view on Zero. The original thesis remains intact: the company is actively working to improve its operating profit margin, as …
Zero Co., Ltd (9028): Zero: Still Beating TOPIX—Even After a 9% Dip Read More »
I believe the thematic tone of this note is solid—but the stocks available to play it are ultra micro caps. So if small caps aren’t your thing, feel free to skip this note. Japan’s content industry ranks second only to automotive in scale—and Gen Z is its biggest consumer. The bridge between them? Short-form video. …