´´ Value Investing Japan

Tuesday, August 6, 2019

Kawasumi Laboratories (JP:7703) - The Beauty and The Beast


Introduction


This post will scrutinize the ever increasing cash holdings and corporate governance issues at Kawasumi Laboratories, a deep value J-Net stock and long term holding of mine.

The stock was first mentioned on the blog in 2012 as a deep value idea. Quantitative metrics in 2012 indicated that the company was trading in the Japanese stock market at a significant discount to its intrinsic value.


Although earnings growth and return metrics have been at best paltry since the initial investment, liquid assets in the form of cash holdings have been ever increasing during the holding period. Although the stock appreciated roughly 75% (excl. Dividends) during that time, the combination of significantly increased cash holdings and absence of interest-bearing debt, has pushed the company into obscene valuation territories, seldom seen in my career as a value investor in the spirit of Graham and Dodd.

Thursday, July 11, 2019

Still Surprised Getting Surprised Investing in Japan

Apparently Bloomberg News is!

Blue Chip Bounce: Bandai Namco Limit Up on Nikkei 225 ‘Surprise’ (Bloomberg)

Japan can be quite an odd place investing in publicly trading companies. Most of the time it is exciting as watching paint dry. But all of a sudden the investing thesis is getting vindicated, although not seldomly only temporarily, in a short period of time. In other jurisdictions the reasons for such revaluations of companies on the stock market would have "minor" impacts price wise. In Japan they can be huge! Almost like TOB announcements.

Today we are talking about Bandai Namco (JP:7832), a core position of mine for a long time. Mentioned on the Blog Here and Here!

Monday, June 17, 2019

J- Vids of Interest


Vintage Video of T. Boone Pickens on Koito Manufacturing.











Monday, May 27, 2019

News on Japan - Week 22, 2019


Shareholder activism -- Japan can learn from Germany
by Dr. Jochen Legewie (Nikkei Asian Review)

A decade ago, Steel Partners, TCI and other activist fund managers were shown the door by Japan Inc. But now they are back in force.

Japan toys with shareholder capitalism just as the West balks
(Economist)

Activist investors are taking a ninja-like approach to stodgy companies