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!
The news is that Bandai Namco was selected by the Nikkei inc. to be included in the Nikkei 225, an Index I regard as very flawed by the way.
The news caught many traders on the wrong foot, because they were speculating on another stock being included, namely DMG Mori (JP:6141).
The result was that Bandai Namco last night was not trading on the TSE, as the limit up rule was implemented. It is rumored that demand outstripped supply by 4:1. DMG Mori, on the other end of the "madness" spectrum trading in Japanese stocks, was falling out of bed (down almost 10%).
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