A newsletter about value investing! Mostly focus on smaller cap value net-nets in Japan. Not affiliated with any fund. If you find my writings actionable, a paid sub is appreciated. Nothing I write is financial advice. Do your own due dilligence!
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The operating business, a fabless semiconductor company that designs and sells custom ASICs, is also capital light and worth something, but we're rounding that down to zero.
Data center tailwinds, the Kodensha comp, and updates on a few old ideas
Factory site located in prime logistics hub where a previous steel site were redeveloped into major logistics project. Land could be worth ¥16bn+. We assume ¥8bn to be conservative.
Trades below the failed MBO price, backed by assets, and now sitting at the center of a quiet control battle.
If a $1bn+ company bid ¥3,201/share and an activist got involved to block the deal, it’s probably worth at least ¥3,201/share and possibly much more. This is a tiny $14.4m nanocap.
A quietly ambitious company pivoting the core toward growth industries while building aerospace materials with GE/Safran. They also announced a 5.7% share buyback today, the first in over a decade.
24% share count reduction since 2014, dividends up over 10×, massive net cash position, and consistently growing net income (8.9x P/E)
$23 million gets you $132 million in Tokyo real estate, some cash & securities, and a pumps business. Passing of the 86 year old chairman with no obvious succession plans could be a catalyst.
In 30 years the company only reported a single QUARTER of operating losses with the full year being firmly profitable. Share price is ¥3,515 vs NCAV+Investments of ¥8,003.
Consistently Profitable but mediocre packaging business backed by under-marked land and a big securities portfolio, offset by an overpaid family chairman. Tiny ($16.4m mcap) and illiquid, but cheap
TOC has tons of real estate, securities, and net cash. Sankyo Kasei is a DOUBLE net-net that repurchased 33% of outstanding shares this year, and Takase is a dirt cheap logistics co.
Company is targetting 1x PBR, Committed to 30% Payout ratio (vs 10-15% historically), + upside if the packaging business can expand margins. NCAV+Investments of ¥5,220 vs a share price of ¥2,885.
This is a net-net if we count investments as current assets. Company is cheap, implemented a 1.6% DoE policy, and the shareholder register leaves room for activism.
Tiny deep value company buys division from uneconomic seller. Stock is cheap with 3% dividend. ¥3,110 share price vs ¥8,522 of NCAV + Investments. Trades at 5x OP and P/E of 7 (EPS forecast of ¥445)
I don't intend on ever putting writeups/investment thoughts behind a paywall, but will share semi annual snapshots of the cheap JP basket with paid subs (Without commentary).
105 year old company and there's even an activist shareholder in the register (Effissimo Capital). Kinki Sharyo is a listed subsidiary of Kintetsu Group (9041).
Table that contains 230 publicly listed companies in Japan that have publicly traded parent companies. Useful for anyone searching for opportunities in parent-child listings.
71% of profits come from their U.S. business, 22% from Japan, 6% from SEA. (Q1-Q3 FY2025). The company only ever lost money in 1 year since 1985.
Two deep value net-nets and a company that owns 40,000 hectares of New Zealand forestry
This $10m nanocap trades at a 57% discount to NCAV + investments and holds land valued at just $22,500 on its balance sheet, yet it is worth at least $5.7M.
