randomep Posted November 20, 2014 Posted November 20, 2014 Today I stumbled upon a blog about investing in Japan I had never noticed before. It has some potentially interesting ideas and features a series of posts on shareholder activism in Japan. Nice read to get a feeling for the situation over there. http://undervaluedjapan.blogspot.de/2014/04/the-little-post-about-shareholder.html http://undervaluedjapan.blogspot.de/2014/05/the-little-post-about-shareholder.html http://undervaluedjapan.blogspot.nl/2014/06/the-little-post-about-shareholder.html Bit unrelated to net-nets but I didn't want to open a new topic for this. great find! thank you!
matjone Posted November 21, 2014 Posted November 21, 2014 Hey guys, where are you seeing anything about a tender for Co Cos? I had not heard about this until I saw it here. Thanks
mjohn707 Posted November 21, 2014 Posted November 21, 2014 I received a letter from my broker. They have a press release on their website too but it's in japanese
mjohn707 Posted November 21, 2014 Posted November 21, 2014 It's 785 yen per share for a minimum of 3,011,392 shares of 4,444,683 outstanding
matjone Posted November 21, 2014 Posted November 21, 2014 Thanks. Apparently the market is expecting it to go and is not expecting the offer to be raised. If what value edge says is true then selling seems to be the move here. Especially since it is such a !@#$ business.
The Value Edge Posted November 21, 2014 Posted November 21, 2014 It is a great business to be honest and I am quite sad to let it go. However, given the lack of activism in Japan and all, don't see anyone going to start fighting for our rights and preventing such a sale from going true haha.
crocodon Posted March 3, 2015 Posted March 3, 2015 One of my holdings, KG Intelligence (TYO:2408), has gained a lot recently, but I can't figure out why. Can anyone shed any light?
NeverLoseMoney Posted March 3, 2015 Posted March 3, 2015 One of my holdings, KG Intelligence (TYO:2408), has gained a lot recently, but I can't figure out why. Can anyone shed any light? I don't know, I've seen this with a few of my other Japanese net-nets as well. People just warm up to them from time to time I guess. I owned a very small position in KG Intelligence, but sold a few days ago. Meanwhile my net-net screen for Japan is down to a record low number of hits and for the first time in two years I'm actually having some trouble to find good replacements for positions I sold in Japan.
oddballstocks Posted March 3, 2015 Posted March 3, 2015 One of my holdings, KG Intelligence (TYO:2408), has gained a lot recently, but I can't figure out why. Can anyone shed any light? I don't know, I've seen this with a few of my other Japanese net-nets as well. People just warm up to them from time to time I guess. I owned a very small position in KG Intelligence, but sold a few days ago. Meanwhile my net-net screen for Japan is down to a record low number of hits and for the first time in two years I'm actually having some trouble to find good replacements for positions I sold in Japan. Have seen something similar myself. A month or two ago most positions were flat or negative. Suddenly I'm very positive on a few now. I have no idea why, happy with the turn of events. Patience is required with this.
crocodon Posted March 4, 2015 Posted March 4, 2015 One of my holdings, KG Intelligence (TYO:2408), has gained a lot recently, but I can't figure out why. Can anyone shed any light? I don't know, I've seen this with a few of my other Japanese net-nets as well. People just warm up to them from time to time I guess. I owned a very small position in KG Intelligence, but sold a few days ago. Meanwhile my net-net screen for Japan is down to a record low number of hits and for the first time in two years I'm actually having some trouble to find good replacements for positions I sold in Japan. Have seen something similar myself. A month or two ago most positions were flat or negative. Suddenly I'm very positive on a few now. I have no idea why, happy with the turn of events. Patience is required with this. I guess perhaps it's a case of value being its own catalyst? ;-)
lathinker Posted March 4, 2015 Posted March 4, 2015 How do you guys determine when to sell these stock bought on a quantitative basis? Do you just exist after you made 30, 100, 200%? Do you have a target PE, EV/EBIT or PB ratio? To me, it occurs less straightforward to assess the companies' businesses if bought by the numbers. It would make sense to exit on a quantitative basis aswell, but I would be interested to learn how others go about it.
crocodon Posted March 4, 2015 Posted March 4, 2015 I generally sell when the price starts getting close to my estimate of intrinsic value (which for these investments is predominantly based on the balance sheet).
NeverLoseMoney Posted March 4, 2015 Posted March 4, 2015 I mostly own net-nets and I sell those when they reach NCAV. I have also sold some a bit earlier when I could find a significantly cheaper stock. It makes sense to stick to the numbers in my approach, because I know little about the individual businesses.
frank Posted March 11, 2015 Posted March 11, 2015 One of my holdings, KG Intelligence (TYO:2408), has gained a lot recently, but I can't figure out why. Can anyone shed any light? The Nikkei is @ 15-year high and this does make a big difference to sentiment believe it or not :) I don't think the rally in small names is predominantly fundamental-driven at this time as some businesses are still couping with the drop in demand following the sales tax hike but I do have a gut feeling that fundamentals may follow prices this time as Japan Inc is finally in pretty good shape after all that they have been through in the last five years. We are running out cheap names to buy in Japan but generally speaking many micro-cap names are still relatively cheap in Japan versus in other markets. If you like the U.S. economy but dislike the valuation in the U.S. markets, then the smaller cap sector in Japan may be where you want to take a deeper look. Lower yen vs. the dollar, higher wages, lower oil price, and a business-friendly administration are all that's going to help get their economy back on track.
matjone Posted March 11, 2015 Posted March 11, 2015 Was anyone else invested in Tomen Electronics, 7558? Toyota Tsusho tendered for all their remaining shares at 1650 (http://www.toyota-tsusho.com/english/press/detail/140822_002679.html) last year, but IB never said a word about it and they still list it as a position for me. From what I can tell the tender went through because now I can't find it quoted anywhere.
matjone Posted March 11, 2015 Posted March 11, 2015 I see they went from 40% to 63% ownership. But nothing comes up when I search for them on the TSE website.
NeverLoseMoney Posted March 12, 2015 Posted March 12, 2015 I see they went from 40% to 63% ownership. But nothing comes up when I search for them on the TSE website. The company was delisted on Dec. 25, 2014: http://www.tse.or.jp/english/news/07/141128_l.html Quote from that page: At the general shareholders meeting of TOMEN ELECTRONICS CORPORATION (hereafter "the Company") held today, the following matters were approved. (1) Changing the Company to a company that issues classified shares as specified in the Companies Act; (2) Attaching a clause for acquiring all common shares that are issued by the Company; and (3) In return for acquiring all common shares of the Company, allotting a different class of shares in the Company (as a result, cash payment is scheduled). Not sure if I'm understanding it right, but perhaps a squeeze out of minority holders is in process? I found a document from PWC that also describes minority squeeze outs in Japan: https://www.pwc.com/jp/ja/advisory/research-insights-report/assets/pdf/tra_0706_01.pdf
matjone Posted March 12, 2015 Posted March 12, 2015 Thanks for that info. I put in a ticket with IB to see if they could find a place to sell it.
writser Posted December 2, 2015 Posted December 2, 2015 Nice blogpost by a forum member giving an overview of his current Japan basket: http://www.valueinvestingblog.net/japanese-net-nets-update/ . Thanks to this post I also stumbled upon a blog I hadn't seen before with some new Japan ideas: http://www.deepvalueideas.com/.
ATLValue Posted December 2, 2015 Posted December 2, 2015 Anyone look at Funai Electric? I purchased it about a month ago and so far it has been a dog: The good: One of the larger net nets in Japan - I've seen some research that both the largest and smallest net nets typically outperform within the basket. CUrrently my holdings are mostly micro / small caps so I like having a larger name in the mix. It had a a pretty attractive F Score of 7 when I purchased it and recent profitability after years of losses. The bad: Unsure if the recent profitability that the company experienced is temporary (probably is). Recent quarterly results weren't great. Poor industry Conclusion: Company is SUPER cheap 35% Price / NCAV - considering buying more
writser Posted December 2, 2015 Posted December 2, 2015 A quick glance on Morningstar would make me assume the recent profitability is temporary. Terrible ROE, no buybacks, tiny dividend, book value decreased during the past seven years. I'm not touching it. But yeah, it is cheap based on NCAV. In general, given that it is almost impossible for us foreigners to understand anything about obscure Japanese stocks except for the most basic numbers I would always take a diversified approach. In other words, I don't see why you would want to double down on this name when you can buy a second net-net instead. It's not like we have an information advantage. Gotta give the market some credit.
ATLValue Posted December 3, 2015 Posted December 3, 2015 Yes i agree, I probably wont be buying more of this in my basket. What sources do most people use to find their Net Nets?
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