5965.JP - Fujimak Corp

[NeverLoseMoney]

I've sold my shares today. I think I can probably find something in Japan that is significantly cheaper. Fujimak is also pretty poor when it comes to buybacks and dividends.

 

It seems a lot of these large price movements in Japan recently are driven by speculators. Daiken (5900.JP) is another one that shot up and almost doubled in one month. Sold that as well. It seems to be coming back down rapidly now. It's not that these companies are now expensive or anything, they've just shot up on fairly large volumes for no particular reason. I don't think this is driven by fundamental investors who suddenly realize these stocks are cheap.

[writser]

1.5 years later - stock has traded over 1450 JPY and now down close to 50% again. Trading at ~7.5x average last 5 year earnings and ~60% of tangible book. Still hoarding cash - should easily be possible to pay out ~50% of the current market cap (which of course I don't expect them to do ..) . Still, starting to look interesting again though I'll probably wait to see if it gets a bit cheaper.

[writser]

Dipped my toes in the water again today. Couldn't help myself. I sold at ~810 JPY in March 2017 (adjusted for stock split). Shares rose to above 1400 JPY since then but are now below 800 again. Yet the company has had record earnings and revenue the past few quarters. Book value has grown to 17.5b JPY since while paying out out a small dividend (market cap 10.5b JPY). Rock solid balance sheet with 9.5b JPY cash. Trading at ~1.7x TTM EV/EBIT. ROE has been >7% the past decade. Revenue is still growing slowly, dividend is growing and no dilution. Very cheap, relatively high quality company.

 

But as always in Japan: capital allocation. Still, I think a few of these could be a nice addition to a diversified portfolio.

[Spekulatius]

I joined in as well a few days ago. I overpaid at 800 yen. The stock is certainly cheap, but doesn’t really trade on fundamentals as far as I can tell. I also own a bit of 9142.T purchased a while ago, based on a VIC writeup  (railroad, real estate) which Is a nice monopolistic business.

[Spekulatius]

I averaged down in this stock when it cratered and now sold a chunk when it shot up more than 30% to ~945¥. Anyone has any idea why the stock cratered and then shot up? Looks like something was announced during the stock session lunch break a few days ago that caused the surge, but I have no idea what was announced. Oh the wonders of the Japanese stock market ...

 

I bought it just because it was too cheap.