generalsandworkouts Posted March 9, 2020 Share Posted March 9, 2020 I've just bought some more KG Intelligence Co (2408). It has discounted NCAV of 529 yen per share (mostly cash) as well as some land. It's currently trading at 262 yen. Business is v. crappy and declining, but it's too cheap IMO. These things can stay cheap for a long time, so best to use a basket approach. Link to comment Share on other sites More sharing options...
Stuart D Posted March 9, 2020 Share Posted March 9, 2020 9628 - San Holdings inc. Largest funeral services provider in Japan (source: https://www.capitalisticman.com/profiting-from-death-global-funeral-industry-overview-and-analysis/) Shares outstanding: 11,166,249 Price: ¥1,101 / share M.cap: ¥12.3b Total liabilities: ¥4.3b Cash: ¥5.3b A few other assets up their sleeve as well. Profit: ¥1.5 (2018), ¥2.1b (2019) This may be morbid, but we could expect their profits to grow short term (virus) and long term (relatively old population). Link to comment Share on other sites More sharing options...
ValueHippie Posted March 10, 2020 Share Posted March 10, 2020 7523.T Art Vivant Profitable netnet that is growing. Full writeup: http://findstox.com/2020/03/10/growing-netnet-with-good-upside-potential/ Link to comment Share on other sites More sharing options...
Spekulatius Posted March 10, 2020 Share Posted March 10, 2020 Bought some Tosnet Corp 4754.T. Security service provider. Found it using Kenkyo Investing Magic formula screen. Very cheap and growing. Substantial net cash and FCF. Link to comment Share on other sites More sharing options...
mjohn707 Posted March 11, 2020 Author Share Posted March 11, 2020 I bought shares in 8050 Seiko Holdings just below current prices, maybe 1750 yen per share. Trades maybe around 70% of book, not including any current losses in the equity holdings, and something around 9-10X earnings. This is sort of on the more expensive side for a Japanese name, but the company has recognizable brand names in the popular line of Seiko watches, a significant export business, a number of new premium offerings, and pays a good dividend. The company's ROIC has been decent, and free cash has gone over the last number of years towards paying down debt. It's reasonable I think and at the floor of the 5-year average valuations. Link to comment Share on other sites More sharing options...
generalsandworkouts Posted March 11, 2020 Share Posted March 11, 2020 I also bought some Taihei Machinery Works Ltd (6342). It trades at roughly NCAV, has a PE < 5 and pays a reasonable dividend. Link to comment Share on other sites More sharing options...
samwise Posted March 12, 2020 Share Posted March 12, 2020 1782 is down back to its lows, cheap on p/e, p/b, decent dividend, still decent ROE, which I don’t understand in the construction business. They recently reorganized their organization, and published it, down to local sales who were reassigned. Is this usual in Japan? Link to comment Share on other sites More sharing options...
Janeo Posted March 26, 2020 Share Posted March 26, 2020 Bought these cigar butts recently: TYO: 4234 Sun A. Kaken TYO: 5928 ALMETAX TYO: 6467 NICHIDAI Link to comment Share on other sites More sharing options...
mjohn707 Posted March 26, 2020 Author Share Posted March 26, 2020 It really seems like a lot of these Japanese net-nets have help up better than the market, or at least better than certain areas of the market, possibly because they're so well capitalized and names with debt have just been killed. In any case, I've been selling that names that have held up to buy US names that seem relatively cheaper now. Who knew that the only way these things would actually outperform the market would be in some sort of cataclysm? Link to comment Share on other sites More sharing options...
fishwithwings Posted March 30, 2020 Share Posted March 30, 2020 It really seems like a lot of these Japanese net-nets have help up better than the market, or at least better than certain areas of the market, possibly because they're so well capitalized and names with debt have just been killed. In any case, I've been selling that names that have held up to buy US names that seem relatively cheaper now. Who knew that the only way these things would actually outperform the market would be in some sort of cataclysm? Do you mind sharing some of the US names? Maybe not on this thread b/c it's for Japanese stocks tho. Link to comment Share on other sites More sharing options...
mjohn707 Posted March 30, 2020 Author Share Posted March 30, 2020 It really seems like a lot of these Japanese net-nets have help up better than the market, or at least better than certain areas of the market, possibly because they're so well capitalized and names with debt have just been killed. In any case, I've been selling that names that have held up to buy US names that seem relatively cheaper now. Who knew that the only way these things would actually outperform the market would be in some sort of cataclysm? Do you mind sharing some of the US names? Maybe not on this thread b/c it's for Japanese stocks tho. I mentioned some names in another thread here: https://www.cornerofberkshireandfairfax.ca/forum/general-discussion/companies-with-a-fortress-balance-sheet-and-liquidity-at-the-moment/msg404747/#msg404747 What do people usually say, do your own research? Statistically though I'm not sure it makes a difference Link to comment Share on other sites More sharing options...
fishwithwings Posted March 30, 2020 Share Posted March 30, 2020 It really seems like a lot of these Japanese net-nets have help up better than the market, or at least better than certain areas of the market, possibly because they're so well capitalized and names with debt have just been killed. In any case, I've been selling that names that have held up to buy US names that seem relatively cheaper now. Who knew that the only way these things would actually outperform the market would be in some sort of cataclysm? Do you mind sharing some of the US names? Maybe not on this thread b/c it's for Japanese stocks tho. I mentioned some names in another thread here: https://www.cornerofberkshireandfairfax.ca/forum/general-discussion/companies-with-a-fortress-balance-sheet-and-liquidity-at-the-moment/msg404747/#msg404747 What do people usually say, do your own research? Statistically though I'm not sure it makes a difference thx :) Link to comment Share on other sites More sharing options...
Foreign Tuffett Posted September 25, 2020 Share Posted September 25, 2020 Nansin (7399) Probably controlled by Saito family. Manufactures and distributes caster wheels and related products. Very small (about $32 million USD market cap), not terribly liquid. ~2% dividend yield @ current stock price. As you would expect, margins aren't great but company is consistently profitable. Trades at about a 39% discount to NCAV. The company has a YouTube channel. Can anyone watch the below video and NOT think the stock is a strong buy? Look how well those carts roll! And that music! https://www.youtube.com/watch?v=FPyP71QwSck&t=19s Link to comment Share on other sites More sharing options...
Foreign Tuffett Posted September 25, 2020 Share Posted September 25, 2020 Kawagishi Bridge Works (5921) Structural steel fabrication company (for things like bridges and high rise buildings). Like much of the Japanese construction industry, may be controlled by the yakuza. More than twice the size of Nansin by market cap, and more liquid. ~3% dividend yield. Trades at a whopping ~50% discount to NCAV, but something like this needs and will always have lots of current assets. Cheap on an income statement basis too, with market cap / TTM operating profit ratio around 6X. Link to comment Share on other sites More sharing options...
Foreign Tuffett Posted September 25, 2020 Share Posted September 25, 2020 DAISHIN CHEMICAL CO (4629) Manufactures and sells paint thinners and other similar products. Market cap is the equivalent of about $62 million USD. ~2.2% dividend yield. Trades 16 or 17% below NCAV. Market cap / last fiscal year's (ended 3/31/20) operating profit is ~4.3X. I think the core business here is decent, but like all J-nets the company is OVERCAPITALIZED. Link to comment Share on other sites More sharing options...
Foreign Tuffett Posted September 25, 2020 Share Posted September 25, 2020 Isamu Paint (4624) Manufactures and sells paints and related products. I believe they specialize in automotive repair paints. Margins in core biz seem solid. Market cap is the equivalent of $51 or $52 million USD. Typical trading volume is very low, maybe a few hundred shares a day. I don't know the extent of insider ownership, but it is probably very high. ~1.75% dividend yield. Grossly overcapitalized, even more so than even the other three companies I have posted. Calculating the discount to NCAV is a little tricky since the company owns a great deal of long term investment securities. If you exclude them altogether then the stock is at maybe a 24% discount to NCAV. If you 'cheat' and treat them as current assets, then the discount to this adjusted NCAV figure approaches 57%. This is the last of the four J-nets I own. If anyone has any thoughts, thinks my #s are wrong, etc, feel free top chime in. Link to comment Share on other sites More sharing options...
MattR Posted January 16, 2021 Share Posted January 16, 2021 I bought shares in 8050 Seiko Holdings just below current prices, maybe 1750 yen per share. Trades maybe around 70% of book, not including any current losses in the equity holdings, and something around 9-10X earnings. This is sort of on the more expensive side for a Japanese name, but the company has recognizable brand names in the popular line of Seiko watches, a significant export business, a number of new premium offerings, and pays a good dividend. The company's ROIC has been decent, and free cash has gone over the last number of years towards paying down debt. It's reasonable I think and at the floor of the 5-year average valuations. They seem to have a lot of debt and not really high cashflow. Why did you decide to invest in them? I really like their watches so I would really love to know. Link to comment Share on other sites More sharing options...
mjohn707 Posted January 19, 2021 Author Share Posted January 19, 2021 I bought shares in 8050 Seiko Holdings just below current prices, maybe 1750 yen per share. Trades maybe around 70% of book, not including any current losses in the equity holdings, and something around 9-10X earnings. This is sort of on the more expensive side for a Japanese name, but the company has recognizable brand names in the popular line of Seiko watches, a significant export business, a number of new premium offerings, and pays a good dividend. The company's ROIC has been decent, and free cash has gone over the last number of years towards paying down debt. It's reasonable I think and at the floor of the 5-year average valuations. They seem to have a lot of debt and not really high cashflow. Why did you decide to invest in them? I really like their watches so I would really love to know. My stated reason was to buy at the lower end of the historical P/B and P/average earnings and all of that, but clearly I was just looking for a 25% loss in a market where everything else has just flown up Link to comment Share on other sites More sharing options...
CorpRaider Posted January 19, 2021 Share Posted January 19, 2021 I started looking at a couple of the Japanese trading cos with ADRs after the BRK investment. As a retail schmuck, I set it aside, deciding it was probably more attractive for me if I gained potential options on future JVs (i.e., by going through BRK). Link to comment Share on other sites More sharing options...
MattR Posted January 19, 2021 Share Posted January 19, 2021 I bought shares in 8050 Seiko Holdings just below current prices, maybe 1750 yen per share. Trades maybe around 70% of book, not including any current losses in the equity holdings, and something around 9-10X earnings. This is sort of on the more expensive side for a Japanese name, but the company has recognizable brand names in the popular line of Seiko watches, a significant export business, a number of new premium offerings, and pays a good dividend. The company's ROIC has been decent, and free cash has gone over the last number of years towards paying down debt. It's reasonable I think and at the floor of the 5-year average valuations. They seem to have a lot of debt and not really high cashflow. Why did you decide to invest in them? I really like their watches so I would really love to know. My stated reason was to buy at the lower end of the historical P/B and P/average earnings and all of that, but clearly I was just looking for a 25% loss in a market where everything else has just flown up With the rise of smartwatches I can't see them having a great future. What would be the catalyst for the company to go back to it's higher valuations over the last 5 years ? I just wanted to have some more context to your investment since I am not able to find out how it would go back up again. Link to comment Share on other sites More sharing options...
mjohn707 Posted January 19, 2021 Author Share Posted January 19, 2021 I bought shares in 8050 Seiko Holdings just below current prices, maybe 1750 yen per share. Trades maybe around 70% of book, not including any current losses in the equity holdings, and something around 9-10X earnings. This is sort of on the more expensive side for a Japanese name, but the company has recognizable brand names in the popular line of Seiko watches, a significant export business, a number of new premium offerings, and pays a good dividend. The company's ROIC has been decent, and free cash has gone over the last number of years towards paying down debt. It's reasonable I think and at the floor of the 5-year average valuations. They seem to have a lot of debt and not really high cashflow. Why did you decide to invest in them? I really like their watches so I would really love to know. My stated reason was to buy at the lower end of the historical P/B and P/average earnings and all of that, but clearly I was just looking for a 25% loss in a market where everything else has just flown up With the rise of smartwatches I can't see them having a great future. What would be the catalyst for the company to go back to it's higher valuations over the last 5 years ? I just wanted to have some more context to your investment since I am not able to find out how it would go back up again. I would suspect you'd likely need a rebound in earnings to get closer to historical valuations, which may or may not be in the cards. This issue of the smartwatch is certainly a complication, and probably a bigger risk at the lower end of the market, but I'm just not convinced that it means that they can't do well in the future Link to comment Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now