Net Net Deep Value Play Benefiting From Governance Reform – Ohmoto Gumi (TSE: 1793)

Thinking Points

  • Profitable net net with $300mm USD market cap and manageable liquidity.
  • 1/5 of shares in treasury and consistent dividend.
  • Forecasted IRR at time of writing of 21% over 3 years with 9000Y target price.

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One Quick Way To Gauge Your Next Japanese Investment

Thinking Points

  • Many investors looking into Japan focus on net-net screens, but probably want more.
  • There is a lot of free valuable information packed into Japanese filings if you know where to look: One is foreign ownership data.
  • With foreign ownership data, you can get a feel for how familiar other foreign investors are with a Japanese company’s story.

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Life Robotics Acquisition Just Fanuc’s Latest Step Out Of Its Comfort Zone

Thinking Points

  • Leading industrial robotics giant Fanuc (TSE: 6954) recently acquired Life Robotics with hopes to expand its addressable market.
  • The acquisition is uncharacteristic of an internally-focused Fanuc, but so are several of the company’s other strategic initiatives.
  • With Fanuc’s openness to partnerships with leaders in other domains, the next 20 years of Fanuc’s developments is unlikely to resemble the last 20.

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Keiretsu Safe Haven Fading For Mitsubishi Heavy Industries (TSE: 7011)

Thinking Points

  • Mitsubishi Heavy Industries (TSE: 7011) has faced strong headwinds in recent years.
  • Like many of the Japanese Keiretsus (business groups), the Mitsubishi Keiretsu has been known to help one another out during difficult times.
  • It seems the Keiretsu structure is changing as Mitsubishi Heavy didn’t get the helping hand it was looking for.

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List: 3 Japanese Refrigeration Companies To Look At For Frozen Food

Thinking Points

  • Frozen food is here to stay, and there are several ways to look at this.
  • Today, we will take a quick look at 3 Japanese refrigeration equipment companies.
  • One traded at negative EV just a short year ago.

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Announcement: Kenkyo Premium Membership Site Is Live Now

Summary

  • Kenkyo Premium Membership is live now.
  • Service offering includes: Kenkyo Japan Newsletter (monthly), Premium articles, and Member forum.
  • Premium article posting will start in February 2018.

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Expanding Japanese Hotel Concept Employs 60+% Less Labor

Thinking Points

  • A new hotel brand under major travel agency HIS (TSE: 9603) is eyeing rapid expansion over the next 5 years.
  • Dubbed the “strange” hotel, Henn na Hotel is operated by robots and employs less labor compared to peers.
  • Parent company HIS plans on taking a similar approach to its Dutch-inspired theme park.

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The Future Of Food

Thinking Points

  • My recent trips to several food processing plants in China and Japan has triggered a few thoughts about the food industry.
  • Frozen food quality is improving. This is likely to drive change in how the industry operates.
  • Investors ought to not only pay attention to frozen food companies, but also companies impacted by frozen food (like distributors).

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26 Companies Exclusively Listed On The Fukuoka Stock Exchange

Thinking Points

  • In continuation from last week’s difficult-to-access Sapporo Securities Exchange article, here is a list of 26 companies exclusively listed on the Fukuoka Stock Exchange.
  • Fukuoka, the home to Japan’s 4th largest metropolitan area, is a thriving business center in the Kyushu region.
  • The Fukuoka Stock Exchange list contains several interesting companies like fish feed maker Higashimaru (FSE: 2058) and packing material makers Ohishi Sangyo (FSE: 3943) and Maruto Sangyo (FSE: 7894).

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