17 Companies Exclusively Listed On The Sapporo Securities Exchange

Thinking Points

  • It seems there are opportunities in difficult-to-access stocks.
  • Sapporo Securities Exchange is a small exchange consisting of 58 listed companies; only 17 of which are exclusively listed.
  • I compiled a list of the exclusively listed companies with basic valuation metrics and a brief description of each company.

Continue reading “17 Companies Exclusively Listed On The Sapporo Securities Exchange”

This Drug Wholesaler Looks Attractive If You Can Get Your Hands On It – SSE: 3055 Hokuyaku Takeyama Holdings

Thinking Points

  • Hokuyaku Takeyama Holdings (SSE: 3055) trades at a discount (negative Enterprise Value!) relative to industry peers despite comparable business performance.
  • Unfortunately, the company is out of reach for many investors as it trades on the Sapporo Stock Exchange.
  • Investors serious about Japanese small caps ought to consider opening a brokerage account with one of Japan’s major securities companies that can trade securities on smaller exchanges or in the “green sheet” market (Japanese OTC).

Continue reading “This Drug Wholesaler Looks Attractive If You Can Get Your Hands On It – SSE: 3055 Hokuyaku Takeyama Holdings”

Poking The Convenience Giants – Welcia Holdings (TYO: 3141)

Thinking Points

  • Major drug store operator Welcia (TYO: 3141)  is becoming Japan’s neighborhood pharmacy.
  • In doing so, the company directly competes with the convenience industry.
  • Welcia maintains a strong position against the giants in convenience, thanks to Aeon’s (TYO: 8267) backing.
  • With its 18x EV/EBIT price tag and many moving parts, Welcia does not present a compelling investment opportunity.
  • Investors ought to look at pharmacy and drug store related industries for opportunities.

Continue reading “Poking The Convenience Giants – Welcia Holdings (TYO: 3141)”

20% EBIT CAGR With A Walmart Twist – TYO: 3349 Cosmos Pharmaceuticals

Thinking Points

  • Cosmos Pharmaceuticals (TYO: 3349) operates drug stores with a Walmart and 7-Eleven-like strategy, delivering industry leading growth (20% 10 year EBIT CAGR) over the past decade.
  • The company’s larger than normal stores target small areas and resembles a neighborhood supermarket.
  • At 18x EV/EBIT, Cosmos is a high quality business trading at an even higher price.

Continue reading “20% EBIT CAGR With A Walmart Twist – TYO: 3349 Cosmos Pharmaceuticals”

Drug Stores Inconveniencing 7-Eleven

Thinking Points

  • Drug stores are entering convenience territory, offering goods typically available at convenience stores.
  • Convenience chains are fighting back by slowly working into the more regulated OTC drug market, mostly through partnerships with drug and pharmacy chains.
  • The distinguishing characteristics of the convenience, drug store, and pharmacy industry are less apparent now.

Continue reading “Drug Stores Inconveniencing 7-Eleven”

Progress, Not Perfection – Lessons From A Japanese Executive Chef

Thinking Points

  • I had the opportunity to spend a whole week with a Japanese executive chef.
  • Through his work and careful explanation, the chef shared insights on thriving in the food industry.
  • The chef’s approach largely incorporated the concept of intrinsic value, a core concept used in value investing.

Continue reading “Progress, Not Perfection – Lessons From A Japanese Executive Chef”

Idea: Japan’s American-inspired IKEA competitor going global – Nitori Holdings (TYO: 9843)

Thinking Points

  • Nitori (TYO: 9843) has delivered outstanding performance with a lovable story.
  • Going above and beyond with its “high quality, affordable products” branding, Nitori is Japan’s most loved furniture brand.
  • At 20x EV/EBIT, however, a considerable level of growth is already priced in. I’ll take another look if share price gets below 10,000 yen vs. today’s 16 ~ 17,000 yen.

Continue reading “Idea: Japan’s American-inspired IKEA competitor going global – Nitori Holdings (TYO: 9843)”

Why I Don’t Invest In Japanese Construction

Thinking Points

  • Japanese construction companies flood value-focused quantitative screens.
  • Japanese construction doesn’t necessarily transfer well in other regions.
  • My avoidance of Japanese construction is simply a decision heuristic, not a suggestion that everybody should avoid Japanese construction.

Continue reading “Why I Don’t Invest In Japanese Construction”

Announcement: Newsletter Launch + Content Changes

Summary

  • First Kenkyo newsletter will be issued on October 16th, 2017.
  • Sample newsletter issue, newsletter description page, and payment portal will go live on October 9th, 2017.
  • Minor content changes coming up with newsletter launch.

Continue reading “Announcement: Newsletter Launch + Content Changes”