Author Topic: Japanese Basket  (Read 27488 times)

Foreign Tuffett

  • Hero Member
  • *****
  • Posts: 1256
Re: Japanese Basket
« Reply #60 on: September 05, 2019, 09:57:20 AM »
I own some of those.  Since I started investing in Japan I've hardly ever lost money but many times I haven't made much either.  The currency moved against me a little but the main problem is that these companies simply aren't run for the shareholders.  A lot of times even if the business is decent they'll sit on cash for years on end earning like 4% on equity.  Their business culture is very different.  I forgot where I read it but someone was describing how they bought out a sake brewer.  The guy's family had been doing it for like 500 years or something crazy and then he sold out.  Apparently that was a very unorthodox decision and he was going to be seen as a failure for abandoning the family business.  Price paid, returns on other prospective investments, etc. didn't figure into it.  It kind of reminds me of how people view farm land where i grew up.

One thing I think might be smart, if you think there's a decent chance there's some sort of mass awakening of all these zombie companies, is to look for the ones that hold a lot of securities.  That way you'd get a double re-rate.  But to me it's a big if if this even happens.  It would be interesting to hear from people who are over there what the feeling is.

The sake anecdote is from an article I linked to back in April.

Yeah, I would probably characterize the attitude of the average Japanese management team towards outside shareholders as benign neglect. They aren't actively hostile like Sardar Biglari, Chinese reverse mergers, or some of the Ukrainian companies listed in Poland. It's just that they have other priorities (no layoffs, fortress balance sheet, maintaining the firm's independence, saving face)  that are more important to them than maximizing shareholder value.
Former Teldar Paper Vice President


CorpRaider

  • Hero Member
  • *****
  • Posts: 2393
    • The Corpraider
Re: Japanese Basket
« Reply #61 on: September 10, 2019, 11:42:12 AM »
It is sort of like Teldar Paper before Gordon Gekko.

writser

  • Hero Member
  • *****
  • Posts: 2171
Re: Japanese Basket
« Reply #62 on: September 24, 2019, 11:38:06 AM »
A cool blog post about a peculiarity of the Japanese stock market:
http://undervaluedjapan.blogspot.com/2019/09/getting-by-on-yuutai.html
I'm sorry if I have offended you. Please contact this forum's safe space coordinator to work things out.

@thewritser

Foreign Tuffett

  • Hero Member
  • *****
  • Posts: 1256
Re: Japanese Basket
« Reply #63 on: September 24, 2019, 12:14:28 PM »
A cool blog post about a peculiarity of the Japanese stock market:
http://undervaluedjapan.blogspot.com/2019/09/getting-by-on-yuutai.html

Great, yet another example of Japanese management teams entrenching themselves in order to maintain the status quo.
Former Teldar Paper Vice President

hillfronter83

  • Sr. Member
  • ****
  • Posts: 250
Re: Japanese Basket
« Reply #64 on: January 02, 2020, 04:56:18 AM »
I recently read a few books about Japan that helps me understand Japanese company and business in general.

Japan's New Middle Class and Japan as Number One both written by Harvard east Asia scholar Ezra Vogel. Although both books are initially published decades ago, I think a lot still apply in today's Japanese business.

How to Ignite the Low Desire Society by Kenichi Ohmae which talked about challenges faced by Japanese society today.

Janeo

  • Newbie
  • *
  • Posts: 14
  • twitter.com/janeo1934
Re: Japanese Basket
« Reply #65 on: January 30, 2020, 06:15:22 PM »
Bought these over the past couple of months.

5971.T Kyowakogyosyo Co
7266.T IMASEN ELECTRIC
7614.T OM2 Network


Couldn't find an existing topic for HK stocks, but are there any interest in those as well? Bought the below recently too. Available for PM to avoid derailing this thread. :)

Computime (HK:0320)
Hung Hing Printing (0450:HK)
Qingling Motors (1122:HK)
Ming Fai (3828:HK)

generalsandworkouts

  • Newbie
  • *
  • Posts: 4
Re: Japanese Basket
« Reply #66 on: January 31, 2020, 04:21:12 AM »
Thanks for sharing those ideas, Janeo. I currently hold NKK Switches (TYO:6943), Sanko Sangyo (TYO:7922), Yotai Refractories (TYO:5357), Katsuragawa Electric (TYO:6416) and Fujix Ltd (TYO:3600).

Some other names I've been looking at recently: Kaneso (Nagoya:5979), Geomatec (Sapporo:2137), Somar (TYO:8152) and Nankai Plywood (TYO:7887).

Out of the three you mentioned, Kyowakogyosyo is most attractive to me at first glance.
I write about deep value stocks, net-nets and special situations on my blog: https://generalsandworkouts.blogspot.com/

Spekulatius

  • Hero Member
  • *****
  • Posts: 4952
Re: Japanese Basket
« Reply #67 on: February 01, 2020, 06:48:22 AM »
^ Based on what are you guys buying these stocks and how are you finding those? Look for low price to book and excess cash? I scroll around the the Japan exchange website from time to time and find plenty of cheap looking stocks, but most of them are cigar buts in a sense that nothing much happens and the share price bounces around allow decent exits from time to time. There seem to be some transformational stories, but I havenít been able to latch onto those before the crowds do? I only own a bit of 4624.T (Isamu Paint) now and poking around some others like 3001.T  (real estate Transformation, there is a VIC writeup if I remember correctly) etc. The money is really in transformational stories and I feel like I am at an information disadvantage here.
« Last Edit: February 06, 2020, 06:44:54 PM by Spekulatius »
Life is too short for cheap beer and wine.

Janeo

  • Newbie
  • *
  • Posts: 14
  • twitter.com/janeo1934
Re: Japanese Basket
« Reply #68 on: February 01, 2020, 05:02:32 PM »
Yea that's about it. Take a screener and look for low p/b, low enterprise value, multi years low etc then flip them if they go up. I find it hard to track those growth/turnaround/special situation plays so I stay away from them.

mjohn707

  • Sr. Member
  • ****
  • Posts: 282
Re: Japanese Basket
« Reply #69 on: February 29, 2020, 09:37:55 AM »
Anyone keeping an eye on things with this latest downturn?  Any low P/E names or anything like that?  I'll post below what lit up on my watchlist, some of this is going to be repeated names, but it's stuff that I thought looked cheap at the current prices:

2055
4624
5918
5921
6303
6496
6648
6943
7229
7399
7501
7628
7902
7937
8144
9885
Follow me on twitter https://twitter.com/mjohn707