'Quantamental' Japan Specialist, LightStream Research

Campbell Gunn

'Quantamental' Japan Specialist

ja research

ja research is an independent research platform focused exclusively on Japanese equities. Leveraging data and graphic analysis provided by Japan Analytics, we provide insights on small and medium-sized companies that have been ignored by the sell-side as well as challenging conventional wisdom on larger companies. We also offer analyst and corporate access, the latter with translation if required. 

Quantitative Analysis

<div class="content-caption">
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/068/507/original/2018-11-02_10-20-29.png?1541121653" class="editor-image img-responsive" data-smartkarma-image-id="68507"></figure>Source: Japan Analytics
NB: companies are colour-coded by sector
</div>28 YEARS OF NON-FINANCIAL MARKET LEADERSHIP - To offer some light relief from the current market, we have compiled a graphic illustrating the evolution in the ranking of the leading non-financial Japanese companies by market capitalisation measured at the end of each of the last 28 years.METHODOLOGY - Our comments follow in the detail below, but first a few notes:-<ul>
<li>In the interests of clarity (/sanity?), financials have been omitted. Twelve of the Top 20-ranked companies in 1990 were financials. However, only <a href="https://www.smartkarma.com/entities/742" target="_blank" data-smartkarma-citation="entities:742:1">Nomura (8604 JP)</a>, <a href="https://www.smartkarma.com/entities/6483" target="_blank" data-smartkarma-citation="entities:6483:1">Aozora (8304 JP)</a> and <a href="https://www.smartkarma.com/entities/16897" target="_blank" data-smartkarma-citation="entities:16897:1">Shinsei (8303 JP)</a> have survived in their original corporate structure and have the same ticker code. Our chart would have otherwise have included the now-merged IBJ, Fuji Bank, Dai-Ichi Kangyo Bank, Mitsubishi Bank, Sakura Bank, Sumitomo Bank, Tokai Bank, Sanwa Bank and Mitsubishi Trust Bank.  Excluded from the present-day Top 20 are <a href="https://www.smartkarma.com/entities/218" target="_blank" data-smartkarma-citation="entities:218:1">Mitsubishi UFJ (8306 JP)</a>, <a href="https://www.smartkarma.com/entities/217" target="_blank" data-smartkarma-citation="entities:217:1">Sumitomo Mitsui Financial (8316 JP)</a>, <a href="https://www.smartkarma.com/entities/838" target="_blank" data-smartkarma-citation="entities:838:1">Japan Post Bank (7182 JP)</a>, <a href="https://www.smartkarma.com/entities/359" target="_blank" data-smartkarma-citation="entities:359:1">Japan Post Holdings (6178 JP)</a> and <a href="https://www.smartkarma.com/entities/219" target="_blank" data-smartkarma-citation="entities:219:1">Mizuho Financial (8411 JP)</a> from the present day.</li>
<li>Only companies that were in the Top 20 in 1990 or 2018, as well as those companies that have been in the Top 10 for at least three of the last 28 years, have been included. </li>
<li>Two companies from 1990's Top 20 - Seibu Railway and Japan Airlines - have since been delisted. Although they have relisted as <a href="https://www.smartkarma.com/entities/458" target="_blank" data-smartkarma-citation="entities:458:1">Seibu Holdings (9024 JP)</a> and <a href="https://www.smartkarma.com/entities/1184" target="_blank" data-smartkarma-citation="entities:1184:1">Japan Airlines (9201 JP)</a>, they are no longer highly-ranked.</li>
<li>Seven current Top 20 companies - (<a href="https://www.smartkarma.com/entities/315" target="_blank" data-smartkarma-citation="entities:315:1">Softbank (9984 JP)</a>, <a href="https://www.smartkarma.com/entities/1089" target="_blank" data-smartkarma-citation="entities:1089:1">NTT Docomo (9437 JP)</a>, <a href="https://www.smartkarma.com/entities/639" target="_blank" data-smartkarma-citation="entities:639:1">KDDI (9433 JP)</a>, <a href="https://www.smartkarma.com/entities/13498" target="_blank" data-smartkarma-citation="entities:13498:1">Japan Tobacco (2914 JP)</a>, <a href="https://www.smartkarma.com/entities/13520" target="_blank" data-smartkarma-citation="entities:13520:1">Central Japan Railway (9022 JP)</a>, <a href="https://www.smartkarma.com/entities/751" target="_blank" data-smartkarma-citation="entities:751:1">Fast Retailing (9983 JP)</a> and <a href="https://www.smartkarma.com/entities/15070" target="_blank" data-smartkarma-citation="entities:15070:1">Recruit (6098 JP)</a>)  - have listed during the last 28 years. </li>
</ul>THE 2050 RANKING?- Which of the current market leaders will still be in the Top 20 in 2050 in their current guise? For those still around to read this in 32 year's time, we would wager on just three - <a href="https://www.smartkarma.com/entities/3077" target="_blank" data-smartkarma-citation="entities:3077:1">Keyence (6861 JP)</a>, <a href="https://www.smartkarma.com/entities/73" target="_blank" data-smartkarma-citation="entities:73:1">Toyota Motor (7203 JP)</a> and <a href="https://www.smartkarma.com/entities/563" target="_blank" data-smartkarma-citation="entities:563:1">Sony (6758 JP)</a>.


Source: Japan Analytics
NB: companies are colour-coded by sector
28 YEARS OF NON-FINANCIAL MARKET LEADERSHIP - To offer some light relief from the current market, we have compiled a graphic illustrating the evolution in the ranking of the leading non-financial Japanese companies by market capitalisation measured at the end of each of the last 28 years.METHODOLOGY - Our comments follow in the detail below, but first a few notes:-
In the interests of clarity (/sanity?), financials have been omitted. Twelve of the Top 20-ranked companies in 1990 were financials. However, only Nomura (8604 JP), Aozora (8304 JP) and Shinsei (8303 JP) have survived in their original corporate structure and have the same ticker code. Our chart would have otherwise have included the now-merged IBJ, Fuji Bank, Dai-Ichi Kangyo Bank, Mitsubishi Bank, Sakura Bank, Sumitomo Bank, Tokai Bank, Sanwa Bank and Mitsubishi Trust Bank.  Excluded from the present-day Top 20 are Mitsubishi UFJ (8306 JP), Sumitomo Mitsui Financial (8316 JP), Japan Post Bank (7182 JP), Japan Post Holdings (6178 JP) and Mizuho Financial (8411 JP) from the present day.
Only companies that were in the Top 20 in 1990 or 2018, as well as those companies that have been in the Top 10 for at least three of the last 28 years, have been included. 
Two companies from 1990's Top 20 - Seibu Railway and Japan Airlines - have since been delisted. Although they have relisted as Seibu Holdings (9024 JP) and Japan Airlines (9201 JP), they are no longer highly-ranked.
Seven current Top 20 companies - (Softbank (9984 JP), NTT Docomo (9437 JP), KDDI (9433 JP), Japan Tobacco (2914 JP), Central Japan Railway (9022 JP), Fast Retailing (9983 JP) and Recruit (6098 JP))  - have listed during the last 28 years. 
THE 2050 RANKING?- Which of the current market leaders will still be in the Top 20 in 2050 in their current guise? For those still around to read this in 32 year's time, we would wager on just three - Keyence (6861 JP), Toyota Motor (7203 JP) and Sony (6758 JP). 

Japan: The Evolution Of (Non-Financial) Market Leadership

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Capital Markets

<ul class="">
<li>
Headquartered in Austin, Texas, <a href="https://www.smartkarma.com/entities/15648" target="_blank" data-smartkarma-citation="entities:15648:1">Solarwinds Inc (SWI US)</a> is a leading global provider of IT infrastructure management software systems. The company is getting ready for an IPO in the NASDAQ exchange this week with a price of US$17 to US$19 per share. At the mid-point of the IPO price range (US$18 per share), the company's market cap would be US$5.4 billion, and would raise about US$756 million. </li>
<li>SolarWinds first went public in 2009. In February 2016, the company was acquired by private equity firms Silver Lake and Thoma Bravo for US$4.5 billion in a leveraged buyout. Both Silver Lake and Thomas Bravo are highly reputable private equity firms and these stakeholders should be mostly positive for the SolarWinds IPO.</li>
<li>One of the company's key strategies is to target focus on the technology professionals. According to the company, "it does not have an outside sales force or professional services organization. It does not wine and dine the C-suite. It does not sponsor golf tournaments or buy Super Bowl ads." Rather, the company markets and sells its products directly to the IT professionals, including network and systems engineers, database administrators, and managed service providers (MSPs).  </li>
<li>The company's major competitors include <a href="https://www.smartkarma.com/entities/15269" target="_blank" data-smartkarma-citation="entities:15269:1">Netscout Systems (NTCT US)</a>, <a href="https://www.smartkarma.com/entities/1064" target="_blank" data-smartkarma-citation="entities:1064:1">Intl Business Machines (IBM US)</a>, MicroFocus (MFGP US), CA Technologies (CA US), BMC Software, Nagios, Manage Engine, ConnectWise, Continuum, Datto, and Kaseya. This remains a fragmented industry ripe for consolidation. In terms of comparable companies, <a href="https://www.smartkarma.com/entities/15269" target="_blank" data-smartkarma-citation="entities:15269:1">Netscout Systems (NTCT US)</a> and CA Technologies (CA US) appear to be most comparable. Investors are also likely to take into consideration the recent acquisition of BMC Software by KKR. In addition, the recent software IPOs in 2018 including <a href="https://www.smartkarma.com/entities/27117" target="_blank" data-smartkarma-citation="entities:27117:1">Zuora Inc (ZUO US)</a>, <a href="https://www.smartkarma.com/entities/27060" target="_blank" data-smartkarma-citation="entities:27060:1">DocuSign Inc (DOCU US)</a>, and <a href="https://www.smartkarma.com/entities/27115" target="_blank" data-smartkarma-citation="entities:27115:1">Smartsheet Inc (SMAR US)</a> are likely be used as comparable companies for SolarWinds. </li>
</ul>



Headquartered in Austin, Texas, Solarwinds Inc (SWI US) is a leading global provider of IT infrastructure management software systems. The company is getting ready for an IPO in the NASDAQ exchange this week with a price of US$17 to US$19 per share. At the mid-point of the IPO price range (US$18 per share), the company's market cap would be US$5.4 billion, and would raise about US$756 million. 
SolarWinds first went public in 2009. In February 2016, the company was acquired by private equity firms Silver Lake and Thoma Bravo for US$4.5 billion in a leveraged buyout. Both Silver Lake and Thomas Bravo are highly reputable private equity firms and these stakeholders should be mostly positive for the SolarWinds IPO.
One of the company's key strategies is to target focus on the technology professionals. According to the company, "it does not have an outside sales force or professional services organization. It does not wine and dine the C-suite. It does not sponsor golf tournaments or buy Super Bowl ads." Rather, the company markets and sells its products directly to the IT professionals, including network and systems engineers, database administrators, and managed service providers (MSPs).  
The company's major competitors include Netscout Systems (NTCT US), Intl Business Machines (IBM US), MicroFocus (MFGP US), CA Technologies (CA US), BMC Software, Nagios, Manage Engine, ConnectWise, Continuum, Datto, and Kaseya. This remains a fragmented industry ripe for consolidation. In terms of comparable companies, Netscout Systems (NTCT US) and CA Technologies (CA US) appear to be most comparable. Investors are also likely to take into consideration the recent acquisition of BMC Software by KKR. In addition, the recent software IPOs in 2018 including Zuora Inc (ZUO US), DocuSign Inc (DOCU US), and Smartsheet Inc (SMAR US) are likely be used as comparable companies for SolarWinds. 


SolarWinds Corp IPO Preview (Part 1) - "Make IT Look Easy"

Asia Long-Short PM/Analyst

Curtis Lehnert

Equity Bottom-Up

Do the letters PUBG mean anything to you? Have mini-programs changed the way you use WeChat? Do you like Mao Buyi's song 'Xiao Chou' or did you not think he deserved to be picked in The Coming One? Did you answer 'no' to any of these questions?  Are you wondering what any of this has to do with Tencent?  If so, you have come to the right place.  
This insight is for those who do not cover Tencent, or perhaps have not taken a close look at Tencent in a while.  This insight is for those who want to understand:
<ul>
<li>the structure of Tencent's business units</li>
<li>what are the various platforms and services under the massive Tencent umbrella</li>
<li>financial performance over the past five years, in a snapshot</li>
<li>three fun facts about the company </li>
</ul>
If you need a one-stop read to understand the business of Asia's largest listed company, this is the insight for you.  All of the facts, none of the fluff.

Do the letters PUBG mean anything to you? Have mini-programs changed the way you use WeChat? Do you like Mao Buyi's song 'Xiao Chou' or did you not think he deserved to be picked in The Coming One? Did you answer 'no' to any of these questions?  Are you wondering what any of this has to do with Tencent?  If so, you have come to the right place.  
This insight is for those who do not cover Tencent, or perhaps have not taken a close look at Tencent in a while.  This insight is for those who want to understand:

the structure of Tencent's business units
what are the various platforms and services under the massive Tencent umbrella
financial performance over the past five years, in a snapshot
three fun facts about the company 

If you need a one-stop read to understand the business of Asia's largest listed company, this is the insight for you.  All of the facts, none of the fluff.

Actionable Insights, Assured Alpha, ANTYA Investments

ANTYA Investments

Actionable Insights, Assured Alpha

Investing That Empowers You

ANTYA Investments Inc., regulated by the Ontario Securities Commission, is registered to provide wealth management services in Canada. ANTYA manages institutional, and high net-worth client portfolios on a discretionary basis. Our investment philosophy embraces a Core-Satellite approach.  The core of the portfolio is chosen from a group of fifteen asset classes. A few stock specific asymmetrical investment opportunities comprise the satellite segment. ANTYA invests only in global, large capitalization, and investment grade companies.  

Event-Driven

With the acquisition of CA Technologies, <a href="https://www.smartkarma.com/entities/999" target="_blank" data-smartkarma-citation="entities:999:1">Broadcom Corp Cl A (BRCM US)</a> is sending a signal that the smartphone business has peaked. It also highlights the challenge associated with finding the next leg of the Company's growth story, which in our view, met its end at the hands of CFIUS.

With the acquisition of CA Technologies, Broadcom Corp Cl A (BRCM US) is sending a signal that the smartphone business has peaked. It also highlights the challenge associated with finding the next leg of the Company's growth story, which in our view, met its end at the hands of CFIUS. 

Broadcom Limited – From Leading Edge to Over the Edge. Multiple Compression Forthcoming!

Equity Analyst - Technology & Healthcare

Norm Kumar

Pennock Idea Hub

We are creators of independent equity research. The Pennock Idea Hub team are veterans of the investment industry. Much of our team has spent their careers at Merrill Lynch, Deutsche Bank, RBC Capital Markets and Wood Gundy. We have taken every aspect of research back to the studs and returned to first principles. The Pennock Idea Hub marries the interests of the sell and buy side. 

We offer the best research for institutional investors by:

-Only publishing research from veteran analysts
-Eliminate the inherent conflicts of the traditional sell and buy side relationship
-Ensure our team is always accessible; collaboration with clients nurtures our collective success

Cross-Asset & Quantitative Research

Thematic (Sector/Industry)

A weekly review of AI related news stories impacting public companies. In this issue we take brief look at Google's recent entry into healthcare. They used AI to analyze EHRs and demonstrated a high degree of success in predicting potential outcomes. This result could embolden the Company to enter the healthcare analytics field in an aggressive manner. Also highlighted is the continued success of the Chinese in the supercomputer field. Chinese deployments now make up over 40% of the Top 500 supercomputers. This success may offer a blueprint and timeline for Chinese initiatives in AI and Quantum Computing. Finally, the combination of AI &amp; Robotics is opening up new market opportunities. Demand for industrial robotics grew 29% last year and shows no signs of slowing. Increased functionality through AI will only increase demand.

A weekly review of AI related news stories impacting public companies. In this issue we take brief look at Google's recent entry into healthcare. They used AI to analyze EHRs and demonstrated a high degree of success in predicting potential outcomes. This result could embolden the Company to enter the healthcare analytics field in an aggressive manner. Also highlighted is the continued success of the Chinese in the supercomputer field. Chinese deployments now make up over 40% of the Top 500 supercomputers. This success may offer a blueprint and timeline for Chinese initiatives in AI and Quantum Computing. Finally, the combination of AI &amp; Robotics is opening up new market opportunities. Demand for industrial robotics grew 29% last year and shows no signs of slowing. Increased functionality through AI will only increase demand.

Is Google Preparing a Major Entry into Healthcare? Robots and AI Are Going Mainstream & More

United States

International Business Machines Corporation (IBM) provides computer solutions through the use of advanced information technology. The Company's solutions include technologies, systems, products, services, software, and financing. IBM offers its products through its global sales and distribution organization, as well as through a variety of third party distributors and resellers.

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International Business Machines (IBM US)

Japan: The Evolution Of (Non-Financial) Market Leadership

28 YEARS OF NON-FINANCIAL MARKET LEADERSHIP - To offer some light relief from the current market, we have compiled a graphic illustrating the...

Campbell Gunn

SolarWinds Corp IPO Preview (Part 1) - "Make IT Look Easy"

Headquartered in Austin, Texas, Solarwinds Inc (SWI US) is a leading global provider of IT infrastructure management software systems. The...

Douglas Kim

Tencent (700 HK): A Generalist's Guide

Do the letters PUBG mean anything to you? Have mini-programs changed the way you use WeChat? Do you like Mao Buyi's song 'Xiao Chou' or did you not...

Curtis Lehnert

Broadcom Limited – From Leading Edge to Over the Edge. Multiple Compression Forthcoming!

With the acquisition of CA Technologies, Broadcom Corp Cl A (BRCM US) is sending a signal that the smartphone business has peaked. It also...

ANTYA Investments

Is Google Preparing a Major Entry into Healthcare? Robots and AI Are Going Mainstream & More

A weekly review of AI related news stories impacting public companies. In this issue we take brief look at Google's recent entry into healthcare....

Norm Kumar

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