Value Investing in my Circle of Competence, Hurdle Rate

Hurdle Rate

Value Investing in my Circle of Competence

The name “Hurdle rate” was inspired by none other than Mark Leonard of Constellation Software, and their prolific use of a fixed hurdle (discount) rate for their investments. Had you invested into Constellation Software at the time of their IPO as an Australian Investor you would of seen your investment multiply by >100x or (>35% CAGR), an enviable record (Updated March 2023).

Equity Bottom-Up

<ul><li>Avant was founded in 1997 by the current CEO Tetsuji Morikawa and is a Japanese holding company of financial and non-financial software which have the collective goal of assisting its clientele to increase corporate value.</li><li>This includes ‘Diva’ as Japan’s foremost (43% market share) consolidated accounting software and board meetings platform in addition to ‘Avant’, a management system for corporate value enhancement through consolidation of information (Avant Cruise) , charting (Avant Chart) , and corporate value enhancement (Avant Compass).</li><li>Lastly, there is ‘Zeal’ which includes several non-financial platforms that help organise and integrate (with Avant Cruise) from external sources. And interestingly, Avant also owns and operates Internet Disclosure Co, which runs Kaijinet, a site I have frequently visited over the years.</li></ul>

Avant was founded in 1997 by the current CEO Tetsuji Morikawa and is a Japanese holding company of financial and non-financial software which have the collective goal of assisting its clientele to increase corporate value.This includes ‘Diva’ as Japan’s foremost (43% market share) consolidated accounting software and board meetings platform in addition to ‘Avant’, a management system for corporate value enhancement through consolidation of information (Avant Cruise) , charting (Avant Chart) , and corporate value enhancement (Avant Compass).Lastly, there is ‘Zeal’ which includes several non-financial platforms that help organise and integrate (with Avant Cruise) from external sources. And interestingly, Avant also owns and operates Internet Disclosure Co, which runs Kaijinet, a site I have frequently visited over the years.

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

TSE2-listed consolidated accounting software suite/services provider <a href="https://www.smartkarma.com/entities/12653" target="_blank" data-smartkarma-citation="entities:12653:1">Avant Corp (3836 JP)</a> announced its <a href="https://www.avantcorp.com/news/wp-content/uploads/2018/02/20180213.pdf" target="_blank">Q2 earnings</a>, a <a href="https://www.avantcorp.com/news/wp-content/uploads/2018/02/20180213-1.pdf" target="_blank">reassignment</a> from the TSE2 to the TSE1, and an <a href="https://www.avantcorp.com/news/wp-content/uploads/2018/02/20180213-2.pdf" target="_blank">Offering</a>.H1 Results were reported February 13th. H1 Revenues at the firm came in 14.7% better year-on-year and 5.9% better than the Toyo Keizai forecast. OP came in +11.7%yoy and 17.9% better than the TK forecast. Net Profits in H1 came in at 431mm yen, +135%yoy and 80% higher than the Toyo Keizai forecast. The company showed a 50%…

TSE2-listed consolidated accounting software suite/services provider Avant Corp (3836 JP) announced its Q2 earnings, a reassignment from the TSE2 to the TSE1, and an Offering.H1 Results were reported February 13th. H1 Revenues at the firm came in 14.7% better year-on-year and 5.9% better than the Toyo Keizai forecast. OP came in +11.7%yoy and 17.9% better than the TK forecast. Net Profits in H1 came in at 431mm yen, +135%yoy and 80% higher than the Toyo Keizai forecast. The company showed a 50%…

Avant (3836 JP) II: TSE1 Promotion and TOPIX Inclusion

Equity Capital Markets

On February 13th, TSE2-listed smallcap (JPY 16.7bn market cap) accounting/planning/management software purveyor (software named DivaSystem) <a href="https://www.smartkarma.com/entities/12653" target="_blank" data-smartkarma-citation="entities:12653:1">Avant Corp (3836 JP)</a> announced its <a href="https://www.avantcorp.com/news/wp-content/uploads/2018/02/20180213.pdf" target="_blank">Q2 earnings</a>, a <a href="https://www.avantcorp.com/news/wp-content/uploads/2018/02/20180213-1.pdf" target="_blank">reassignment</a> from the TSE2 to the TSE1, and an <a href="https://www.avantcorp.com/news/wp-content/uploads/2018/02/20180213-2.pdf" target="_blank">Offering</a>.The Secondary Offering of 1.956mm shares is a selldown of about one-quarter of CEO Morikawa's shareholdings and what appears to be the majority of the position held by Wada Shigefumi. The greenshoe of 293k shares brings the total deal to 2.25mm shares…

On February 13th, TSE2-listed smallcap (JPY 16.7bn market cap) accounting/planning/management software purveyor (software named DivaSystem) Avant Corp (3836 JP) announced its Q2 earnings, a reassignment from the TSE2 to the TSE1, and an Offering.The Secondary Offering of 1.956mm shares is a selldown of about one-quarter of CEO Morikawa's shareholdings and what appears to be the majority of the position held by Wada Shigefumi. The greenshoe of 293k shares brings the total deal to 2.25mm shares…

Japan

Fukui Computer Holdings Inc. develops and sells construction and engineering CAD(Computer-Aided Design) software.  The Company also provides maintenance services for CAD software and hardware.

NIPPON SYSTEMWARE CO., LTD. develops business application and network control software.  The Company also develops devices such as LSI (Large Scale Integration) for network equipment.  Nippon Systemware installs and provides maintenance services for Network system and also sells network equipment.

m-up holdings Inc provides entertainment content services for cell phones and personal computers.  The company also offers E-commerce services to sell apparel products, artist goods and music CDs.

Broadleaf Co., Ltd. provides a variety of IT services including business software development, sales as well as technical support. The company's productivity software targets automobile, mobile phone retail stores, and travel agencies.

MTI Ltd. provides mobile telecommunication services including voice mail services and text content services for mobile phones. MTI distributes contents such as musical contents and information contents.

SRA Holdings, Inc. builds and maintains networks using infrastructural technology and develops business application software.  The Company also provides network system services and consulting services.

Alpha Systems Inc. is an independent software development Company.  The Company mainly develops software for various type of communication systems.  Alpha Systems also constructs and operates clients' communication network systems. The Company's customers include Fujitsu and the NTT Group.

Fixstars Corporation provides software products and computer programming services. The Company was founded in 2002.

PCA CORPORATION is an independent software developer.  The Company develops packaged business software for accounting, payroll calculation, and sales and inventory management.

OPTIM CORPORATION develops and licenses infrastructure and security software for electronic devices such as computers, smartphones and eBooks. The Company also provides services and solution in Cloud Device management, remote management support and consumer device management.

Sasken Communication Technologies Ltd. is an embedded telecom solutions company that helps businesses across the telecom value chain accelerate product development life cycles. The Company works with terminal device manufacturers, network equipment manufacturers, semiconductor vendors and network operators on new product development and manufacturing.

Bejing Henghua Albert Technology Co,. Ltd. conducts software services, software sales, technical services and hardware sales. The company's main products include resource management platform (FRP), the graphics resource platform (GRP) and enterprise information integration services platform (EISP).

Park City Group, Inc. provides software and consulting services for business productivity.  The Company provides its ActionManager family of software products to companies in the retail and hospitality industries around the world.

G Neptune Bhd is an investment holding company that provides innovative proprietary IT solutions for the textile and apparel industry in Malaysia and Asia.

Neowiz offers online games application services.  The company offers variety types of online games such as action and sports games.

Webzen Inc. develops and markets online game software and distributes it through Internet.  The Company also provides game web site so that users can register, access, and play.  Webzen's products include Mu, an online game software.

Com2uS Corporation develops and markets game software based on digital convergence contents for internet mobile application.  The Company provides its products to domestic and overseas markets such as Asia, Europe, and North America.

Hancom Inc. specializes in developing, publishing, and marketing Korean word (Hangul) processing software.  The Company also produces office software, such as spreadsheet and presentation tools.  Haansoft also provides Internet portal services, including free homepage, free e-mail, free download, instant messaging, and chatting services.

Brogent Technologies Inc. provides software development services. The Company offers software-based solutions including user interfaces, and multimedia applications for Internet, telecommunication, consumer electronics and entertainment applications. Brogent develops and implements multimedia into devices such as smart phones, digital cameras, and digital music players.

American Software, Inc. provides demand-driven supply chain management and enterprise software solutions. The Company offers a software and services that brings business value to enterprises by supporting their operations over intranets, extranets, and servers. American Software serves clients worldwide.

Avant Corp develops computer applications for business solution. The Company sells accounting, planning, and management software. Diva also provides consulting, training, and maintenance services.

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Avant Corp (3836 JP)

Avant Group Corporation (TSE:3836)

Avant was founded in 1997 by the current CEO Tetsuji Morikawa and is a Japanese holding company of financial and non-financial software

Hurdle Rate

Avant (3836 JP) II: TSE1 Promotion and TOPIX Inclusion

TSE2-listed consolidated accounting software suite/services provider Avant Corp (3836 JP) announced its Q2 earnings, a reassignment from the TSE2...

Travis Lundy

Avant (3836 JP) I: The Offering

On February 13th, TSE2-listed smallcap (JPY 16.7bn market cap) accounting/planning/management software purveyor (software named DivaSystem) Avant...

Travis Lundy

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