Director, Pearl Hill Advisors

Nicholas Tanner

Director

Pearl Hill Advisors

Equity Bottom-Up

After two downward revisions last year, the company is determined to avoid a repeat. This year’s operating forecast of Y5.5bn is very conservative. They assume flat new car sales, conservative in light of the MMC scandal and 10% fall last year. They assume still high advertising and promotional costs but they will fall if new car sales are up. Also retail sales (as opposed to auction sales) will be up, costs of promoting its two new businesses will fall by Y1bn and losses in Australia should be…

After two downward revisions last year, the company is determined to avoid a repeat. This year’s operating forecast of Y5.5bn is very conservative. They assume flat new car sales, conservative in light of the MMC scandal and 10% fall last year. They assume still high advertising and promotional costs but they will fall if new car sales are up. Also retail sales (as opposed to auction sales) will be up, costs of promoting its two new businesses will fall by Y1bn and losses in Australia should be…

Conservative Forecasts, Sell off Overdone, Now Is the Time to Buy

Whilst a longer term investment here must be questioned, for now we would buy the shares. They are very depressed given a poor new car market and the company’s recent downward revision for this year. A modest recovery in the new car market, forecast by many analysts, would result in a decent bounce in profits putting the shares on close to 10x (assuming a net of Y5bn for next year). This would result in a re-rating of the shares in our view and for this reason alone, we would buy the shares now.…

Whilst a longer term investment here must be questioned, for now we would buy the shares. They are very depressed given a poor new car market and the company’s recent downward revision for this year. A modest recovery in the new car market, forecast by many analysts, would result in a decent bounce in profits putting the shares on close to 10x (assuming a net of Y5bn for next year). This would result in a re-rating of the shares in our view and for this reason alone, we would buy the shares now.…

Technically Very Oversold and 2/18 Profits to Bounce.

Japan

GULLIVER INTERNATIONAL CO., LTD. operates a chain of stores which specialize in purchasing used cars.  The Company also operates a retail store chain known as Dolphie Net, via satellite.  Gulliver operates its own stores and also franchise stores nationwide.

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IDOM Inc (7599 JP)

Conservative Forecasts, Sell off Overdone, Now Is the Time to Buy

After two downward revisions last year, the company is determined to avoid a repeat. This year’s operating forecast of Y5.5bn is very conservative....

Pearl Hill Advisors

Technically Very Oversold and 2/18 Profits to Bounce.

Whilst a longer term investment here must be questioned, for now we would buy the shares. They are very depressed given a poor new car market and...

Pearl Hill Advisors

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