Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/adways-inc" target="_blank" data-smartkarma-citation="entities:14696:1" rel="noopener">Adways Inc (2489 JP)</a> is an ad agency, ad platform, marketing platform, and a variety of sub-platforms serving certain mobile, PC, marketing, and app development niches. </li>
<li>They released earnings last Friday, but today released other - follow-on information. </li>
<li>Included was a buyback - up to 5.7mm shares (13.57% of shares out) for up to ¥2bn (9% of mktcap) - over the next 5.5 months. Seems big. Look closer.</li>
</ul>



Adways Inc (2489 JP) is an ad agency, ad platform, marketing platform, and a variety of sub-platforms serving certain mobile, PC, marketing, and app development niches. 
They released earnings last Friday, but today released other - follow-on information. 
Included was a buyback - up to 5.7mm shares (13.57% of shares out) for up to ¥2bn (9% of mktcap) - over the next 5.5 months. Seems big. Look closer.


Adways (2489 JP) - Really, Really Big News for a SmallCap

<ul>
<li>On 11 November 2021, mobile ad platform provider <a href="https://www.smartkarma.com/entities/adways-inc" target="_blank" data-smartkarma-citation="entities:14696:1" rel="noopener">Adways Inc (2489 JP)</a><a href="https://ir.adways.net/irnews/20211111_222D3s.pdf" target="_blank" rel="noopener">announced</a> a placement of treasury shares, and a small new share issuance to Hakuhodo DY totalling 3.6mm shares.</li>
<li>On 1 December 2021, the company announced a buyback of up to 6 million shares between here and May 2022.</li>
<li>That sets up an interesting offset of accretion and squeeze. And details matter.</li>
</ul>


On 11 November 2021, mobile ad platform provider Adways Inc (2489 JP)announced a placement of treasury shares, and a small new share issuance to Hakuhodo DY totalling 3.6mm shares.
On 1 December 2021, the company announced a buyback of up to 6 million shares between here and May 2022.
That sets up an interesting offset of accretion and squeeze. And details matter.


Adways (2489 JP) - A Dilutive Placement Before and a New Accretive Bigly Buyback

Japanese news, equities, and trends, Teddy Letter

Teddy Okuyama

Japanese news, equities, and trends

Teddy Letter

We aim to fill the information gap on the Japan market, especially on small cap companies with little or no analyst coverage. While brokerages and sponsored research provide useful information, there is still an information divide between domestic and foreign investors. We aim to fill that gap by providing access to insights that are lost in translation.

Equity Bottom-Up

This is installment #6 of my 200-day challenge to do write-ups on 200 Japanese small caps, at the end of which I plan to publish a book (tentative title: Japan Small Caps Handbook). I’m writing these unedited versions in a stream of consciousness style, and they will be refined before being finalized later on.

This is installment #6 of my 200-day challenge to do write-ups on 200 Japanese small caps, at the end of which I plan to publish a book (tentative title: Japan Small Caps Handbook). I’m writing these unedited versions in a stream of consciousness style, and they will be refined before being finalized later on.

On 10 February 2021, digital affiliate advertisement services and mobile/ad content development firm <a href="https://www.smartkarma.com/entities/adways-inc" target="_blank" data-smartkarma-citation="entities:14696:1" rel="noopener">Adways Inc (2489 JP)</a> announced its Q3 earnings <a href="https://ir.adways.net/irnews/20210210_183b2g.pdf" target="_blank" rel="noopener">results</a> (and two days later the Q3 <a href="https://ir.adways.net/irnews/20210212_1872RM.pdf" target="_blank" rel="noopener">yuho</a>), with a <a href="https://ir.adways.net/irnews/20210210_185SQr.pdf" target="_blank" rel="noopener">presentation</a>, and an <a href="https://ir.adways.net/irnews/20210210_182gSN.pdf" target="_blank" rel="noopener">upward revision to their full year forecast</a> and dividend.Revenues were set to be 6.4% ahead of the previous forecast, OP 49.6% ahead (and up 520%yoy), and Net Income 71% ahead of the last forecast (+466%yoy) which was made 6 November, which itself was a barn-burner.Those were big numbers already and these are big forecast jumps on top. The shares fell 11.2% in the next two days because the indications for Q4 were less good than expected. The expectation is for a higher revenue but lower quality mix, lower margins, and a small net loss at the net income level. This strikes me as lowballing Q4, but it is tough to know.Today, after the shares rebounded 2.8%, the company announced that the Director in charge of Business Development Yamada-san would become the new CEO in July, and the current CEO (and founder and major shareholder) Okamura-san would become Chairman. Founder Okamura-san retiring from day-to-day CEO-ship is big. He is not ancient by any means. He turns 41 in April. Yamada-san - currently the youngest board member - turns 36 next month. <section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/189/091/original/Screenshot+2021-02-16+at+7.46.59+PM.png?1613476065" class="editor-image img-responsive" data-smartkarma-image-id="189091"></figure></section>They also announced a BIG Buyback. The buyback is for up to 7.5mm shares (18.02% of shares out less treasury) spending up to JPY 3 billion. In actuality, it will likely come in a fair bit smaller than 7.5mm shares. Right now, it is aiming at 4.5mm. But that's still a lot. And there is another positive surprise lying in wait in April. More below the fold.

On 10 February 2021, digital affiliate advertisement services and mobile/ad content development firm Adways Inc (2489 JP) announced its Q3 earnings results (and two days later the Q3 yuho), with a presentation, and an upward revision to their full year forecast and dividend.Revenues were set to be 6.4% ahead of the previous forecast, OP 49.6% ahead (and up 520%yoy), and Net Income 71% ahead of the last forecast (+466%yoy) which was made 6 November, which itself was a barn-burner.Those were big numbers already and these are big forecast jumps on top. The shares fell 11.2% in the next two days because the indications for Q4 were less good than expected. The expectation is for a higher revenue but lower quality mix, lower margins, and a small net loss at the net income level. This strikes me as lowballing Q4, but it is tough to know.Today, after the shares rebounded 2.8%, the company announced that the Director in charge of Business Development Yamada-san would become the new CEO in July, and the current CEO (and founder and major shareholder) Okamura-san would become Chairman. Founder Okamura-san retiring from day-to-day CEO-ship is big. He is not ancient by any means. He turns 41 in April. Yamada-san - currently the youngest board member - turns 36 next month. They also announced a BIG Buyback. The buyback is for up to 7.5mm shares (18.02% of shares out less treasury) spending up to JPY 3 billion. In actuality, it will likely come in a fair bit smaller than 7.5mm shares. Right now, it is aiming at 4.5mm. But that's still a lot. And there is another positive surprise lying in wait in April. More below the fold.

Pan-Asia Index Flows & Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Pan-Asia Index Flows & Special Situations

In the month of January 2021, one of the most anticipated TOPIX Inclusion candidates, <a href="https://www.smartkarma.com/entities/toshiba-corp" target="_blank" data-smartkarma-citation="entities:637:1" rel="noopener">Toshiba Corp (6502 JP)</a> announced its move to TSE1 triggering what could potentially be one of the largest TOPIX Inclusion events in recent memory. The stock could see its TOPIX Inclusion take place at the end of February, along with <a href="https://www.smartkarma.com/entities/sansan-inc" target="_blank" data-smartkarma-citation="entities:28112:1" rel="noopener">Sansan Inc (4443 JP)</a> - another larger-than-usual candidate - and two other super-high-impact names <a href="https://www.smartkarma.com/entities/bull-dog-sauce-co-ltd" target="_blank" data-smartkarma-citation="entities:16235:1" rel="noopener">Bull Dog Sauce (2804 JP)</a> and <a href="https://www.smartkarma.com/entities/alps-logistics-co-ltd" target="_blank" data-smartkarma-citation="entities:3935:1" rel="noopener">Alps Logistics (9055 JP)</a>. There is plenty to look forward to. In this insight, I have provided performance updates for 6 "Live" event stocks (including the names mentioned above) which are expected to have Inclusion Events at the end of February 2021 and 14 "Post" event stocks that completed their Inclusion Events at the end of December 2020 and January 2021 (on 28 January 2021).Furthermore, I have also highlighted some interesting Pre-event situations involving stocks that are likely to become TSE1-promotion candidates in the near future.

In the month of January 2021, one of the most anticipated TOPIX Inclusion candidates, Toshiba Corp (6502 JP) announced its move to TSE1 triggering what could potentially be one of the largest TOPIX Inclusion events in recent memory. The stock could see its TOPIX Inclusion take place at the end of February, along with Sansan Inc (4443 JP) - another larger-than-usual candidate - and two other super-high-impact names Bull Dog Sauce (2804 JP) and Alps Logistics (9055 JP). There is plenty to look forward to. In this insight, I have provided performance updates for 6 "Live" event stocks (including the names mentioned above) which are expected to have Inclusion Events at the end of February 2021 and 14 "Post" event stocks that completed their Inclusion Events at the end of December 2020 and January 2021 (on 28 January 2021).Furthermore, I have also highlighted some interesting Pre-event situations involving stocks that are likely to become TSE1-promotion candidates in the near future. 

Japan

Adways Inc. offers Internet marketing solutions through affiliate program services.  The Company provides services through PCs and mobile phones.

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Adways Inc (2489 JP)

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