Focus on Smaller Cap Value Names, Altay Capital

Altay Capital

Focus on Smaller Cap Value Names

Long time value investor. Long/Short portfolio that’s always net long (between 30-80%). I have extensive experience in the video game industry as I founded a leading media company in the space, which I have since exited after an acquisition. Gaming companies only make up ~15% of my portfolio, but its a sector where I believe I have an edge. A newsletter about value investing! Mostly focus on smaller cap value names that aren't widely covered.

Equity Bottom-Up

<ul><li>Cover Corp, a leading talent management company in the rapidly growing VTuber industry.</li><li>They’re considered the most prestigious agency and should attract the best talent.</li><li>Superior Underlying Performance Metrics: Cover boasts superior key performance indicators (KPIs) compared to their main competitor Anycolor, including higher engagement metrics like subscribers, hours watched, and viewership.</li></ul>

Cover Corp, a leading talent management company in the rapidly growing VTuber industry.They’re considered the most prestigious agency and should attract the best talent.Superior Underlying Performance Metrics: Cover boasts superior key performance indicators (KPIs) compared to their main competitor Anycolor, including higher engagement metrics like subscribers, hours watched, and viewership.

Cover Corp (TYO 5253) - High Growth Opportunity in the Expanding VTuber Sector

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>Nine months ago I first wrote on <a href="https://www.smartkarma.com/entities/anycolor-inc" target="_blank" data-smartkarma-citation="entities:36618:1" rel="noopener">Anycolor (5032 JP)</a>. I thought the guidance growth pattern and valuations remarkable. Results handily beat guidance. Now we're in Year 2 of guidance.</li>
<li>After the first full year listed, FY2024 guidance was for +30% in revenue to ¥33bn, and +35% growth in OP. For Q1, reported yesterday, actual results were +51% and +91%.</li>
<li>The stock is popping this AM, but it is still cheap vs growth rates and margins. There are, notably, still "context issues" here. They merit some consideration (and investigation).</li>
</ul>


Nine months ago I first wrote on Anycolor (5032 JP). I thought the guidance growth pattern and valuations remarkable. Results handily beat guidance. Now we're in Year 2 of guidance.
After the first full year listed, FY2024 guidance was for +30% in revenue to ¥33bn, and +35% growth in OP. For Q1, reported yesterday, actual results were +51% and +91%.
The stock is popping this AM, but it is still cheap vs growth rates and margins. There are, notably, still "context issues" here. They merit some consideration (and investigation).


Anycolor (5032) - Great Quarter Guys! Again. Context Issues. Still.

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/anycolor-inc" target="_blank" data-smartkarma-citation="entities:36618:1" rel="noopener">Anycolor (5032 JP)</a> IPOed a year ago, rose several-fold, saw the underwriting broker offer a huge target price, then it fell. There was an offering. <em>And then the murders began.*</em>
</li>
<li>The offering in January, discussed <a href="https://www.smartkarma.com/insights/anycolor-5032-overseas-offering-pre-ipo-vcs-selling-this-high-growth-name" target="_blank" rel="noopener">here</a>, created overhang, and the stock fell sharply in the next 6 weeks. Blowout earnings came in mid-March. Along with a TSE Prime transfer application.</li>
<li>Now we have the Prime promotion on 8 June, which leads to a TOPIX inclusion on 28 July. </li>
</ul>



Anycolor (5032 JP) IPOed a year ago, rose several-fold, saw the underwriting broker offer a huge target price, then it fell. There was an offering. And then the murders began.*

The offering in January, discussed here, created overhang, and the stock fell sharply in the next 6 weeks. Blowout earnings came in mid-March. Along with a TSE Prime transfer application.
Now we have the Prime promotion on 8 June, which leads to a TOPIX inclusion on 28 July. 


Anycolor (5032 JP) - Moving to Prime Next Week, TOPIX Inclusion Next Month

Japan

Systena Corporation develops firmware for mobile telecommunications. The Company also develops web application software for network systems, computer game software, and systems for financial firms.  Systena provides network consulting services as well.

PKSHA Technology Inc. provides software development services. The Company develops and manages image recognition, universal dialogue, and customer behavior forecast software. PKSHA Technology serves clients in Japan.

freee K.K. develops software products. The Company produces cloud based accounting softwares, automatic online accounting systems, and other products. freee provides its services throughout Japan.

GungHo Online Entertainment, Inc. develops and distributes Internet games. The Company also develops applications for smartphones.

Cybozu, Inc. develops and markets Internet and Intranet application software for businesses.  The Company's main products include Cybozu Office, a web-based groupware, which is collaboration software for information sharing and communication among workgroups and companies.

Digital Arts Inc. develops Internet filtering software for business, private, and educational use.  Its product protects users and network from harmful Internet contents and prevents inappropriate usages.

COLOPL, Inc. provides game platform and applications for smart phones.

COMPUTER ENGINEERING & CONSULTING LTD. is an independent computer software development company.  The Company also installs, manages, and provides maintenance services for network systems.  Computer Engineering & Consulting also develops and sells packaged software.

I'LL INC provides system integration and solution services.  The Company's services include developing, customizing and networking.  I'LL INC also offers consulting services regarding internet environment security.

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.

NetDragon Websoft, Inc. develops online internet games. The Company offers tracks player behaviour and purchasing patterns to design games that cater to their customers' tastes. NetDragon Websoft operates worldwide.

Beijing SuperMap Software Co., Ltd. develops and sells GIS (Geographic Information System) softwares.  The Company also provides system support services for GIS softwares.

Beijing SuperMap Software Co., Ltd. (300036 CH)

Objective Corporation Limited manufactures knowledge management application software.  The Company's products allow users to access and manage word processing documents, spreadsheets, web page content and e-mails.  Objective also develops branded software which provides template-based conversion of documents to HTML.

Shenzhen Infogem Technologies Co., Ltd. provides digital software and technical support to banks. The Company provides bank seal recognition system, computer's software and hardware, and bank account management system.

Shenzhen InfoGem Technologies (300085 CH)

AurionPro Solutions Limited provides software solutions and offshore information technology outsourcing services to banking, financial services, and technology companies.

Wemade Co., Ltd. develops and markets on-line games that enable users to play over the internet.  The Company also provides computer game software and mobile games for cellular phone users.

Toyou Feiji Electronics Company Limited researches, develops and applies data storage and protection, disaster recovery and related technologies. The Company's main products include disk storage systems, storage management softwares, data storage solutions, and technical services.

Qiming Information Technology Co., Ltd. develops, manufactures, sells and supports software products. The company's main software products are used in auto industry management, manufacturing and individual auto drivers.

Beijing Orient National Communication Science & Technology Company Limited develops and sells enterprise business system solution and provides related technical services. The Company's main product is data management software.

Beijing VRV Software Corporation Limited develops, manufactures and sells information security software products, and provides technical services. The Company's main products include terminal security management products, data security management products, and security management platforms.

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Cover Corp (5253 JP)

Cover Corp (TYO 5253) - High Growth Opportunity in the Expanding VTuber Sector

Cover Corp, a leading talent management company in the rapidly growing VTuber industry. They’re considered the most prestigious agency and should...

Altay Capital

Anycolor (5032) - Great Quarter Guys! Again. Context Issues. Still.

Anycolor had another great quarter. Revenues flying, OP up 90%yoy. Net Profit up. OPMs and NPMs at a record. And still limited coverage and take-up...

Travis Lundy

Anycolor (5032 JP) - Moving to Prime Next Week, TOPIX Inclusion Next Month

Anycolor (5032 JP) is moving to TSE Prime, and therefore to TOPIX. Big news, but not unexpected. Perhaps more importantly, earnings are next week.

Travis Lundy

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