Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Toshiba is trading at a 12-13% annualised return on the arb when using the expected Tender Offer Start Date proposed in the Takeover Announcement on 23 March 2023.</li>
<li>On Day 1-2 post-announcement, Toshiba traded at an 11-13% annualised spread. Since the announcement, a 12-name Peer Basket is up 11+% meaning Toshiba back end risk has shrunk.</li>
<li>Forward consensus EPS ratios have fallen, in part due to the shift forward one fiscal year by comps. We'll see where those lie in a week when earnings come.</li>
</ul>


Toshiba is trading at a 12-13% annualised return on the arb when using the expected Tender Offer Start Date proposed in the Takeover Announcement on 23 March 2023.
On Day 1-2 post-announcement, Toshiba traded at an 11-13% annualised spread. Since the announcement, a 12-name Peer Basket is up 11+% meaning Toshiba back end risk has shrunk.
Forward consensus EPS ratios have fallen, in part due to the shift forward one fiscal year by comps. We'll see where those lie in a week when earnings come.


<ul>
<li>Fujitsu earnings are out. Forecasts are in, lighter than consensus. </li>
<li>But there is a buyback. Looking at the way last year's was executed is not that informative but it may be useful. </li>
<li>This one is big enough to matter but not big enough to get excited about until we get confirmation. </li>
</ul>


Fujitsu earnings are out. Forecasts are in, lighter than consensus. 
But there is a buyback. Looking at the way last year's was executed is not that informative but it may be useful. 
This one is big enough to matter but not big enough to get excited about until we get confirmation. 


BIG Fujitsu (6702 JP) Buyback - It's a Lot, but Not, but Still Big

Semiconductors, Memory and SSDs Specialist, Objective Analysis

Jim Handy

Semiconductors, Memory and SSDs Specialist

Objective Analysis

Objective Analysis offers third-party independent market research and data for the semiconductor industry and investors in the semiconductor industry.

Semiconductors, Memory and SSDs

Thematic (Sector/Industry)

<ul>
<li>Semiconductor revenues remain in a decline, although that decline has slowed.</li>
<li>Prices appear to have reached cost.  They should follow cost declines until a shortage returns.</li>
<li>The timing of the next shortage is still in question.</li>
</ul>


Semiconductor revenues remain in a decline, although that decline has slowed.
Prices appear to have reached cost.  They should follow cost declines until a shortage returns.
The timing of the next shortage is still in question.


IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

<ul>
<li>
<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 a pre-conditional tender offer by Japan Industrial Partners (JIP), the preferred bidder at JPY4,620 per share, a 9.7% premium to the last close price.</li>
<li>The special committee opines that the offer is the best price that can be expected today, which sounds like we are recommending the offer as it is the only one.</li>
<li>The offer has several negatives: a 14% price reduction during the process, below the undisturbed price, below the mid-point IFA DCF range and no serious effort on Plan B. </li>
</ul>



Toshiba Corp (6502 JP) announced a pre-conditional tender offer by Japan Industrial Partners (JIP), the preferred bidder at JPY4,620 per share, a 9.7% premium to the last close price.
The special committee opines that the offer is the best price that can be expected today, which sounds like we are recommending the offer as it is the only one.
The offer has several negatives: a 14% price reduction during the process, below the undisturbed price, below the mid-point IFA DCF range and no serious effort on Plan B. 


Toshiba (6502 JP): JIP’s JPY4,620 Tender Offer, Now for the Really Hard Part

Japan Specialist

Mark Chadwick

<ul>
<li>OVERSEAS.  SPX Gains (barely) after a brutal week; Durable Goods Ex-Transport point to economic resilience;  Beta/Growth&gt; Value as Cyclicals rebound; JPM Quant Sees $50bn Selling if SPX breeches 3940</li>
<li>JAPAN. NKY Futs +0.4% vs Cash; USDJPY 136.2; BOJ Gov Designate Ueda says no change to Easing for now; Japan Post Massive X-Share $9bn sale of Sub shares; Auto Upgrades</li>
<li>NUGGETS NUGGET. Nidec's E-Axle Future may rest with the Europeans, not the Chinese !</li>
</ul>


OVERSEAS.  SPX Gains (barely) after a brutal week; Durable Goods Ex-Transport point to economic resilience;  Beta/Growth&gt; Value as Cyclicals rebound; JPM Quant Sees $50bn Selling if SPX breeches 3940
JAPAN. NKY Futs +0.4% vs Cash; USDJPY 136.2; BOJ Gov Designate Ueda says no change to Easing for now; Japan Post Massive X-Share $9bn sale of Sub shares; Auto Upgrades
NUGGETS NUGGET. Nidec's E-Axle Future may rest with the Europeans, not the Chinese !


Good Morning Japan |SPX Holds After Brutal Week; Solid Durable Goods; Japan Post $9bn X-Share Unwind

Japan

Fujitsu Ltd manufactures semiconductor, computer, and communication equipment. The Company provides comprehensive information technology, network and telecommunication solutions, and Internet services.

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Fujitsu Ltd (6702 JP)

Toshiba (6502) - Thinking About the Arb

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Arun George

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Toshiba (6502) - Thinking About the Arb

Toshiba has seen shares rise a bit since Day1 post-anncmt ~6 weeks ago, but Peers have risen further and the earnings shift on forward consensus is...

Travis Lundy

BIG Fujitsu (6702 JP) Buyback - It's a Lot, but Not, but Still Big

Fujitsu announced earnings, forecast, and a big buyback. It is big enough at 4.3% to matter. But an earnings drop is not great. How peers will fare...

Travis Lundy

No Signs of a Chip Recovery

Has the chip downturn ended? No. Is there any sign that it's going to end soon? Again, no. This Insight provides concrete data points to...

Jim Handy

Toshiba (6502 JP): JIP’s JPY4,620 Tender Offer, Now for the Really Hard Part

The shares will react positively initially. However, it should start drifting again once it becomes apparent that there is a considerable risk that...

Arun George

Good Morning Japan |SPX Holds After Brutal Week; Solid Durable Goods; Japan Post $9bn X-Share Unwind

US stocks hold on to gains after last week's sell off; In Japan, BOJ Gov Designate Ueda says no change to Easing for now; Japan Post Massive X...

Mark Chadwick