Japan/Asia Long-Short, LightStream Research

Mio Kato

Japan/Asia Long-Short

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Bottom-Up

<ul>
<li>Sony posted a strong quarter on the back of resilient margins in gaming and stellar performance in the pictures segment. </li>
<li>Guidance was raised to ¥1.2trn above the top of consensus at ¥1.185trn but results will likely be around ¥1.3trn, a little below the ¥1.37trn we called in early 2021. </li>
<li>Next year should see further growth and we expect firm performance going forward.</li>
</ul>


Sony posted a strong quarter on the back of resilient margins in gaming and stellar performance in the pictures segment. 
Guidance was raised to ¥1.2trn above the top of consensus at ¥1.185trn but results will likely be around ¥1.3trn, a little below the ¥1.37trn we called in early 2021. 
Next year should see further growth and we expect firm performance going forward.


Chart based progressive global trading strategies, Chart Partners

Thomas Schroeder

Chart based progressive global trading strategies

Chart Partners

Chart Partners objective is to discover medium-term cycle turns and profit opportunities before they unfold, within structural trends while preserving capital with clear degrees of risk. We have real return ideas. 

Markets are dynamic and trading systems must reflect this. It is crucial to determine underlying correlations and lead-lag relationships within global markets and the impact on linked instruments. Our weekly Chartonics product gives you short-term trading strategies that can be applied within the medium and longer term macro trends that are mapped out in our strategy updates. 

Our methodology fuses global market variables and isolates drivers in trends. We specialize in FX, index trade in NY and Asia with a focus on Asian stocks. 

Technical Analysis

<ul>
<li>Sony is due for a tactical rise, stall and minor new low after completing a full count rise at 15,700. Trendline support break and gap resistance will attract sellers. </li>
<li>RSI bear divergence stands out. 12k tactical buy zone with 14k sell area. Ideal C wave buy zone lies at 10,500 support or within this range.</li>
<li>Sony remains an attractive macro bull play but has some backfill risk to iron out toward higher conviction long support.</li>
</ul>


Sony is due for a tactical rise, stall and minor new low after completing a full count rise at 15,700. Trendline support break and gap resistance will attract sellers. 
RSI bear divergence stands out. 12k tactical buy zone with 14k sell area. Ideal C wave buy zone lies at 10,500 support or within this range.
Sony remains an attractive macro bull play but has some backfill risk to iron out toward higher conviction long support.


Sony Tactical Long with Sell Overhang to Re Set at High Conviction Support

<ul>
<li>Sony has not taken long to respond to Microsoft’s purchase of Activision Blizzard. </li>
<li>It is being reported that Sony will acquire Bungie, original developer of the Halo franchise as well as Destiny for $3.6bn.</li>
<li>The cost effectiveness of this move stands in stark contrast to Microsoft’s acquisition and is significantly more targeted in its apparent goals, as usual.</li>
</ul>


Sony has not taken long to respond to Microsoft’s purchase of Activision Blizzard. 
It is being reported that Sony will acquire Bungie, original developer of the Halo franchise as well as Destiny for $3.6bn.
The cost effectiveness of this move stands in stark contrast to Microsoft’s acquisition and is significantly more targeted in its apparent goals, as usual.


<ul>
<li>Following its 12.8% fall last Wednesday Sony is now getting hit for 7.7% today thanks to Jay Powell. </li>
<li>This is an excellent opportunity to resize positions in our view as the long-term outlook remains excellent. </li>
<li>We had been worried about potential volatility due to the name becoming consensus but since that has been realised we are back to being uber bulls here.</li>
</ul>


Following its 12.8% fall last Wednesday Sony is now getting hit for 7.7% today thanks to Jay Powell. 
This is an excellent opportunity to resize positions in our view as the long-term outlook remains excellent. 
We had been worried about potential volatility due to the name becoming consensus but since that has been realised we are back to being uber bulls here.


Event-Driven

<ul>
<li>A positive earnings surprise for Fast Retailing and Microsoft’s acquisition of Activision Blizzard hitting Sony have hurt the performance of our skew trade. </li>
<li>Despite this, the dramatic fall in the Nikkei means it is now outperforming the Nikkei since we first suggested the trade. </li>
<li>Looking forward we expect recent volatility to be absorbed over time and we retain conviction on our picks.</li>
</ul>


A positive earnings surprise for Fast Retailing and Microsoft’s acquisition of Activision Blizzard hitting Sony have hurt the performance of our skew trade. 
Despite this, the dramatic fall in the Nikkei means it is now outperforming the Nikkei since we first suggested the trade. 
Looking forward we expect recent volatility to be absorbed over time and we retain conviction on our picks.


TOPIX-Nikkei Skew Trade Hit by Sony and Fast Retailing but Outperforming Nikkei

Japan

Sony Group Corporation manufactures and distributes electronics products and provides related solutions. The Company produces televisions, cameras, mobiles, audio and video products. game equipment, and more. Sony Group also engages in game production,  movie production, music production, and other businesses.

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Sony Corp (SONY US)

Sony – Guidance Upgrade

Sony posted a strong quarter on the back of resilient margins in gaming and stellar performance in pictures. Next year should see further growth...

Mio Kato

Sony Tactical Long with Sell Overhang to Re Set at High Conviction Support

Sony is due for a tactical rise, stall and minor new low after completing a full count rise at 15,700. Trendline support break and gap resistance...

Thomas Schroeder

Sony – The Bungie Counterpunch

It is being reported that Sony will acquire Bungie for $3.6bn. The cost effectiveness of this move stands in stark contrast to Microsoft’s...

Mio Kato

Sony – Great Opportunity

We had been worried about potential volatility for Sony due to the name becoming consensus but since that has been realised we are back to being...

Mio Kato

TOPIX-Nikkei Skew Trade Hit by Sony and Fast Retailing but Outperforming Nikkei

Volatility in Fast Retailing and Sony have hurt the performance of our skew trade but looking forward we expect recent volatility to be absorbed...

Mio Kato

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