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

Sony’s just concluded PS5 showcase finally revealed pricing at $500, with the digital version coming in at $400. These prices have been speculated on for some time and are not a real surprise though we did believe there was a possibility Sony would have tried to undercut Microsoft slightly. There were some small surprises in terms of exclusivity and the new PlayStation Plus Collection, however, and we discuss these below.

Sony’s just concluded PS5 showcase finally revealed pricing at $500, with the digital version coming in at $400. These prices have been speculated on for some time and are not a real surprise though we did believe there was a possibility Sony would have tried to undercut Microsoft slightly. There were some small surprises in terms of exclusivity and the new PlayStation Plus Collection, however, and we discuss these below.

Sony – What the PS5 Showcase Says About Gaming Ecosystems

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)

The COVID-19 pandemic has caused profound business shifts, resulting in near ruin for some sectors while strengthening others.  This Smartkarma Insight explores this phenomenon and shows how it relates to semiconductors.

The COVID-19 pandemic has caused profound business shifts, resulting in near ruin for some sectors while strengthening others.  This Smartkarma Insight explores this phenomenon and shows how it relates to semiconductors.

So apparently after Sony decided to go with “RGB wireless router stuck on blue” as its design theme,<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/157/950/original/image_49464720921599621844778.jpg?1599621844" class="editor-image img-responsive" data-smartkarma-image-id="157950"></figure>Microsoft decided to one-up them with a full-retro hybrid radio-iStove.<table class="table table-striped"><tbody>
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<td style="text-align: center; width: 50%;">Xbox Series S     </td>
<td style="text-align: center; width: 50%;">1940s Tube Radio / Portable iStove</td>
</tr>
<tr>
<td style="width: 50%;"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/157/951/original/image_75811622431599621844778.jpg?1599621845" class="editor-image img-responsive" data-smartkarma-image-id="157951"></figure></td>
<td style="width: 50%;"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/157/949/original/image_68988860241599621844778.jpg?1599621844" class="editor-image img-responsive" data-smartkarma-image-id="157949"></figure></td>
</tr>
</tbody></table>The price of the system was initially leaked and then confirmed as $300 which is aggressive pricing and could help Microsoft… but we view their strategy as flawed and, in some senses, unlucky due to what Sony and Nintendo are doing. We explain why below.

So apparently after Sony decided to go with “RGB wireless router stuck on blue” as its design theme,Microsoft decided to one-up them with a full-retro hybrid radio-iStove.

Xbox Series S     
1940s Tube Radio / Portable iStove





The price of the system was initially leaked and then confirmed as $300 which is aggressive pricing and could help Microsoft… but we view their strategy as flawed and, in some senses, unlucky due to what Sony and Nintendo are doing. We explain why below.

The Xbox Series S – Minimalism Done Wrong

Japan Specialist

Mark Chadwick

<div>
A Nikkei report from 18 August announced that Third Point had sold most of its position in Sony in the second quarter. That caused a little bit of consternation in the market with the share price shedding 500 yen, or 5%. That may not sound a lot, but it is equivalent to wiping out Sony’s entire movie division. Sony (and Third Point for that matter) should have gotten a more apologetic mea culpa than the follow up article a week later, explaining that the activist had only sold a few ADRs...Oops.     Nevertheless, the gut reaction from the stock market suggests that investors share Third Point’s desire to see “A stronger Sony.”  Given that the share price of Sony has surged about 80% since April last year and is approaching the fund’s original target price, investors should be watchful for signs that the activist is heading for the exit. 
</div>
<div>
There are three key questions: 
</div>
<div>
1) Has Sony’s business outlook deteriorated to such an extent that the intrinsic value has declined? 
</div>
<div>
2) Has Third Point’s transformation thesis been realized? or 
</div>
<div>
3) Has Sony’s stock reached fair value and has the conglomerate discount vanished? 
</div>


A Nikkei report from 18 August announced that Third Point had sold most of its position in Sony in the second quarter. That caused a little bit of consternation in the market with the share price shedding 500 yen, or 5%. That may not sound a lot, but it is equivalent to wiping out Sony’s entire movie division. Sony (and Third Point for that matter) should have gotten a more apologetic mea culpa than the follow up article a week later, explaining that the activist had only sold a few ADRs...Oops.     Nevertheless, the gut reaction from the stock market suggests that investors share Third Point’s desire to see “A stronger Sony.”  Given that the share price of Sony has surged about 80% since April last year and is approaching the fund’s original target price, investors should be watchful for signs that the activist is heading for the exit. 


There are three key questions: 


1) Has Sony’s business outlook deteriorated to such an extent that the intrinsic value has declined? 


2) Has Third Point’s transformation thesis been realized? or 


3) Has Sony’s stock reached fair value and has the conglomerate discount vanished? 


Recent announcements have indicated that the semiconductor market is migrating from a period of strength from an inventory build-up to softer demand stemming from digestion of that inventory.  This Insight examines that trend and its impact on stock prices.

Recent announcements have indicated that the semiconductor market is migrating from a period of strength from an inventory build-up to softer demand stemming from digestion of that inventory.  This Insight examines that trend and its impact on stock prices.

Semis Moving from Inventory Build to Inventory Digestion

Japan

Sony Corporation manufactures audio, home video game consoles, communications, key device and information technology products for the consumer and professional markets.  The Company's other businesses include music, pictures, computer entertainment, and online businesses.

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Sony Corp (6758 JP)

Sony – What the PS5 Showcase Says About Gaming Ecosystems

Sony’s just concluded PS5 showcase finally revealed pricing at $500, with the digital version coming in at $400. These prices have been speculated...

Mio Kato

The COVID-19 Pandemic and Semiconductors

The COVID-19 pandemic has caused profound business shifts,

Jim Handy

The Xbox Series S – Minimalism Done Wrong

So apparently after Sony decided to go with “RGB wireless router stuck on blue” as its design theme, Microsoft decided to one up them with a...

Mio Kato

A Stronger Sony (6758) - Still?

A "Stronger Sony". The core earnings outlook is even stronger; the transformation thesis intact; and the SOTP discount is as wide as ever

Mark Chadwick

Semis Moving from Inventory Build to Inventory Digestion

Recent announcements have indicated that the semiconductor market is migrating from a period of strength from an inventory build-up to softer...

Jim Handy

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