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 blew out 3Q numbers with ¥359bn in OP vs. consensus at ¥188bn and raised FY guidance to ¥940bn in OP, above consensus at ¥753bn, the consensus high at ¥805bn and even our ¥910bn estimate. It now looks to be on track to hit ¥1trn in OP with all segments firing.<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/186/540/original/image_43457873421612345914296.png?1612345914" class="editor-image img-responsive" data-smartkarma-image-id="186540"></figure>

Sony blew out 3Q numbers with ¥359bn in OP vs. consensus at ¥188bn and raised FY guidance to ¥940bn in OP, above consensus at ¥753bn, the consensus high at ¥805bn and even our ¥910bn estimate. It now looks to be on track to hit ¥1trn in OP with all segments firing.

Sony – 2021 High Conviction Call Posts a Blowout

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

<a href="https://www.smartkarma.com/entities/sony-corp" target="_blank" data-smartkarma-citation="entities:563:1" rel="noopener">Sony Corp (6758 JP)</a> displays good tactical upside to chisel out a minor new high but underlying warning signals stem from fading buy volumes and RSI divergence warning of an intermediate pullback cycle taking shape that will dominate price action in coming months.Pullback support well defined at trendline with time translation.

Sony Corp (6758 JP) displays good tactical upside to chisel out a minor new high but underlying warning signals stem from fading buy volumes and RSI divergence warning of an intermediate pullback cycle taking shape that will dominate price action in coming months.Pullback support well defined at trendline with time translation.

Global Special Situations & Strategy, SR Services Ltd

David Lepper

Global Special Situations & Strategy

SR Services Ltd

SR Services provides Strategic Knowledge and Solutions services for Family Offices and Corporate Business. 

We deliver this via advisory services, strategic planning, opportunity analysis/sourcing, as well as solution implementation. 

Whilst, we create intellectual discipline and operational leverage for your projects or daily activities, our ultimate objective is to empower whilst enhancing your decision making. 

Strategic Knowledge and Solutions

Cross Asset Strategy

Whilst Q4's list posted strong price performance it was a case that a rising tide floated most boats. As in the previous few quarters, we are on the watch for the risk of deteriorating credit metrics, but in particular during H1 2021. In Q1, the Altman Z score is at a market-cap-weighted 1.03 times, a significant decrease on the 1.52 in Q4. This deterioration needs to be monitored since earnings continue to be adjusted by analysts and their limited visibility of any bottoming. 25 stocks appear in our Q1 2021 screen, versus 15 in Q4 2020.

Whilst Q4's list posted strong price performance it was a case that a rising tide floated most boats. As in the previous few quarters, we are on the watch for the risk of deteriorating credit metrics, but in particular during H1 2021. In Q1, the Altman Z score is at a market-cap-weighted 1.03 times, a significant decrease on the 1.52 in Q4. This deterioration needs to be monitored since earnings continue to be adjusted by analysts and their limited visibility of any bottoming. 25 stocks appear in our Q1 2021 screen, versus 15 in Q4 2020.

Screening the Silk Road: Q1 2021 High Risk Names to Avoid

Japan Specialist

Mark Chadwick

<div>There has been growing awareness of the business case for inclusion and diversity (I&amp;D) in the workplace. In Japan, Prime Minister Suga has pledged continued government support for corporate governance reform and he would like to see more women and foreigners in key positions. While many companies cite I&amp;D as a source of competitive advantage and a key enabler of growth, few academic studies have been able to prove a direct link between I&amp;D and financial performance. Our analysis on Japan’s larger companies suggests the following: </div><div><ol style="list-style-type: decimal;" role="list" start="1"><li role="listitem" data-leveltext="%1." data-font="Calibri" data-listid="1" aria-setsize="-1" data-aria-posinset="1" data-aria-level="1">Most Japanese companies have very low levels of diversity. Although the participation of women on the boards of Japanese companies is expanding, those with higher levels of diversity are yet to see any improvement in financial metrics or stock performance.  </li></ol></div><div><ol style="list-style-type: decimal;" role="list" start="2"><li role="listitem" data-leveltext="%1." data-font="Calibri" data-listid="1" aria-setsize="-1" data-aria-posinset="2" data-aria-level="1">Our broad composite index of board entrenchment also bears little correlation with key metrics. However, boards that are younger on average do appear to be more effective, and are correlated with a broad range of operating metrics.  </li></ol></div>

There has been growing awareness of the business case for inclusion and diversity (I&amp;D) in the workplace. In Japan, Prime Minister Suga has pledged continued government support for corporate governance reform and he would like to see more women and foreigners in key positions. While many companies cite I&amp;D as a source of competitive advantage and a key enabler of growth, few academic studies have been able to prove a direct link between I&amp;D and financial performance. Our analysis on Japan’s larger companies suggests the following: Most Japanese companies have very low levels of diversity. Although the participation of women on the boards of Japanese companies is expanding, those with higher levels of diversity are yet to see any improvement in financial metrics or stock performance.  Our broad composite index of board entrenchment also bears little correlation with key metrics. However, boards that are younger on average do appear to be more effective, and are correlated with a broad range of operating metrics.  

President

Thomas Coughlin

Coughlin Associates

Thematic (Sector/Industry)

IoT, AI and other big data applications are driving the generation of data and the data that needs to be stored for the long term.  Magnetic tape, now 68 years old, continues to be used for long term data archiving.  The recent demo of technology to create 580TB tape cartridges will enable continuing use of magnetic tape to store the worlds most important data.

IoT, AI and other big data applications are driving the generation of data and the data that needs to be stored for the long term.  Magnetic tape, now 68 years old, continues to be used for long term data archiving.  The recent demo of technology to create 580TB tape cartridges will enable continuing use of magnetic tape to store the worlds most important data.

Fujifilm and IBM Magnetic Tape Milestone:  Supporting Archive Industry

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 – 2021 High Conviction Call Posts a Blowout

Sony blew out 3Q numbers with ¥359bn in OP vs. consensus at ¥188bn and raised FY guidance to ¥940bn in OP, above consensus at ¥753bn, the consensus...

Mio Kato

Sony Warning Signals

Sony Corp (6758 JP) shows tactical upside to chisel out a minor new high but underlying warning signals stem from fading buy volumes and RSI...

Thomas Schroeder

Screening the Silk Road: Q1 2021 High Risk Names to Avoid

As in the previous few quarters, we are on the watch for the risk of deteriorating credit metrics, but in particular during H1 2021. 25 stocks...

David Lepper

Japan Governance - Diversity Matters

Japanese companies have very low levels of board diversity. Participation by women is too low to see any tangible results yet, but more youthful...

Mark Chadwick

Fujifilm and IBM Magnetic Tape Milestone: Supporting Archive Industry

The recent demo of technology to create 580TB tape cartridges will enable continuing use of magnetic tape to store the worlds most important data.

Thomas Coughlin

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