Japanese Equity Specialist, Ortus Advisors

Andrew Jackson

Japanese Equity Specialist

Ortus Advisors

Thematic (Sector/Industry)

<ul>
<li>Tech selloff overnight on NVDA post-earnings weakness was fairly contained, and SPE related in Japan should continue yesterdays rebound off the morning lows.</li>
<li>Big beat for Dell on the strong outlook for its AI servers outweighing the soft consumer PC market sending it +8% in after-market trading.</li>
<li>News that Tepco plans to spend $3.2bn to upgrade its electricity infrastructure to 2030 positive for wire/cable names and related names.</li>
</ul>


Tech selloff overnight on NVDA post-earnings weakness was fairly contained, and SPE related in Japan should continue yesterdays rebound off the morning lows.
Big beat for Dell on the strong outlook for its AI servers outweighing the soft consumer PC market sending it +8% in after-market trading.
News that Tepco plans to spend $3.2bn to upgrade its electricity infrastructure to 2030 positive for wire/cable names and related names.


Japan Morning Connection: Tech Set to Rebound as Dell After-Market Print Sets Positive Tone

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Equity Bottom-Up

On 19 February, we published an insight on the just-announced news of small cap <a href="https://www.smartkarma.com/entities/nippon-rietec-co-ltd" target="_blank" data-smartkarma-citation="entities:20794:1" rel="noopener">Nippon Rietec (1938 JP)</a>'s ascension to the TSE's First Section. That was called <a href="https://www.smartkarma.com/insights/nippon-rietec-1938-super-interesting-events-unfolding" target="_blank" data-smartkarma-citation="insights:36778" rel="noopener">Nippon Rietec (1938) - SUPER Interesting Events Unfolding</a>. That may have sounded a bit optimistic. Nippon Rietec is a 60+ year-old company which many investors would consider boring. They are in the railway electrical equipment and electrical construction business. If it has to do with trains, and electricity, they do it. They do signals, signal monitoring systems, installation of signals, testing systems, electronic gates on platforms and ticket readers, communications systems, electrical transformer stations, overhead electrical lines, electrification of non-electric lines, transmission lines, and all manner of construction around train lines (platform construction, maintenance, enhancement, protective fences, safety barriers, signage, etc. Trains R Us.The three years of trading (weekly data) until that point were as in the chart below.<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/130/223/original/Screenshot%202020-04-28%20at%207.15.30%20PM.png?1588072569" class="editor-image img-responsive" data-smartkarma-image-id="130223"></figure><div class="content-caption">source: tradingview.com, Quiddity</div>But the shareholder structure was such that despite a huge 1 million share offering launched at the same time, there could easily be a squeeze.And there was.The daily chart below shows the announcement, the COVID-19 Global Market Panic, and then the Return To Risk starting in the last week of March. <figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/130/233/original/Screenshot%202020-04-28%20at%208.08.26%20PM.png?1588075796" class="editor-image img-responsive" data-smartkarma-image-id="130233"></figure><div class="content-caption">source: tradingview.com, Quiddity</div>From the ¥1660 open the day following my first insight until TOPIX inclusion today, the total return was 39.9% against total return of TOPIX at -13.0% for the same period.That leaves us at crossroads for the stock. More discussion below.

On 19 February, we published an insight on the just-announced news of small cap Nippon Rietec (1938 JP)'s ascension to the TSE's First Section. That was called Nippon Rietec (1938) - SUPER Interesting Events Unfolding. That may have sounded a bit optimistic. Nippon Rietec is a 60+ year-old company which many investors would consider boring. They are in the railway electrical equipment and electrical construction business. If it has to do with trains, and electricity, they do it. They do signals, signal monitoring systems, installation of signals, testing systems, electronic gates on platforms and ticket readers, communications systems, electrical transformer stations, overhead electrical lines, electrification of non-electric lines, transmission lines, and all manner of construction around train lines (platform construction, maintenance, enhancement, protective fences, safety barriers, signage, etc. Trains R Us.The three years of trading (weekly data) until that point were as in the chart below.source: tradingview.com, QuiddityBut the shareholder structure was such that despite a huge 1 million share offering launched at the same time, there could easily be a squeeze.And there was.The daily chart below shows the announcement, the COVID-19 Global Market Panic, and then the Return To Risk starting in the last week of March. source: tradingview.com, QuiddityFrom the ¥1660 open the day following my first insight until TOPIX inclusion today, the total return was 39.9% against total return of TOPIX at -13.0% for the same period.That leaves us at crossroads for the stock. More discussion below.

Nippon Rietec's (1938) Gangbusters TOPIX Inclusion

Japan

TOKYO ENERGY & SYSTEMS INC. designs and constructs thermal, nuclear, and hydro-electric power plant facilities.  The company also builds transformer substation facilities.  Additionally, Tokyo Energy & Systems performs electrical works for telecommunication, air-conditioning, and water supply systems as well as civil engineering works.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Tokyo Energy & Systems (1945 JP)

Japan Morning Connection: Tech Set to Rebound as Dell After-Market Print Sets Positive Tone

Tech selloff contained, Dell beats with strong outlook for AI servers, Tepco's $3.2bn upgrade plan positive for wire/cable names.

Andrew Jackson

Nippon Rietec's (1938) Gangbusters TOPIX Inclusion

On 19 February, we published an insight on the just-announced news of small cap Nippon Rietec (1938 JP)'s ascension to the TSE's First Section....

Travis Lundy

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Japan Morning Connection: Tech Set to Rebound as Dell After-Market Print Sets Positive Tone

​Tech selloff contained, Dell beats with strong outlook for AI servers, Tepco's $3.2bn upgrade plan positive for wire/cable names.

Andrew Jackson

Nippon Rietec's (1938) Gangbusters TOPIX Inclusion

On 19 February, we published an insight on the just-announced news of small cap Nippon Rietec (1938 JP)'s ascension to the TSE's First Section....

Travis Lundy

Tech selloff contained, Dell beats with strong outlook for AI servers, Tepco's $3.2bn upgrade plan positive for wire/cable names.