Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>A Nikkei article overnight displays the first buds of "spring" around Toshiba management's tilt towards trying to get shareholders what they want after the Separation Plan failed at the EGM.</li>
<li>The article doesn't say much, but it is a sign the Toshiba Board are not "lying flat."</li>
<li>However it doesn't mean a deal is coming much less anywhere near doable. This is a long road. But it encourages more proactive portfolio resconstruction. </li>
</ul>


A Nikkei article overnight displays the first buds of "spring" around Toshiba management's tilt towards trying to get shareholders what they want after the Separation Plan failed at the EGM.
The article doesn't say much, but it is a sign the Toshiba Board are not "lying flat."
However it doesn't mean a deal is coming much less anywhere near doable. This is a long road. But it encourages more proactive portfolio resconstruction. 


First News of Toshiba "Studying a Privatisation Plan"

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.

<ul>
<li>Toshiba Tec is one of our favourite small caps in Japan with a strong fundamental story and upside event risks from the Toshiba soap opera. </li>
<li>The name was up 14.3% today despite middling earnings released mid-day on its designation as non-core by parent Toshiba. </li>
<li>That puts it at an all-time high and within a whisker of ¥5,000 with the event risk now clearly visible.</li>
</ul>


Toshiba Tec is one of our favourite small caps in Japan with a strong fundamental story and upside event risks from the Toshiba soap opera. 
The name was up 14.3% today despite middling earnings released mid-day on its designation as non-core by parent Toshiba. 
That puts it at an all-time high and within a whisker of ¥5,000 with the event risk now clearly visible.


<ul>
<li>Today 3D Investment Partners addressed Toshiba’s spinoff plan in a letter addressed to the Strategic Review Committee. </li>
<li>Unsurprisingly, they were dissatisfied with the results of the strategic review. </li>
<li>Also unsurprisingly they offered no great alternatives pointing to continued meandering.</li>
</ul>


Today 3D Investment Partners addressed Toshiba’s spinoff plan in a letter addressed to the Strategic Review Committee. 
Unsurprisingly, they were dissatisfied with the results of the strategic review. 
Also unsurprisingly they offered no great alternatives pointing to continued meandering.


Toshiba – 3D’s Letter Suggests a Lack of Ideas

<ul>
<li>Toshiba stock has been slightly weak since earnings and its official spinoff announcement. </li>
<li>After speaking to the company, we came away more encouraged about the core business. </li>
<li>However, we believe real buying will not come in until there is more clarity on its future and would thus target a lower entry point.</li>
</ul>


Toshiba stock has been slightly weak since earnings and its official spinoff announcement. 
After speaking to the company, we came away more encouraged about the core business. 
However, we believe real buying will not come in until there is more clarity on its future and would thus target a lower entry point.


Toshiba – Processing Things After Speaking to the Company

<ul>
<li>On Friday 12 November, <a href="https://www.smartkarma.com/entities/toshiba-corp" target="_blank" data-smartkarma-citation="entities:637:1" rel="noopener">Toshiba Corp (6502 JP)</a> released earnings (<a href="https://www.toshiba.co.jp/about/ir/en/finance/er/er2021/q2/ter2021q2e.pdf" target="_blank" rel="noopener">results</a>, <a href="https://www.toshiba.co.jp/about/ir/en/pr/pdf/tpr2021q2e.pdf" target="_blank" rel="noopener">presentation</a>), a slight forecast revision to full year sales (upward), and its long-awaited Strategic Plan (<a href="https://www.toshiba.co.jp/about/ir/en/pr/pdf/tpr2021q2e_4.pdf" target="_blank" rel="noopener">Process</a>, <a href="https://www.toshiba.co.jp/about/ir/en/pr/pdf/tpr2021q2e_2.pdf" target="_blank" rel="noopener">Plan</a>)</li>
<li>The Strategic Review Committee surveyed and met with investors, potential acquirers, and consultants, and devised a plan (<a href="https://www.ft.com/content/045c6366-3c54-4462-89b4-95246122c948" target="_blank" rel="noopener">previewed</a> by the FT) to split into three companies by March 2024.</li>
<li>This is at a time bold, yet unexciting. Promising, yet somehow not. They've been well-advised in some areas, less well-advised in others. It's complicated. AND there is a buyback.</li>
</ul>


On Friday 12 November, Toshiba Corp (6502 JP) released earnings (results, presentation), a slight forecast revision to full year sales (upward), and its long-awaited Strategic Plan (Process, Plan)
The Strategic Review Committee surveyed and met with investors, potential acquirers, and consultants, and devised a plan (previewed by the FT) to split into three companies by March 2024.
This is at a time bold, yet unexciting. Promising, yet somehow not. They've been well-advised in some areas, less well-advised in others. It's complicated. AND there is a buyback.


Toshiba Strategic Review - Bold and Unexciting, Promising But Not.. Doesn't Solve the Problem

Japan

TOSHIBA TEC CORPORATION manufactures electronic equipment for distribution system, document processing, and household use.  The Company's products include Point of Sale (POS) systems, bar code scanners, copy machines, printers, and vacuum cleaners.

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Toshiba Tec (6588 JP)

First News of Toshiba "Studying a Privatisation Plan"

The Toshiba EGM saw the Board's Separation Plan fail to receive approval yesterday. Something like 12 hours later and the Nikkei has an article...

Travis Lundy

Toshiba Tec – All-Time Highs

Toshiba Tec is one of our favourite small caps in Japan with a strong fundamental story and upside event risks from the Toshiba soap opera.

Mio Kato

Toshiba – 3D’s Letter Suggests a Lack of Ideas

3D's letter to Toshiba's SRC points to a fundamental disconnect with reality on their part. We see little prospect of a positive resolution in the...

Mio Kato

Toshiba – Processing Things After Speaking to the Company

After speaking to Toshiba we came away more encouraged about the core business but believe real buying will not come in until there is more clarity...

Mio Kato

Toshiba Strategic Review - Bold and Unexciting, Promising But Not.. Doesn't Solve the Problem

Toshiba Strategic Review is done. The proposal is to split the company into three. It is good "corporate structuring" and tax planning. But it may...

Travis Lundy

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