In today’s briefing:
- JAPAN ACTIVISM: Murakami-San Goes Substantial on Arcland SHD (3085) Ahead of Merger Vote Record Date
- Advantest (6857 JP): 20% Potential Downside
JAPAN ACTIVISM: Murakami-San Goes Substantial on Arcland SHD (3085) Ahead of Merger Vote Record Date
- Today, City index Eleventh, the corporate entity often used by noted activist Yoshiaki Murakami, announced (EDINET filing) they owned 1.756mm shares or 5.31% of Arcland Service (3085 JP)
- In mid-April, Arclands Corporation (9842 JP) announced it would merge with 55%-owned restaurant subsidiary Arclands SHD. Murakami-owned 5+% of Arclands at the time. Then it sold 9842 and bought 3085.
- This looks like a confusing set of moves. It is not as confusing when you think about it. He is setting up something for later.
Advantest (6857 JP): 20% Potential Downside
- FY Mar-24 guidance – sales down 14%, operating profit down 37% – is not extreme compared with previous cycles.
- History shows that downturns at Advantest can last for two or even three years, not just one. Weak economic conditions add to this possibility.
- The share price has rebounded from the recent sell-off, but optimism is unwarranted. Historical valuation ranges suggest potential downside of 20% or more.
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