In today’s briefing:
- JAFCO (8595) Vs Murakami – It’s On, So We Wait
- Olympus Corp (7733 JP): Started FY23 on a Strong Note Thanks to Favorable Foreign Exchange Rate
- The Time Is Not Far off when the Prime Market Listing Criteria Itself Will Be Questioned
JAFCO (8595) Vs Murakami – It’s On, So We Wait
- Entities related to noted Japanese activist Murakami Yoshiaki have bought 11.5-15% of Jafco Co Ltd (8595 JP) in recent weeks; JAFCO has gotten upset and announced defensive measures.
- Murakami wants JAFCO to sell its large stake in Nomura Research Institute Ltd (4307 JP) and buy back shares. JAFCO is saving that stake for a rainy day.
- The shares have popped. There is a poison pill EGM Record Date coming. It’s worth thinking through the implications.
Olympus Corp (7733 JP): Started FY23 on a Strong Note Thanks to Favorable Foreign Exchange Rate
- Olympus Corp (7733 JP) reported double-digit revenue and operating profit growth in Q1FY23, thanks to favorable foreign exchange rate. Adjusting for FX, revenue was flat compared to year-ago period.
- Based on favorable foreign exchange rate, management has raised FY23 revenue and operating profit guidance by 5% and 12% to ¥1,019 billion and ¥231 billion, respectively.
- With more than 85% of total revenue coming from international markets, Olympus should remain a prime beneficiary of Japan’s weak currency.
The Time Is Not Far off when the Prime Market Listing Criteria Itself Will Be Questioned
- For the majority of companies applying the measures, the market capitalization in circulation is less than 10 billion yen, which is the reason for not meeting the listing criteria.
- The only solution to this problem is to raise the stock price, which can only be done either by improving profits or by raising the expectation on the future profits.
- It won’t be long before the time comes when the criteria will be questioned in the first place, whether tradable market capitalization of 10 billion yen is sufficiently liquid investment.
💡 Before it’s here, it’s on Smartkarma
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