In today’s briefing:
- The Biggish Sep 2023 “Wednesday-Thursday Trade” With Added Monday/Friday Flavour
- Ways Should Be Explored to Make Companies More Effective in Disclosing Their Cost of Capital
The Biggish Sep 2023 “Wednesday-Thursday Trade” With Added Monday/Friday Flavour
- Every year it’s the same trade. This year it is Wednesday and Thursday. There are risks to the analysis – notably allocation.
- But there may be ¥800bn+ to buy on one day into the close later this month (+ another ¥200-300bn on two other days). Then a ¥500bn sell two days later.
- Over the past ten years, the two day return on the March trade is great. In Sep, not so much. This year there are Extra Special Flows.
Ways Should Be Explored to Make Companies More Effective in Disclosing Their Cost of Capital
- Recognizing the cost of capital and return on capital is an important factor in determining business strategy, but not many companies disclose their cost of capital and specific management vision.
- In order to increase the effectiveness of disclosure of the cost of capital, we should consider changing the Corporate Governance Code to require disclosure by prime market listed companies.
- JPX Prime 150 Index, which is based on “equity spreads,” has begun to be calculated, but it has’t attracted much attention since its performance doesn’t differ from that of TOPIX.
💡 Before it’s here, it’s on Smartkarma
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