In today’s briefing:
- Nikkei 225 March 2023 Review Quiddity Leaderboard (Nov 2022)
- Appier (4180) | Why Has the Stock Outperformed?
- Shimamura Set for Another Record
- Quarterly Disclosure Discussions Leave Investor Perspectives Behind
Nikkei 225 March 2023 Review Quiddity Leaderboard (Nov 2022)
- Early predictions for the March 2023 Nikkei rebalance (TBA early Feb) are little changed. One way turnover would still be about 1.4%. I see 3 ADDs and 3 DELETEs.
- The 3 ADDs should be Oriental Land (4661), Renesas Electronics (6723), and Japan Airlines (9201). The 3 DELETES Toho Zinc (5707), Toyobo (3101), and Nippon Light Metal (5703).
- Oriental Land is the one to watch in March. The Sep 2023 rebalance and subsequent ones are smaller in size but more interesting in impact.
Appier (4180) | Why Has the Stock Outperformed?
- Appier has been by far the best performing small-cap growth stock in Japan this year
- The company is gaining market share overseas, massively augmenting the Total Addressable Market
- It’s high growth, rising margins, and growing TAM makes this a top stock for SaaS investors
Shimamura Set for Another Record
- Like Workman Co Ltd (7564 JP) and Honeys Holdings Co., Ltd. (2792 JP), Shimamura (8227 JP) has been a beneficiary of both household budget worries during Covid and inflation concerns since.
- The apparel retailer has also worked hard to develop better cost performance ranges and more exciting marketing through collaborations with influencers, helping regain footfall levels.
- Shimamura has clearly regained momentum and looks set to continue to benefit from consumer fears over inflation and ongoing shifts in spending towards low-price retailers.
Quarterly Disclosure Discussions Leave Investor Perspectives Behind
- FSA, which wanted to add Sustainability section, could reach a compromise with companies that wanted to eliminate quarterly disclosures, but but the discussion of the substantive issues took a backseat.
- Since it would be impossible for the supervisory authority not to take action in cases that may occur in future despite empirical evidence, FSA will impose some penalties for misstatements.
- Continuity of information is of utmost importance because if a company that has disclosed quarterly stops doing so, investment decisions will be affected by reduced information available for judging stock-valuation.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
