In today’s briefing:
- ToyoKen (1890) Mystery Bidder Is Yamauchi No. 10 Family Office – And That Changes Things
- Mitsubishi Electric (6503 JP): Buy on Weakness for the Long Term
- BayCurrent: Strong Results but Guidance Seems Too Conservative
- BayCurrent (6532) A Consulting Powerhouse Growing in the Double Digits
- ClearBridge International Growth ADR Strategy Portfolio Manager Commentary Q1 2022
- ClearBridge International Growth EAFE Strategy Portfolio Manager Commentary Q1 2022
- Clearbridge Investments Mid Cap Strategy Portfolio Manager Commentary Q1 2022
ToyoKen (1890) Mystery Bidder Is Yamauchi No. 10 Family Office – And That Changes Things
- A Nikkei article this morning says the mystery bidder behind WK1/2/3 Limited is Nintendo founding family’s Yamauchi No.10 Family Office. This changes things more than just knowing their identity does.
- To start, their website is the most fun investment management company website I have come across. It’s great. https://y-n10.com/. It’s also well worth reading. It’s also worth noting their history.
- Understanding the parameters here is key to understanding possible next steps.
Mitsubishi Electric (6503 JP): Buy on Weakness for the Long Term
- Investing in factory automation, power semiconductors and electric vehicle motors on a long-term view while interest rates rise and the economy weakens.
- Difficult operating environment now: Factory automation turning down; automotive hit by high materials costs and the semiconductor shortage.
- Share price down 25% from its 52-week high. Selling at 14x FY Mar-22 EPS guidance after a downward revision, which compares with a 9x – 20x 5-year P/E range.
BayCurrent: Strong Results but Guidance Seems Too Conservative
- Baycurrent Consulting (6532 JP) reported 4QFY02/2022 results today. Revenue grew 30.9% YoY to JPY16.2bn while OP increased 61.3% YoY to JPY6.8bn.
- Full-Year FY02/2022 revenues grew 34.4% YoY to JPY57.6bn and OP increased 58.7% YoY to JPY21.5bn. Both revenue and OP beat guidance by 1.9% and 2.4% respectively.
- BayCurrent’s shares are down 30% since its peak in September 2021, and we think current share price offers a good entry point.
BayCurrent (6532) A Consulting Powerhouse Growing in the Double Digits
- Another excellent set of results which supports our bullish view on the stock
- BayCurrent is a key enabler of DX in Japan and a beneficiary of the tight labour market
- The stock is down around 30% from its all-time high. Growth investors should be picking up stock
ClearBridge International Growth ADR Strategy Portfolio Manager Commentary Q1 2022
- International equities were faced with numerous risks in the first quarter, ranging from resurging COVID-19 cases in large geographies like China to inflation and potential monetary tightening globally
- Europe was most directly impacted by the conflict as crude oil and natural gas prices spiked and already-challenged supply chains were further pressured
- One of the key drivers of the rotation from growth to value stocks was action in the bond market
ClearBridge International Growth EAFE Strategy Portfolio Manager Commentary Q1 2022
- ClearBridge is a leading global asset manager committed to active management.
- ClearBridge believes Europe has the support structures and spending capacity to avoid a recession and keep an incipient post-COVID-19 recovery intact.
- We were active in repositioning the portfolio to better manage the volatile risk/reward environment in international markets.
Clearbridge Investments Mid Cap Strategy Portfolio Manager Commentary Q1 2022
- ClearBridge is a leading global asset manager committed to active management.
- The Strategy underperformed the benchmark as elevated levels of uncertainty and volatility during the quarter put pressure on mid cap stocks.
- We are confident in our current portfolio construction and believe our holdings will persevere through these short- term challenges.
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