In today’s briefing:
- Hitachi Transport (9086 JP): Trading Too Wide
- MonotaRo: Not a Pandemic Stock
Hitachi Transport (9086 JP): Trading Too Wide
- The Hitachi Transport System (9086 JP) deal announced last week was a big win for minorities, discussed in Hitachi Transport System (9086) Shareholders Get the BIG Win in This VLBO.
- Market ructions and the Hitachi Metals saga have this trading wide.
- This deal looks different in terms of approval risk and timing risk than Hitachi Metals and is worth a closer look now.
MonotaRo: Not a Pandemic Stock
- Monotaro’s 1Q22 topline was broadly in line with expectations but OP overshot consensus and company guidance by ¥355m and ¥396m respectively as SG&A fell short of the plan by ¥435m.
- Although the market treated MonotaRO Co Ltd (3064 JP) as a pandemic stock, it has stronger fundamentals than most pandemic winners.
- Shares are not cheap enough to be outright bullish but it is still a decent long hedge to short many other low-quality names.
Before it’s here, it’s on Smartkarma
