In today’s briefing:
- Organo (6368 JP): From Taiwan to the U.S.
- TOPIX-Nikkei Skew Trade Hit by Sony and Fast Retailing but Outperforming Nikkei
Organo (6368 JP): From Taiwan to the U.S.
- New orders are running ahead of sales as semiconductor capital spending continues to rise and the company follows TSMC to Arizona.
- Water treatment for the semiconductor industry is of growing importance as more emphasis is put on recycling.
- Share price up, but still reasonably valued. 3Q results should be out the first week of February.
TOPIX-Nikkei Skew Trade Hit by Sony and Fast Retailing but Outperforming Nikkei
- A positive earnings surprise for Fast Retailing and Microsoft’s acquisition of Activision Blizzard hitting Sony have hurt the performance of our skew trade.
- Despite this, the dramatic fall in the Nikkei means it is now outperforming the Nikkei since we first suggested the trade.
- Looking forward we expect recent volatility to be absorbed over time and we retain conviction on our picks.
Before it’s here, it’s on Smartkarma
