In today’s briefing:
- MicroStrategy (MSTR US): It’s Cratering Time
- Is It Really Better for Shareholders if NISSOL Remains a Subsidiary of Nippon Steel Corporation?
- Yaskawa (6506) | Further 20% Downside on Higher Rate Cycle
MicroStrategy (MSTR US): It’s Cratering Time
- MicroStrategy Inc (MSTR US) is trading at a ~2% discount to NAV as the crypto rout moves into a higher gear.
- Bitcoin briefly dipped below US$25k in the last 24 hours, an 18-month low. If it falls another 18%, this will trigger a margin call on one of MicroStrategy’s loans.
- All is not well elsewhere in cryptoland. Ethereum touched a 17-month low; the Luna/Terra ecosystem has crashed; and crypto lender Celsus capitulated ~60% this morning after freezing withdrawals.
Is It Really Better for Shareholders if NISSOL Remains a Subsidiary of Nippon Steel Corporation?
- I will discuss the points on the Nikkei article, “TSE Reorganization Leads to Shareholder Proposal: British Fund to Subsidiary of Nippon Steel Corporation.”
- Since the parent-subsidiary listing is related to the parent company’s market capitalization, I don’t believe that the issue is one that can be postponed so long.
- NSSOL, which maintains stable profitability and cash generation, is expected to see its share price rise further if NSSOL becomes independent and foreign shareholding will increase.
Yaskawa (6506) | Further 20% Downside on Higher Rate Cycle
- Stay short ahead of Q1 results. Full year guidance remains too high and will likely be cut later this year
- Yaskawa remains a cyclical stock that correlates with the SOX index – higher interest rates are impacting valuation multiples
- We see 20% downside risk towards 3x price to book
Before it’s here, it’s on Smartkarma