Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

HK Type 4 license through Ballingal Investment Advisors Ltd. ("BIA" or "BIAL")

BACKGROUND
I have 20+yrs experience in Asia doing alternative strategies (i.e. non-delta1 non long-only) in fixed income, equity derivatives, and activist/catalyst/event-driven and long-short equity strategies with most of that time spent managing money. 

4 years in fixed income macro, 8 years running internal hedge fund and 4yrs investment banking at Citi in Japan, 3 years running an Asia multi-strat portfolio at a hedge fund, 4+yrs as an independent special situations analyst.

Pan-Asia Catalysts/Events

Sanrio - Hello Kitty and Kuromi Characters to Expand in China But Valuations Remain Lofty

Quiddity Advisors

Event-Driven

Last Friday 30 October after the close, theme park operator and character licensor <a href="https://www.smartkarma.com/entities/sanrio-co-ltd" target="_blank" data-smartkarma-citation="entities:16476:1" rel="noopener">Sanrio Co Ltd (8136 JP)</a> announced earnings for Q2. They were less than salutary with H1 revenues -38.3%, and H1 OP and Net Profit negative to the tune of about negative 15% OPMs and NPMs.
Q1 revenues were down 45.5%yoy. Q2 turned out to be down 31.5%yoy. H2 revenues are now forecast to be down 18%yoy, which strikes me as aggressive. 
The stock fell 7% on the news, and did not rally on Day 2.
Today after the close, the company announced that its lead shareholder <a href="https://www.smartkarma.com/entities/sega-sammy-holdings-inc" target="_blank" data-smartkarma-citation="entities:19932:1" rel="noopener">Sega Sammy Holdings (6460 JP)</a> wanted to sell some of its position, dropping it from 10+% to about 7.1% by selling 3,510,000 shares and to accommodate that desire and to use its cash to increase capital efficiency, the company would conduct a ToSTNeT-3 buyback before the open on 5 November to buy up to 3,391,700 shares, spending up to JPY 6 billion, at today's closing price of JPY 1,769/share. 
This doesn't change float. It slightly positively affects future-when-profitable-again EPS. But for anyone who is bearish, it represents an opportunity.

Last Friday 30 October after the close, theme park operator and character licensor Sanrio Co Ltd (8136 JP) announced earnings for Q2. They were less than salutary with H1 revenues -38.3%, and H1 OP and Net Profit negative to the tune of about negative 15% OPMs and NPMs.
Q1 revenues were down 45.5%yoy. Q2 turned out to be down 31.5%yoy. H2 revenues are now forecast to be down 18%yoy, which strikes me as aggressive. 
The stock fell 7% on the news, and did not rally on Day 2.
Today after the close, the company announced that its lead shareholder Sega Sammy Holdings (6460 JP) wanted to sell some of its position, dropping it from 10+% to about 7.1% by selling 3,510,000 shares and to accommodate that desire and to use its cash to increase capital efficiency, the company would conduct a ToSTNeT-3 buyback before the open on 5 November to buy up to 3,391,700 shares, spending up to JPY 6 billion, at today's closing price of JPY 1,769/share. 
This doesn't change float. It slightly positively affects future-when-profitable-again EPS. But for anyone who is bearish, it represents an opportunity. 

Sanrio

Biggish Sanrio (8136) ToSTNeT-3 Buyback