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

DeNA – Buyback Protects Downside but Net Cash and Investments Dilute Upside Potential

Nintendo – “Switching” to an IP-Focused Business Model

Nintendo - Too Early to Give up on Mario Kart Tour and Its Gatcha Mechanics

Quiddity Advisors

Equity Bottom-Up

Today, <a href="https://www.smartkarma.com/entities/dena-co-ltd" target="_blank" data-smartkarma-citation="entities:747:1" rel="noopener">Dena Co Ltd (2432 JP)</a> announced the results of its buying in February 2020 in its ongoing buyback program. The company bought back 4.77mm shares for ¥7.57bn at an average price of ¥1586.7/share. That was equivalent to about 12% of volume traded. It was something of a disaster of a month with the stock falling 22.6%, but they managed to beat VWAP despite that.Much of the drop last month was due to the Q3 results released on Feb 5, wherein both regular line profits fell - as had been expected - and the company took a set of non-cash impairments totalling  ¥49.4bn, almost all of which was the goodwill on older game titles which are seeing less activity and other game asset write-downs. The company expects a return to profitability on an IFRS and non-GAAP basis next year. The <a href="https://ssl4.eir-parts.net/doc/2432/ir_material3/133419/00.pdf" target="_blank" rel="noopener">Summary of the Q&amp;A</a> is worth reading. The lack of forecast for full year March 2020 put some people off. But the company is clearly having a go at cleaning house.Importantly, the buyback continues apace. There are just under two months left as of now, and the company has about ¥20bn of ammunition to buy shares. More below.

Today, Dena Co Ltd (2432 JP) announced the results of its buying in February 2020 in its ongoing buyback program. The company bought back 4.77mm shares for ¥7.57bn at an average price of ¥1586.7/share. That was equivalent to about 12% of volume traded. It was something of a disaster of a month with the stock falling 22.6%, but they managed to beat VWAP despite that.Much of the drop last month was due to the Q3 results released on Feb 5, wherein both regular line profits fell - as had been expected - and the company took a set of non-cash impairments totalling  ¥49.4bn, almost all of which was the goodwill on older game titles which are seeing less activity and other game asset write-downs. The company expects a return to profitability on an IFRS and non-GAAP basis next year. The Summary of the Q&amp;A is worth reading. The lack of forecast for full year March 2020 put some people off. But the company is clearly having a go at cleaning house.Importantly, the buyback continues apace. There are just under two months left as of now, and the company has about ¥20bn of ammunition to buy shares. More below.

DeNA

DeNA's Yuuuuuge Buyback Proceeds Apace