Japan/Asia Long-Short, LightStream Research

Mio Kato

Over 15 years analysing Japanese and Asian stocks from a long/short perspective

I focus on cyclically driven sectors such as Gaming, Factory Automation and Autos

An eclectic background as a long-short analyst, upper management at a financial data startup through its listing, and as the founder of a team analysing big/alternative data, all of which supports independent and differentiated views... we hope

An appreciation for Mathematics drives the development of a "Micro-Quantamental" process which can provide a data-driven, historically-informed and semi-automated foundation upon which to layer more qualitative and judgemental analysis, thus improving investment decision-making speed and accuracy

Japan/Asia Long-Short

Infosys Whistleblower Report | A Channel Check Narrative

Infosys - A Buyers Perspective Post Whistle Blowing

INFOSYS Whistleblower Report - Too Early To Dip One's Toes In The Water

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Bottom-Up

<p>With Infosys being the subject of a whistle-blower complaint for the third time this decade, we peruse the company’s financial statements and compare them again Tata Consultancy Services and HCL Technologies to assess whether this latest complaint may have merit. The results of our analysis are concerning as we believe data on H-1B Visa rejection rates, expanding employee costs and rising unbilled revenues point to potentially significant operational stress on Infosys. This does not prove that the whistle-blower complaint is true of course, but against the backdrop of numerous governance red flags, the motive for aggressive accounting appears to be present.</p>

With Infosys being the subject of a whistle-blower complaint for the third time this decade, we peruse the company’s financial statements and compare them again Tata Consultancy Services and HCL Technologies to assess whether this latest complaint may have merit. The results of our analysis are concerning as we believe data on H-1B Visa rejection rates, expanding employee costs and rising unbilled revenues point to potentially significant operational stress on Infosys. This does not prove that the whistle-blower complaint is true of course, but against the backdrop of numerous governance red flags, the motive for aggressive accounting appears to be present.

Infosys - The Grim Numbers on H-1B Rejection Rates, Employee Costs and Unbilled Revenues

Infosys Ltd

Infosys - The Grim Numbers on H-1B Rejection Rates, Employee Costs and Unbilled Revenues