'Quantamental' Japan Specialist, LightStream Research

Campbell Gunn

Former Japan Equity PM with over 30 of experience now providing database-driven analysis of the market, sectors, peer groups and stocks for LightStream Research.

Leveraging data and graphic analysis provided by Japan Analytics, and the related Japan Analytics iPad App, we provide insights on companies are often ignored by the sell-side as well as challenging conventional wisdom on the market overall.

'Quantamental' Japan Specialist

🇯🇵 JAPAN • Results & Revisions 11/​​​​​​​​​​​​​​​​​​​​​​​​​​​​16 - Recruit & The Tail-End Charlies

🇯🇵 JAPAN • Results & Revisions 12/​​​​​​​​​​​​​​​​​​​​​​​​​​​​04 - Nippon Parking Dev. & Kanamoto

🇯🇵 JAPAN • Results & Revisions 12/​​​​​​​​​​​​​​​​​​​​​​​​​​​​​07 Sekisui House & Oh Dear! Dentsu

🇯🇵 JAPAN • Results & Revisions 11/​​​​​​​​​​​​​​​​​​​​​​​​​​11 - Mitsubishi Estate, Toshiba, GMOs

🇯🇵 JAPAN • Results & Revisions 11/​​​​​​​​​​​​​​​​​​​​​​​​​10 - Shiseido, FUJIFILM, Otsuka, Persol

🇯🇵 JAPAN • Results & Revisions 11/​​​​​​​​​​​​​​​​​​​​​​​​​​​12 McDonald's, Nissan, Hikari, H'hodo

Gravity Works As WeWork Doesn't; Now Plan B

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.

Thematic (Sector/Industry)

Japan Industrials / Thematic (Sector/Industry)

<section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/171/527/original/2020-11-14_11-37-16.png?1605390226" class="editor-image img-responsive" data-smartkarma-image-id="171527"></figure><div class="content-caption">Source for all charts &amp; tables: Japan Analytics</div></section><p><strong>EUPHORIC UP VOLUME</strong> - In the wake of the US election, volume reached the highest levels since March this week and the 'breakout' of the deeply-flawed <a href="https://www.smartkarma.com/entities/nikkei-225" target="_blank" data-smartkarma-citation="entities:22909:1" rel="noopener">Nikkei 225 </a>index attracted some attention.</p><p><a href="https://www.smartkarma.com/entities/tokyo-stock-exchange-tokyo-price-index-topix" target="_blank" data-smartkarma-citation="entities:22910:1" rel="noopener"></a><img src="https://static-prod.smartkarma.com/images/media/000/171/528/original/2020-11-14_11-41-14.png?1605390632" class="editor-image img-responsive" data-smartkarma-image-id="171528"></p><section class="figure"><figure class="editor-figure mceNonEditable"></figure></section><p><strong>LOWER HIGHS</strong> - <a href="https://www.smartkarma.com/entities/tokyo-stock-exchange-tokyo-price-index-topix" target="_blank" data-smartkarma-citation="entities:22910:1" rel="noopener">Topix</a> has a few more false summits to overcome to return to the 1980s. A failure to rise above the 2019 high would result in a technically-unhelpful third 'lower high'. Meanwhile, the Yen continues to drift higher against the US dollar. A breach of the ¥100 level would not be supportive of further market upside.</p><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/171/534/original/2020-11-15_07-35-54.png?1605393369" class="editor-image img-responsive" data-smartkarma-image-id="171534"></figure></section><p><strong>RSI &gt;80</strong> - The 5-day Relative Strenght Index also rallied to above 80 for only the third time this year, and suggests a period of consolidation is ahead.</p><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/171/538/original/2020-11-15_07-45-36.png?1605394410" class="editor-image img-responsive" data-smartkarma-image-id="171538"></figure></section><p><strong>DISCONNECTED</strong> - Unusally, the RSI peak was not matched by a corresponding peak in the Toraku advance/decline ratio. This rally is narrowly concentrated and vulnerable to correction without a broader base of support. Absolute breadth has been steadily falling since the beginning of September and is a bearish signal for the market overall.</p><p><img src="https://static-prod.smartkarma.com/images/media/000/171/539/original/2020-11-14_11-30-48.png?1605394669" class="editor-image img-responsive" data-smartkarma-image-id="171539"></p><section class="figure"><figure class="editor-figure mceNonEditable"></figure></section><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/171/540/original/2020-11-14_09-56-01.png?1605395057" class="editor-image img-responsive" data-smartkarma-image-id="171540"></figure></section><p><strong>TOPIX SMALL LAGS AGAIN</strong> - Lastly, the spread between TOPIX and TOPIX Small has fallen to close to a six-month low suggesting an over-concentration in index 'heavyweights'.</p><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/171/541/original/2020-11-15_08-10-28.png?1605395444" class="editor-image img-responsive" data-smartkarma-image-id="171541"></figure></section><p><strong>NOT CHEAP</strong> - With only <a href="https://www.smartkarma.com/entities/recruit-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:15070:1" rel="noopener">Recruit (6098 JP)</a> left to report among large caps, the mostly-interim results 'season' has concluded. Trailing operating income has reached a six-year low of ¥40 trillion and a further 10% decline is projected over the next four months. More optimistically, forecast Net Income is within ¥0.5 trillion of the trailing total and has risen by ¥1.8 trillion over the last week. Trailing and forecast multiples are just above 30 times and discount a return to a pre-COVID economy by the summer. </p><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/171/582/original/2020-11-15_12-53-24.png?1605412418" class="editor-image img-responsive" data-smartkarma-image-id="171582"></figure></section><p><strong>TURNING THE TIDE</strong> - As in the past, the Cabinet Office Leading Indicator bottomed out in sync (allowing for the reporting lag) with the bottoming out of trailing and forecast earnings momentum for our cap-weighted universe of listed companies. A forthcoming Insight will review the Sector, Peer Group and company highlights of the lastest results and revisions.</p><hr><div><p style="text-align: center;"><strong>• BEST &amp; WORST •</strong></p></div><div>
<p>Our best and worst pairing from Friday's announcements is IT security specialist <a href="https://www.smartkarma.com/entities/change-inc" target="_blank" data-smartkarma-citation="entities:27414:1" rel="noopener">Change (3962 JP)</a> and <a href="https://www.smartkarma.com/entities/olympus-corp" target="_blank" data-smartkarma-citation="entities:356:1" rel="noopener">Olympus (7733 JP)</a>.</p>
<section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/171/583/original/2020-11-15_13-06-16.png?1605413211" class="editor-image img-responsive" data-smartkarma-image-id="171583"></figure></section><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/171/584/original/2020-11-15_13-07-40.png?1605413274" class="editor-image img-responsive" data-smartkarma-image-id="171584"></figure></section><div>
<hr>
<p style="text-align: center;"><strong>DAILY STATS</strong></p>
<hr>
</div>
<div><p style="text-align: center;"><strong>540 Quarterly Results</strong></p></div>
<div><ul style="list-style-type: disc;">
<li><p><strong>Results Score:</strong> 42% Positive / 12% Neutral / 46% Negative</p></li>
<li><p><strong>Average Results Score Change:</strong> -0.3 points</p></li>
<li><p><strong>Average % Change in Revenue:</strong> -7.7% Quarter YoY / -5.3% Rolling TTM YoY </p></li>
<li><p><strong>Average Operating Profit Margin Change:</strong> -2.4ppt</p></li>
<li><p><strong>Percentage Making Quarterly Losses:</strong> 25%</p></li>
</ul></div>
<hr>
<div><p style="text-align: center;"><strong>216 Annual • 29 Interim Forecasts/Revisions</strong></p></div>
<div><ul style="list-style-type: disc;">
<li><p><strong>Annual Forecast/Revision Score:</strong> 46% Positive / 14% Neutral / 40% Negative</p></li>
<li><p><strong>Interim Forecast/Revision Score Change:</strong> 31% Positive / 17% Neutral / 52% Negative</p></li>
<li><p><strong>Average Forecast/Revision Score Change:</strong> +0.1 points</p></li>
</ul></div>
</div>

Source for all charts &amp; tables: Japan AnalyticsEUPHORIC UP VOLUME - In the wake of the US election, volume reached the highest levels since March this week and the 'breakout' of the deeply-flawed Nikkei 225 index attracted some attention.LOWER HIGHS - Topix has a few more false summits to overcome to return to the 1980s. A failure to rise above the 2019 high would result in a technically-unhelpful third 'lower high'. Meanwhile, the Yen continues to drift higher against the US dollar. A breach of the ¥100 level would not be supportive of further market upside.RSI &gt;80 - The 5-day Relative Strenght Index also rallied to above 80 for only the third time this year, and suggests a period of consolidation is ahead.DISCONNECTED - Unusally, the RSI peak was not matched by a corresponding peak in the Toraku advance/decline ratio. This rally is narrowly concentrated and vulnerable to correction without a broader base of support. Absolute breadth has been steadily falling since the beginning of September and is a bearish signal for the market overall.TOPIX SMALL LAGS AGAIN - Lastly, the spread between TOPIX and TOPIX Small has fallen to close to a six-month low suggesting an over-concentration in index 'heavyweights'.NOT CHEAP - With only Recruit (6098 JP) left to report among large caps, the mostly-interim results 'season' has concluded. Trailing operating income has reached a six-year low of ¥40 trillion and a further 10% decline is projected over the next four months. More optimistically, forecast Net Income is within ¥0.5 trillion of the trailing total and has risen by ¥1.8 trillion over the last week. Trailing and forecast multiples are just above 30 times and discount a return to a pre-COVID economy by the summer. TURNING THE TIDE - As in the past, the Cabinet Office Leading Indicator bottomed out in sync (allowing for the reporting lag) with the bottoming out of trailing and forecast earnings momentum for our cap-weighted universe of listed companies. A forthcoming Insight will review the Sector, Peer Group and company highlights of the lastest results and revisions.• BEST &amp; WORST •
Our best and worst pairing from Friday's announcements is IT security specialist Change (3962 JP) and Olympus (7733 JP).


DAILY STATS


540 Quarterly Results

Results Score: 42% Positive / 12% Neutral / 46% Negative
Average Results Score Change: -0.3 points
Average % Change in Revenue: -7.7% Quarter YoY / -5.3% Rolling TTM YoY 
Average Operating Profit Margin Change: -2.4ppt
Percentage Making Quarterly Losses: 25%


216 Annual • 29 Interim Forecasts/Revisions

Annual Forecast/Revision Score: 46% Positive / 14% Neutral / 40% Negative
Interim Forecast/Revision Score Change: 31% Positive / 17% Neutral / 52% Negative
Average Forecast/Revision Score Change: +0.1 points



🇯🇵 JAPAN • Market Update & Results & Revisions 11/​​​​​​​​​​​​​​​​​​​​​​13 - Euphoria!

🇯🇵 JAPAN • Market Update & Results & Revisions 11/​​​​​​​​​​​​​​​​​​​​​​13 - Euphoria!

🇯🇵 JAPAN • Market Update & Results & Revisions 11/13 - Euphoria!