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

Keyence – Valuations a Risk but Increasingly Attractive Relative to Peers

Keyence – Weakness in China but the US Encourages

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>We have been touting Keyence as a long hedge against our least favoured pick within the FA space, Fanuc. Since October 2019 the long Keyence, short Fanuc ratio is up about 50% and was at one point up almost 70%. With the FA names generally reporting weak numbers and price action deteriorating, the sector looks like it is losing its bullet-proof quality. We examine below, signs of a potential earnings bottom and the trading outlook for what has been a sector that has completely ignored earnings trends for more than a year.</p>

We have been touting Keyence as a long hedge against our least favoured pick within the FA space, Fanuc. Since October 2019 the long Keyence, short Fanuc ratio is up about 50% and was at one point up almost 70%. With the FA names generally reporting weak numbers and price action deteriorating, the sector looks like it is losing its bullet-proof quality. We examine below, signs of a potential earnings bottom and the trading outlook for what has been a sector that has completely ignored earnings trends for more than a year.

Keyence – 1Q Weak but It Is the SG&A and Hiring Trend Which Should Be Monitored

Keyence Corp

Keyence – 1Q Weak but It Is the SG&A and Hiring Trend Which Should Be Monitored