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

Mercari – The US Push and the Merpay Strategy

2020 High Conviction - A Mercarific Holiday Season to All

Mercari – Merpay Acquisition of Origami Pay Continues Cashless Consolidation

Mercari: Micro-Quantamental Support for LT 40% OPM and Signs of a US Turnaround Say Buy

Mercari Inc (4385 JP): Steep Decline in Price Appears Unwarranted Given Positive Outlook on OP

Mercari: Why Mercari Is Likely to Be a Winner in the Cashless Wars

Mercari (4385) A Great Business but over Priced

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>Mercari dropped 18.9% following its 1QFY06/20 earnings release as GMV growth in both Japan and the US disappointed and costs for the US business and Merpay escalated leading to a ¥7bn operating loss for 1Q.</p><p>Results were weak but we feel the market reaction was rather extreme and believe it creates an excellent opportunity for longer-term investors.</p>

Mercari dropped 18.9% following its 1QFY06/20 earnings release as GMV growth in both Japan and the US disappointed and costs for the US business and Merpay escalated leading to a ¥7bn operating loss for 1Q.Results were weak but we feel the market reaction was rather extreme and believe it creates an excellent opportunity for longer-term investors.

Mercari – Shift to Supply-Focused Promotions Slow GMV Growth