Senior Technology Analyst, Japanese Equities, LightStream Research

Scott Foster

Securities analyst covering electronics, precision equipment & robotics, engineering, construction, transport and other sectors for more than 25 years in Japan and 3 years in Korea. Permanent resident of Japan.

Senior Technology Analyst, Japanese Equities

Nidec (6594 JP): India & Nvidia Point the Way Forward

Nidec (6594 JP): Buy into Current Decline

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

<ul>
<li>Nidec has announced its intention to acquire Makino Milling Machine (6135 JP) for ¥11,000 per share, a 42% premium over Thursday's closing price.</li>
<li>The stock market liked the idea. Nidec's share price rose 4% on Friday. Makino's jumped 19%. The pice looks high, but at 17.7x Makino's EPS guidance, it is not unreasonable.</li>
<li>The acquisition would be accretive to earnings and bring greater scale and competitiveness to Nidec's machine tool business. It should support our Buy recommendation. </li>
</ul>


Nidec has announced its intention to acquire Makino Milling Machine (6135 JP) for ¥11,000 per share, a 42% premium over Thursday's closing price.
The stock market liked the idea. Nidec's share price rose 4% on Friday. Makino's jumped 19%. The pice looks high, but at 17.7x Makino's EPS guidance, it is not unreasonable.
The acquisition would be accretive to earnings and bring greater scale and competitiveness to Nidec's machine tool business. It should support our Buy recommendation. 


Nidec (6594 JP): Acquisition of Makino Milling Would Add Value

Nidec Corp

Nidec (6594 JP): Acquisition of Makino Milling Would Add Value