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

Pacific Textiles – Breaking Out of Its Slump

Pacific Textiles – Valuation and Sector Momentum Update

Pacific Textiles: When Will Toray Take Its Stake Up to 50%?

Toray Buys Pacific Textiles Stake from Founder - Possible Lead-In to Partial Offer Next Year?

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>In May 2018 we noted that Pacific Textiles was looking cheap based on its valuation, dividend and the potential for a follow-on partial tender by Toray which had previously acquired a 28% stake in the company. The speculation was partly based on a Nikkei article touting that Toray would look to take its stake up to 50%. Toray has still not made a move to consolidate Pacific Textiles but the cheapness of the company nevertheless led to a 26% rally in the share price into the end of 2018. Following this, however, weak sales have led the stock to drop 35% and with the dividend yield now at 9.5% based on last year’s dividend, we examine the stock again.</p>

In May 2018 we noted that Pacific Textiles was looking cheap based on its valuation, dividend and the potential for a follow-on partial tender by Toray which had previously acquired a 28% stake in the company. The speculation was partly based on a Nikkei article touting that Toray would look to take its stake up to 50%. Toray has still not made a move to consolidate Pacific Textiles but the cheapness of the company nevertheless led to a 26% rally in the share price into the end of 2018. Following this, however, weak sales have led the stock to drop 35% and with the dividend yield now at 9.5% based on last year’s dividend, we examine the stock again.

Pacific Textiles – Still an M&A Candidate but Now Cheaper and with Stabilising Earnings