6 Comments

Thanks Alex, great idea indeed!

Any comment on any of your two Japanese ideas (Iwatani, Daiwabo) after the recent price drop?

Expand full comment
author

Thanks for the comment!

I’ve just updated the QTD performance for all coverage names. Please take a look at my Substack Note or the Tweet on my X feed.

Iwatani’s move is similar to the Japanese index and other Japanese trading companies on no particular news.

Daiwabo posted slightly disappointing quarterly results, with strong sales but a weak margin for the quarter.

Expand full comment

Excelente Alex, hace unos días que estoy investigando a Iwatani y creo que puede ser una gran oportunidad, voy hacer una entrada para ir valorando la compañía más a fondo. Creo que la voy a comprar en el Tradegate, aquí el tiker seria IWA, que opinas de esta bolsa ?

Expand full comment
author

Thank you for your feedback.

I know nothing about buying small Japanese stocks on European exchanges! If it works at all, I can imagine a risk of big price gaps.

I have an account with Interactive Brokers, and I am able to invest directly on the Tokyo Stock Exchange.

Gracias por tus comentarios.

¡No sé nada sobre cómo comprar pequeñas acciones japonesas en las bolsas europeas! Si funciona, puedo imaginar el riesgo de que se produzcan grandes diferencias de precios.

Tengo una cuenta en Interactive Brokers y puedo invertir directamente en la Bolsa de Valores de Tokio.

Expand full comment
Jun 24Liked by Alex Sweet

Great write-up.

I do not necessarily see the value opportunity though, given low margins and ROIC. Is there a case that’s going to improve?

Expand full comment
author

Margins have already been on the increase over time, and I do expect further margin progress, from both Industrial Gas and Energy segments.

As I show, the stock has de-rated even as margins have increased.

So the opportunity to make great money arises from decent HSD earnings growth plus 2% divi yield plus gradual re-rating, which could add up to a sustained DD return.

Expand full comment