Index Rebal/Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal/Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Event-Driven

In my insight <a href="https://www.smartkarma.com/insights/topix-inclusion-trade-summary-sep-2020" target="_blank" data-smartkarma-citation="insights:43700" rel="noopener">TOPIX Inclusion Trade Summary: Sep 2020</a>, I discussed how the newly introduced Section Transfer requirements were going to impact the fate of some pre-event candidates for TOPIX Inclusion Events. In that insight, I picked four names from Quiddity's TOPIX Inclusions Pre-event Watchlist which could potentially try to apply before 1st November 2020 to avoid having to face the new (and more stringent) section transfer requirements. Since then, two out of our four picks have already confirmed their moves: <a href="https://www.smartkarma.com/entities/giftee-inc" target="_blank" data-smartkarma-citation="entities:28280:1" rel="noopener">giftee Inc (4449 JP)</a> and <a href="https://www.smartkarma.com/entities/odk-solutions-co-ltd" target="_blank" data-smartkarma-citation="entities:7143:1" rel="noopener">ODK Solutions (3839 JP)</a>. Friday after market-close, we had another candidate from this list confirm their move; Japanese real estate investment and construction company <a href="https://www.smartkarma.com/entities/faithnetwork-co-ltd" target="_blank" data-smartkarma-citation="entities:29132:1" rel="noopener">FaithNetwork Co Ltd (3489 JP)</a> announced they had received approval (<a href="https://global-assets.irdirect.jp/pdf/tdnet/batch/140120210205457098.pdf" target="_blank" rel="noopener">J-only</a>) to move from the Mothers Market to the First Section of the Tokyo Stock Exchange as of 12th February 2021. Since we turned Bullish on <a href="https://www.smartkarma.com/entities/faithnetwork-co-ltd" target="_blank" data-smartkarma-citation="entities:29132:1" rel="noopener">FaithNetwork Co Ltd (3489 JP)</a> on 29th September 2020, the stock has gained +23.5% (¥ 1,190 to ¥1,470). TSE1 reassignment triggers inclusion into the TOPIX Index and the Inclusion Event can be expected to be at the close of trading 30th March 2021.In this insight, we take a look at the Index Inclusion Parameters and the Fundamentals of the company to evaluate the upside potential of the TOPIX Inclusion Event.

In my insight TOPIX Inclusion Trade Summary: Sep 2020, I discussed how the newly introduced Section Transfer requirements were going to impact the fate of some pre-event candidates for TOPIX Inclusion Events. In that insight, I picked four names from Quiddity's TOPIX Inclusions Pre-event Watchlist which could potentially try to apply before 1st November 2020 to avoid having to face the new (and more stringent) section transfer requirements. Since then, two out of our four picks have already confirmed their moves: giftee Inc (4449 JP) and ODK Solutions (3839 JP). Friday after market-close, we had another candidate from this list confirm their move; Japanese real estate investment and construction company FaithNetwork Co Ltd (3489 JP) announced they had received approval (J-only) to move from the Mothers Market to the First Section of the Tokyo Stock Exchange as of 12th February 2021. Since we turned Bullish on FaithNetwork Co Ltd (3489 JP) on 29th September 2020, the stock has gained +23.5% (¥ 1,190 to ¥1,470). TSE1 reassignment triggers inclusion into the TOPIX Index and the Inclusion Event can be expected to be at the close of trading 30th March 2021.In this insight, we take a look at the Index Inclusion Parameters and the Fundamentals of the company to evaluate the upside potential of the TOPIX Inclusion Event. 

In the month of January 2021, one of the most anticipated TOPIX Inclusion candidates, <a href="https://www.smartkarma.com/entities/toshiba-corp" target="_blank" data-smartkarma-citation="entities:637:1" rel="noopener">Toshiba Corp (6502 JP)</a> announced its move to TSE1 triggering what could potentially be one of the largest TOPIX Inclusion events in recent memory. The stock could see its TOPIX Inclusion take place at the end of February, along with <a href="https://www.smartkarma.com/entities/sansan-inc" target="_blank" data-smartkarma-citation="entities:28112:1" rel="noopener">Sansan Inc (4443 JP)</a> - another larger-than-usual candidate - and two other super-high-impact names <a href="https://www.smartkarma.com/entities/bull-dog-sauce-co-ltd" target="_blank" data-smartkarma-citation="entities:16235:1" rel="noopener">Bull Dog Sauce (2804 JP)</a> and <a href="https://www.smartkarma.com/entities/alps-logistics-co-ltd" target="_blank" data-smartkarma-citation="entities:3935:1" rel="noopener">Alps Logistics (9055 JP)</a>. There is plenty to look forward to. In this insight, I have provided performance updates for 6 "Live" event stocks (including the names mentioned above) which are expected to have Inclusion Events at the end of February 2021 and 14 "Post" event stocks that completed their Inclusion Events at the end of December 2020 and January 2021 (on 28 January 2021).Furthermore, I have also highlighted some interesting Pre-event situations involving stocks that are likely to become TSE1-promotion candidates in the near future.

In the month of January 2021, one of the most anticipated TOPIX Inclusion candidates, Toshiba Corp (6502 JP) announced its move to TSE1 triggering what could potentially be one of the largest TOPIX Inclusion events in recent memory. The stock could see its TOPIX Inclusion take place at the end of February, along with Sansan Inc (4443 JP) - another larger-than-usual candidate - and two other super-high-impact names Bull Dog Sauce (2804 JP) and Alps Logistics (9055 JP). There is plenty to look forward to. In this insight, I have provided performance updates for 6 "Live" event stocks (including the names mentioned above) which are expected to have Inclusion Events at the end of February 2021 and 14 "Post" event stocks that completed their Inclusion Events at the end of December 2020 and January 2021 (on 28 January 2021).Furthermore, I have also highlighted some interesting Pre-event situations involving stocks that are likely to become TSE1-promotion candidates in the near future. 

With the Section Transfer Requirements to move to TSE1 becoming more stringent, some small-cap candidates have been rushing to enter TSE1 so that they can avoid having to face the new regulations under which they may struggle to qualify. This trend has resulted in a "flurry" of TOPIX Inclusion Trades in the month of December 2020 as <a href="https://www.smartkarma.com/profiles/travis-lundy" target="_blank" data-smartkarma-citation="accounts:25" rel="noopener">Travis Lundy</a> predicted in <a href="https://www.smartkarma.com/insights/the-tse-s-listing-criteria-revisions-part-i" target="_blank" data-smartkarma-citation="insights:43150" rel="noopener">The TSE's Listing Criteria Revisions - Part I</a>.
<blockquote>
For index inclusion and event traders taking advantage of a large number of interesting trades, the number will suddenly go waaaay down. This means <a href="https://www.smartkarma.com/profiles/janaghan-jeyakumar-cfa" target="_blank" data-smartkarma-citation="accounts:3173" rel="noopener">Janaghan Jeyakumar, CFA</a> likely has a flurry of interesting trade ideas to read about in the next few months, but after about March next year, things will drop off in a hurry.
</blockquote>
In this insight, I have provided performance updates for 11 "Live" event stocks which are expected to have Inclusion Events at the end of January 2021 and 6 "Post" event stocks that completed their Inclusion Events at the end of November 2020 and December 2020. Furthermore, I have also highlighted some interesting Pre-event situations involving stocks that are likely to become TSE1-promotion candidates in the near future.

With the Section Transfer Requirements to move to TSE1 becoming more stringent, some small-cap candidates have been rushing to enter TSE1 so that they can avoid having to face the new regulations under which they may struggle to qualify. This trend has resulted in a "flurry" of TOPIX Inclusion Trades in the month of December 2020 as Travis Lundy predicted in The TSE's Listing Criteria Revisions - Part I.

For index inclusion and event traders taking advantage of a large number of interesting trades, the number will suddenly go waaaay down. This means Janaghan Jeyakumar, CFA likely has a flurry of interesting trade ideas to read about in the next few months, but after about March next year, things will drop off in a hurry.

In this insight, I have provided performance updates for 11 "Live" event stocks which are expected to have Inclusion Events at the end of January 2021 and 6 "Post" event stocks that completed their Inclusion Events at the end of November 2020 and December 2020. Furthermore, I have also highlighted some interesting Pre-event situations involving stocks that are likely to become TSE1-promotion candidates in the near future. 

In July 2020, the Tokyo Stock Exchange issued Revisions to Listing Rules to Enhance Functions for Raising Funds through the Capital Market as discussed by <a href="https://www.smartkarma.com/profiles/travis-lundy" target="_blank" data-smartkarma-citation="accounts:25" rel="noopener">Travis Lundy</a> in <a href="https://www.smartkarma.com/insights/the-tse-s-listing-criteria-revisions-part-i" target="_blank" data-smartkarma-citation="insights:43150" rel="noopener">The TSE's Listing Criteria Revisions - Part I</a>. Considering these changes, in <a href="https://www.smartkarma.com/insights/topix-inclusion-trade-summary-sep-2020" target="_blank" data-smartkarma-citation="insights:43700" rel="noopener">TOPIX Inclusion Trade Summary: Sep 2020</a>, I picked four names from Quiddity's TOPIX Inclusions Pre-event Watchlist which could potentially try to apply before 1st November 2020 to avoid having to face the new (and more stringent) section transfer requirements. 
A couple of weeks ago, on 18th December 2020,  <a href="https://www.smartkarma.com/entities/giftee-inc" target="_blank" data-smartkarma-citation="entities:28280:1" rel="noopener">giftee Inc (4449 JP)</a>, which was one of these four names, announced its TSE1 move and <a href="https://www.smartkarma.com/profiles/travis-lundy" target="_blank" data-smartkarma-citation="accounts:25" rel="noopener">Travis Lundy</a> covered this situation in <a href="https://www.smartkarma.com/insights/topix-inclusion-giftee-4449-bigger-deal-smaller-impact-expensive" target="_blank" data-smartkarma-citation="insights:46488" rel="noopener">TOPIX Inclusion : Giftee (4449) - Bigger Deal, Smaller Impact, Expensive.</a> 
Last week, after the close on 22nd December 2020, another name from this list, <a href="https://www.smartkarma.com/entities/odk-solutions-co-ltd" target="_blank" data-smartkarma-citation="entities:7143:1" rel="noopener">Odk Solutions (3839 JP)</a> announced they had received approval to move from the Second Section to the First Section of the Tokyo Stock Exchange as of 29th December 2020. 
TSE1 reassignment triggers inclusion into the TOPIX Index and the Inclusion Event can be expected to be at the close of trading 28th January 2021. 
ODK Solutions provides business process outsourcing services in Japan. The company also offers trust calculation services, software development services, network associated systems, and open systems, computer packages, and Office Automation machines. 
In this insight, we take a look at the Index Inclusion Parameters and the Fundamentals of the company to evaluate the upside potential of the TOPIX Inclusion Event.

In July 2020, the Tokyo Stock Exchange issued Revisions to Listing Rules to Enhance Functions for Raising Funds through the Capital Market as discussed by Travis Lundy in The TSE's Listing Criteria Revisions - Part I. Considering these changes, in TOPIX Inclusion Trade Summary: Sep 2020, I picked four names from Quiddity's TOPIX Inclusions Pre-event Watchlist which could potentially try to apply before 1st November 2020 to avoid having to face the new (and more stringent) section transfer requirements. 
A couple of weeks ago, on 18th December 2020,  giftee Inc (4449 JP), which was one of these four names, announced its TSE1 move and Travis Lundy covered this situation in TOPIX Inclusion : Giftee (4449) - Bigger Deal, Smaller Impact, Expensive. 
Last week, after the close on 22nd December 2020, another name from this list, Odk Solutions (3839 JP) announced they had received approval to move from the Second Section to the First Section of the Tokyo Stock Exchange as of 29th December 2020. 
TSE1 reassignment triggers inclusion into the TOPIX Index and the Inclusion Event can be expected to be at the close of trading 28th January 2021. 
ODK Solutions provides business process outsourcing services in Japan. The company also offers trust calculation services, software development services, network associated systems, and open systems, computer packages, and Office Automation machines. 
In this insight, we take a look at the Index Inclusion Parameters and the Fundamentals of the company to evaluate the upside potential of the TOPIX Inclusion Event. 

TOPIX Inclusion: ODK Solutions (3839 JP): High Impact BLUE Name

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

This is yet another name on the list of stocks to own that <a href="https://www.smartkarma.com/profiles/janaghan-jeyakumar-cfa" target="_blank" data-smartkarma-citation="accounts:3173" rel="noopener">Janaghan Jeyakumar, CFA</a> has put together over the past several months.In June 2020 he wrote <a href="https://www.smartkarma.com/insights/topix-inclusion-pre-events-recent-tachiaigai-bunbai-round-up" target="_blank" data-smartkarma-citation="insights:40509" rel="noopener">TOPIX Inclusion Pre-Events: Recent "Tachiaigai Bunbai" Round-Up</a> which pointed out one of the methodologies, and in July 2020 he wrote <a href="https://www.smartkarma.com/insights/topix-inclusion-pre-events-who-is-ready" target="_blank" rel="noopener">TOPIX Inclusion Pre-Events: Who Is Ready?</a> which described a couple of other methodologies, at which point giftee Inc (4449 JP) went onto the Watchlist. That was upgraded to an explicit buy recommendation for giftee in September in <a href="https://www.smartkarma.com/insights/topix-inclusion-trade-summary-sep-2020" target="_blank" data-smartkarma-citation="insights:43700" rel="noopener">TOPIX Inclusion Trade Summary: Sep 2020</a> and in subsequent summaries. He has had a good hit rate on this process, where the newest version is in <a href="https://www.smartkarma.com/insights/topix-inclusions-new-regulations-who-is-ready-2-0" target="_blank" data-smartkarma-citation="insights:45783" rel="noopener">TOPIX Inclusions:  New Regulations! Who Is READY? 2.0</a>.Friday after the close, <a href="https://www.smartkarma.com/entities/giftee-inc" target="_blank" data-smartkarma-citation="entities:28280:1" rel="noopener">giftee Inc (4449 JP)</a> made an <a href="https://contents.xj-storage.jp/xcontents/AS04721/b47ef4c7/5001/4467/8b5c/3de4f8289cfa/20201218153835141s.pdf" target="_blank" rel="noopener">announcement</a> to the effect that the TSE had approved its application to move to TSE First Section, and it will move to TSE1 on 25 December 2020. TSE1 reassignment triggers inclusion into the TOPIX Index and the Inclusion Event can be expected to be at the close of trading 28th January 2021.In this insight, we take a look at the Index Inclusion Parameters and the offering to evaluate the upside potential of the TOPIX Inclusion Event. It is, for those of you who follow the Quiddity TOPIX Inclusion Framework, a GREEN, but it is really just across the border from BLUE which is still OK.

This is yet another name on the list of stocks to own that Janaghan Jeyakumar, CFA has put together over the past several months.In June 2020 he wrote TOPIX Inclusion Pre-Events: Recent "Tachiaigai Bunbai" Round-Up which pointed out one of the methodologies, and in July 2020 he wrote TOPIX Inclusion Pre-Events: Who Is Ready? which described a couple of other methodologies, at which point giftee Inc (4449 JP) went onto the Watchlist. That was upgraded to an explicit buy recommendation for giftee in September in TOPIX Inclusion Trade Summary: Sep 2020 and in subsequent summaries. He has had a good hit rate on this process, where the newest version is in TOPIX Inclusions:  New Regulations! Who Is READY? 2.0.Friday after the close, giftee Inc (4449 JP) made an announcement to the effect that the TSE had approved its application to move to TSE First Section, and it will move to TSE1 on 25 December 2020. TSE1 reassignment triggers inclusion into the TOPIX Index and the Inclusion Event can be expected to be at the close of trading 28th January 2021.In this insight, we take a look at the Index Inclusion Parameters and the offering to evaluate the upside potential of the TOPIX Inclusion Event. It is, for those of you who follow the Quiddity TOPIX Inclusion Framework, a GREEN, but it is really just across the border from BLUE which is still OK. 

TOPIX Inclusion : Giftee (4449) - Bigger Deal, Smaller Impact, Expensive.

Japan

giftee, Inc. provides electronic gift services. The Company gives electronic gifts for free from online with small thanks. giftee also provides gift tickets from shops to customers.

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giftee Inc (4449 JP)

TOPIX Inclusion: FaithNetwork (3489 JP)

Faith Network was a TOPIX Inclusion Pre-Event Trade from late September. It has gained 23.5% since then. It is a Small Size Large Impact trade at...

Janaghan Jeyakumar, CFA

TOPIX Inclusion Trade Summary: Jan 2021

TOPIX Inclusion Monthly Summary for December inclusions and how they did in January (badly), how January inclusions did vs TOPIX (on average well)...

Janaghan Jeyakumar, CFA

TOPIX Inclusion Trade Summary: Dec 2020

TOPIX Inclusions for the month of December - past, current, and looking ahead to January. There is still a flurry of pre-Nov1 application names...

Janaghan Jeyakumar, CFA

TOPIX Inclusion: ODK Solutions (3839 JP): High Impact BLUE Name

ODK Solutions is being promoted to TSE1. The inclusion will be at the end of January. Top line growth is strong and the stock is relatively...

Janaghan Jeyakumar, CFA

TOPIX Inclusion : Giftee (4449) - Bigger Deal, Smaller Impact, Expensive.

giftee (4449) was IPOed expensively and has grown more expensive into its TSE1 inclusion announcement. It's here, as Janaghan Jeyakumar predicted....

Travis Lundy

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