Expert on Japan Retail and Consumer Markets, JapanConsuming

Michael Causton

Expert on Japan Retail and Consumer Markets

Real Insight on Japanese Consumer Markets

JapanConsuming

JapanConsuming is a specialist research firm producing intelligence on Japanese retail and consumer markets. Founded in 2000, JapanConsuming has become the leading provider of insights on Japanese retailers and consumer trends to retailers, brands, government agencies and investors. As well as a highly regarded monthly report on the market, JapanConsuming produces in-depth reports on retail sectors, seminars on key trends and telephone consulting to investors on trends and retailers.

JapanConsuming was founded by Michael Causton and Roy Larke. 

Event-Driven

The Japanese drugstore sector has been consolidating fast for a decade led by <a href="https://www.smartkarma.com/entities/aeon-co-ltd" target="_blank" data-smartkarma-citation="entities:3:1">Aeon's (8267 JP)</a> Welcia subsidiary, <a href="https://www.smartkarma.com/entities/tsuruha-holdings-inc" target="_blank" data-smartkarma-citation="entities:9536:1">Tsuruha Holdings (3391 JP)</a> and <a href="https://www.smartkarma.com/entities/sundrug-co-ltd" target="_blank" data-smartkarma-citation="entities:12615:1">Sundrug Co Ltd (9989 JP)</a>, which have taken the top three spots in the sector ahead of the long-time leader, <a href="https://www.smartkarma.com/entities/matsumotokiyoshi-holdings-co" target="_blank" data-smartkarma-citation="entities:2259:1">Matsumotokiyoshi Holdings Co (3088 JP)</a>.
Last month the latter tried to retake its pole position by opening negotiations to buy seventh-ranked <a href="https://www.smartkarma.com/entities/cocokara-fine-inc" target="_blank" data-smartkarma-citation="entities:15447:1">Cocokara Fine (3098 JP)</a>. A few days later, however, sixth-ranked <a href="https://www.smartkarma.com/entities/sugi-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:9255:1">Sugi Holdings (7649 JP)</a> began its own negotiations, creating an unusual situation where two companies are publicly bidding for the same target.
(For details on the deal and the likely implications for respective share prices etc, as always I defer to <a href="https://www.smartkarma.com/profiles/travis-lundy" target="_blank" data-smartkarma-citation="accounts:25">Travis Lundy</a> who has an excellent analysis on this in his Insight <a href="https://www.smartkarma.com/insights/cocokara-fine-cocokara" target="_blank">here</a>).
A deal with Cocokara Fine is crucial for Matsumotokiyoshi. If it succeeds, it will again lead the sector with a business a third bigger than the current leader. If it fails to woo the smaller firm and Sugi succeeds, however, Matsumotokiyoshi will have fallen from sector leader to the sixth position in three years and will likely want to start wooing current third-ranked player <a href="https://www.smartkarma.com/entities/sundrug-co-ltd" target="_blank" data-smartkarma-citation="entities:12615:1">Sundrug Co Ltd (9989 JP)</a>. It may even try and negotiate a partial merger with Tsuruha if it doesn't want to be left behind in what will likely become a sector dominated by three or four major retail groups in the next five years.
Whatever the outcome of the Cocokara Fine deal, further consolidation will occur in Japan's drugstore sector and M&amp;A will be a key strategy to make this happen.

The Japanese drugstore sector has been consolidating fast for a decade led by Aeon's (8267 JP) Welcia subsidiary, Tsuruha Holdings (3391 JP) and Sundrug Co Ltd (9989 JP), which have taken the top three spots in the sector ahead of the long-time leader, Matsumotokiyoshi Holdings Co (3088 JP).
Last month the latter tried to retake its pole position by opening negotiations to buy seventh-ranked Cocokara Fine (3098 JP). A few days later, however, sixth-ranked Sugi Holdings (7649 JP) began its own negotiations, creating an unusual situation where two companies are publicly bidding for the same target.
(For details on the deal and the likely implications for respective share prices etc, as always I defer to Travis Lundy who has an excellent analysis on this in his Insight here).
A deal with Cocokara Fine is crucial for Matsumotokiyoshi. If it succeeds, it will again lead the sector with a business a third bigger than the current leader. If it fails to woo the smaller firm and Sugi succeeds, however, Matsumotokiyoshi will have fallen from sector leader to the sixth position in three years and will likely want to start wooing current third-ranked player Sundrug Co Ltd (9989 JP). It may even try and negotiate a partial merger with Tsuruha if it doesn't want to be left behind in what will likely become a sector dominated by three or four major retail groups in the next five years.
Whatever the outcome of the Cocokara Fine deal, further consolidation will occur in Japan's drugstore sector and M&amp;A will be a key strategy to make this happen.

Drug-Fuelled Marriages and Macho Shachos* in Japan

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

The S&amp;P 500 is poised to retest the 2,790-2,800 horizontal resistance level that we have highlighted in previous reports. A bullish short-term reversal in the XLF has helped bolster optimism in U.S. equities.  We continue to expect the broad YTD consolidation to continue, especially given heightened trade tariff tensions. In today’s report we highlight attractive opportunities within Consumer Staples, Technology, and Health Care.

The S&amp;P 500 is poised to retest the 2,790-2,800 horizontal resistance level that we have highlighted in previous reports. A bullish short-term reversal in the XLF has helped bolster optimism in U.S. equities.  We continue to expect the broad YTD consolidation to continue, especially given heightened trade tariff tensions. In today’s report we highlight attractive opportunities within Consumer Staples, Technology, and Health Care.

U.S. Equity Strategy: XLF Support Holding; Large-Cap Health Care Perks Up

Japan

MEDPPEER provide social network services for the medical/pharmaceutical professionals. The service is intended to share knowledge, analysis, and treatment results to improve their medical practice.

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Medpeer Inc (6095 JP)

Drug-Fuelled Marriages and Macho Shachos* in Japan

The Japanese drugstore sector has been consolidating fast for a decade led by Aeon's (8267 JP) Welcia subsidiary, Tsuruha Holdings (3391 JP) and...

Michael Causton

U.S. Equity Strategy: XLF Support Holding; Large-Cap Health Care Perks Up

The S&P 500 is poised to retest the 2,790-2,800 horizontal resistance level that we have highlighted in previous reports. A bullish short-term...

Vermilion Research

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