Focus on Smaller Cap Value Names, Altay Capital

Altay Capital

Focus on Smaller Cap Value Names

Long time value investor. Long/Short portfolio that’s always net long (between 30-80%). I have extensive experience in the video game industry as I founded a leading media company in the space, which I have since exited after an acquisition. Gaming companies only make up ~15% of my portfolio, but its a sector where I believe I have an edge. A newsletter about value investing! Mostly focus on smaller cap value names that aren't widely covered.

Equity Bottom-Up

<ul><li>MegaChips Corp (TYO 6875) is one of several companies in Japan with a large stake in a publicly listed company in the U.S. that dwarfs its own market cap.</li><li>In this case, MegaChips owns ~10% of SITM. Off the top of my head there’s also Sanken Electric (TYO 6707) which owns 32% of ALGM.</li><li>But there’s a reason I’m writing about MegaChips instead of Sanken Electric: the discount is wider AND the remaining operating business is both simpler and better.</li></ul>

MegaChips Corp (TYO 6875) is one of several companies in Japan with a large stake in a publicly listed company in the U.S. that dwarfs its own market cap.In this case, MegaChips owns ~10% of SITM. Off the top of my head there’s also Sanken Electric (TYO 6707) which owns 32% of ALGM.But there’s a reason I’m writing about MegaChips instead of Sanken Electric: the discount is wider AND the remaining operating business is both simpler and better.

MegaChips Corp (TYO 6875): Trades at ¥11,250 but Gets You ¥19,842 of After-Tax SiTime

Japan Specialist

Mark Chadwick

Thematic (Sector/Industry)

<ul>
<li>Sun Corp (6736 JP): A deep-value holding company trading below the value of its 44% stake in NASDAQ-listed Cellebrite; positioned as a discounted proxy on the growth of digital forensics. </li>
<li>MegaChips (6875 JP): A fabless semiconductor firm with a legacy ASIC business but a hidden asset in its ¥160 billion SiTime stake; City Index Eleven to pressure value unlock</li>
<li>KeePer (6036 JP): A high-margin car detailing business with embedded optionality through its SOFT99 stake; activist entry by Misaki Capital ensures governance pressure.</li>
</ul>


Sun Corp (6736 JP): A deep-value holding company trading below the value of its 44% stake in NASDAQ-listed Cellebrite; positioned as a discounted proxy on the growth of digital forensics. 
MegaChips (6875 JP): A fabless semiconductor firm with a legacy ASIC business but a hidden asset in its ¥160 billion SiTime stake; City Index Eleven to pressure value unlock
KeePer (6036 JP): A high-margin car detailing business with embedded optionality through its SOFT99 stake; activist entry by Misaki Capital ensures governance pressure.


Japan Activist Briefs | Sun Corp, MegaChips, KeePer

Japanese Equity Specialist, Ortus Advisors

Andrew Jackson

Japanese Equity Specialist

Ortus Advisors

<ul>
<li>UK deal and anticipation of a positive outcome to China talks lifting positioning into risk assets.</li>
<li>Quantum computing names flying after D-wave numbers may lift Socionext.</li>
<li>Nintendo numbers obviously conservative, while Ibiden points to a bigger NVDA product mix + index upside.</li>
</ul>


UK deal and anticipation of a positive outcome to China talks lifting positioning into risk assets.
Quantum computing names flying after D-wave numbers may lift Socionext.
Nintendo numbers obviously conservative, while Ibiden points to a bigger NVDA product mix + index upside.


Japan Morning Connection: Market Risk on with Trump Telling Punters to Buy Ahead of W/E

<ul>
<li>Semi cap names higher with Trump not mentioning export restrictions on his speech to Congress.</li>
<li>Disco -7% yesterday despite no news could see dip buying as oversold SPE gets bought.</li>
<li>Names such as Daikin and Shimano may also catch a bid on the German spending news.</li>
</ul>


Semi cap names higher with Trump not mentioning export restrictions on his speech to Congress.
Disco -7% yesterday despite no news could see dip buying as oversold SPE gets bought.
Names such as Daikin and Shimano may also catch a bid on the German spending news.


Japan Morning Connection: Names with EU Exposure in Focus After Germany Pulls the Stops on Spending

Equity Long-Short, Semiconductors, Fabricated Knowledge

Douglas O'Laughlin

Equity Long-Short, Semiconductors

Fabricated Knowledge

Learn more about the world's most important manufactured product. Meaningful insight, timely analysis, and an occasional investment idea.

<ul><li>Japan is the darling of the moment. To those who haven’t kept track of the story, a series of <a href="https://www.jpx.co.jp/english/equities/improvements/follow-up/b5b4pj000004yqcc-att/dreu250000000uqc.pdf" target="_blank" rel="noopener">market reforms in January</a> encourages companies with a price-to-book ratio below one to create a plan to achieve capital efficiency.</li><li>Given that half of the companies at the time were trading below 1x P/B, this is a big deal.</li><li>And this has driven a massive wave of buybacks and changes, leading to the Nikkei finally breaking a 30-year high.</li></ul>

Japan is the darling of the moment. To those who haven’t kept track of the story, a series of market reforms in January encourages companies with a price-to-book ratio below one to create a plan to achieve capital efficiency.Given that half of the companies at the time were trading below 1x P/B, this is a big deal.And this has driven a massive wave of buybacks and changes, leading to the Nikkei finally breaking a 30-year high.

Japanese Semiconductor Stocks and AI "Winners" that Ain't So

Japan

MegaChips Corporation manufactures and markets Large-Scale-Integration (LSI) circuits and digital monitoring systems.  The Company's products are used in video games and other electronics.

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Megachips Corp (6875 JP)

MegaChips Corp (TYO 6875): Trades at ¥11,250 but Gets You ¥19,842 of After-Tax SiTime

MegaChips Corp (TYO 6875) is one of several companies in Japan with a large stake in a publicly listed company in the U.S. that dwarfs its own...

Altay Capital

Japan Activist Briefs | Sun Corp, MegaChips, KeePer

Three overlooked Japanese mid-caps; Sun Corp, MegaChips, and KeePer, reflect a broader shift in Japan’s equity landscape as activists push balance...

Mark Chadwick

Japan Morning Connection: Market Risk on with Trump Telling Punters to Buy Ahead of W/E

Positioning into risk assets with UK deal and China talks, Socionext may benefit from D-wave numbers; may be opportunity to buy into the dip for...

Andrew Jackson

Japan Morning Connection: Names with EU Exposure in Focus After Germany Pulls the Stops on Spending

Semi cap stocks rise as Trump's speech to Congress omits export restrictions, while oversold SPE sees potential dip buying and German spending...

Andrew Jackson

Japanese Semiconductor Stocks and AI "Winners" that Ain't So

Another BSPDN name and some ABF ideas. Not every AI semiconductor stock is actually winning. This edition just so happens to be Japan focused

Fabricated Knowledge

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MegaChips Corp (TYO 6875): Trades at ¥11,250 but Gets You ¥19,842 of After-Tax SiTime

MegaChips Corp (TYO 6875) is one of several companies in Japan with a large stake in a publicly listed company in the U.S. that dwarfs its own...

Altay Capital

Japan Activist Briefs | Sun Corp, MegaChips, KeePer

Three overlooked Japanese mid-caps; Sun Corp, MegaChips, and KeePer, reflect a broader shift in Japan’s equity landscape as activists push balance...

Mark Chadwick

Japan Morning Connection: Market Risk on with Trump Telling Punters to Buy Ahead of W/E

Positioning into risk assets with ​UK deal and China talks, Socionext may benefit from D-wave numbers; may be opportunity to buy into the dip for...

Andrew Jackson

Japan Morning Connection: Names with EU Exposure in Focus After Germany Pulls the Stops on Spending

​Semi cap stocks rise as Trump's speech to Congress omits export restrictions, while oversold SPE sees potential dip buying and German spending...

Andrew Jackson

Japanese Semiconductor Stocks and AI "Winners" that Ain't So

Another BSPDN name and some ABF ideas. Not every AI semiconductor stock is actually winning. This edition just so happens to be Japan focused

Fabricated Knowledge

Positioning into risk assets with UK deal and China talks, Socionext may benefit from D-wave numbers; may be opportunity to buy into the dip for...

Semi cap stocks rise as Trump's speech to Congress omits export restrictions, while oversold SPE sees potential dip buying and German spending...