Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

Independent Leading Corporate Governance Research

Metrical Inc

METRICAL INC. is an independent leading Corporate Governance research firm in Japan where Corporate Governance is increasingly recognized as an important element on corporate management in these days. Thus, CG research and solutions would become an essential component of global capital markets and play important to contribute to transparency of the markets and maximize shareholders’ value in Japan. 

METRICAL INC. provides Corporate Governance research and analysis including rating services, and  also offers investment research and IR services with solutions and customized profound research on CG and IR issues.

<ul>
<li>Wouldn't the shareholders of Mitsubishi Chemical want to either TOB for the growth of the subsidiary or invest the cash from the sale of shares in a value-generating business?</li>
<li>It's difficult to exclude the influence of the parent company in business decisions that impact significantly on the parent's earnings and shareholding. Is continued parent-subsidiary listing desirable for subsidiary's shareholders?</li>
<li>The management of Nippon Sanso wants to continue the parent-subsidiary listing, but their small shareholding may make it difficult to manage the company from the same perspective as the shareholders.</li>
</ul>


Wouldn't the shareholders of Mitsubishi Chemical want to either TOB for the growth of the subsidiary or invest the cash from the sale of shares in a value-generating business?
It's difficult to exclude the influence of the parent company in business decisions that impact significantly on the parent's earnings and shareholding. Is continued parent-subsidiary listing desirable for subsidiary's shareholders?
The management of Nippon Sanso wants to continue the parent-subsidiary listing, but their small shareholding may make it difficult to manage the company from the same perspective as the shareholders.


Ownership of Company Stock Is a Key in Managing the Company with the Same Goals as Shareholders

Japan/Asia Long-Short, LightStream Research

Mio Kato

Japan/Asia Long-Short

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.

Thematic (Sector/Industry)

<p>There are signs of movement in Japan in order to try and hit its 2050 carbon neutrality goal. The clearest sign was the recent restart of an old nuclear reactor and nuclear power is likely to be a key contributor towards this goal, however, in addition to solar, onshore and offshore wind and geothermal, on a timeline that long, hydrogen may actually be the key play here.</p>

There are signs of movement in Japan in order to try and hit its 2050 carbon neutrality goal. The clearest sign was the recent restart of an old nuclear reactor and nuclear power is likely to be a key contributor towards this goal, however, in addition to solar, onshore and offshore wind and geothermal, on a timeline that long, hydrogen may actually be the key play here.

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

US Treasury (10 Yr Generic) / Technical Analysis

<ul>
<li>In our two previous Int'l Compass reports (Aug. 18 &amp; 24) we discussed that we were buyers on the pullback to the major $93 support level on MSCI ACWI (ACWI-US).</li>
<li>$93 on ACWI is 1+ year base support and a level that coincides with the 10-month uptrend. We remain bullish as long as the ACWI-US is above $93.</li>
<li>$93 on ACWI-US is likely the low for this pullback as long as the 10-year Treasury yield and DXY can stay below respective resistance levels (4.3%-4.35% and $103.70-$105.70).</li>
</ul>


In our two previous Int'l Compass reports (Aug. 18 &amp; 24) we discussed that we were buyers on the pullback to the major $93 support level on MSCI ACWI (ACWI-US).
$93 on ACWI is 1+ year base support and a level that coincides with the 10-month uptrend. We remain bullish as long as the ACWI-US is above $93.
$93 on ACWI-US is likely the low for this pullback as long as the 10-year Treasury yield and DXY can stay below respective resistance levels (4.3%-4.35% and $103.70-$105.70).


Further Declines in DXY, Sovereign Yields May Provide More Fuel for a Rally in Global Equities

iShares MSCI ACWI ETF / Technical Analysis

<ul>
<li>Global equities are under some pressure after Fitch downgraded the United States' credit rating to AA+ from AAA.</li>
<li>We expect that this is a normal 3%-6% pullback to the 50-day MA or major $93 support level on the MSCI ACWI <a href="https://www.smartkarma.com/entities/ishares-msci-acwi-etf" target="_blank" data-smartkarma-citation="entities:24402:1" rel="noopener">iShares MSCI ACWI ETF (ACWI US)</a> .</li>
<li>$TNX is below 4.1%-4.3% and DXY remains in an 8-month downtrend; as long as this remains true, we'd buy on a pullback to the 50-day MA and/or $93 on ACWI-US</li>
</ul>


Global equities are under some pressure after Fitch downgraded the United States' credit rating to AA+ from AAA.
We expect that this is a normal 3%-6% pullback to the 50-day MA or major $93 support level on the MSCI ACWI iShares MSCI ACWI ETF (ACWI US) .
$TNX is below 4.1%-4.3% and DXY remains in an 8-month downtrend; as long as this remains true, we'd buy on a pullback to the 50-day MA and/or $93 on ACWI-US


Normal Pullback, or Something More?; Watching Resistance on DXY and 10-Yr Treasury Yield; Value Buys

Japan Specialist

Mark Chadwick

Equity Bottom-Up

<ul>
<li>Investors have completely ignored “The New MCG”. If management can hit EBITDA targets, we see over 50% upside for the stock</li>
<li>Rapid cost cuts of Y135 billion will be a catalyst for the share price</li>
<li>Transformation to leaner, more focused group with strategic growth in EVs, hydrogen, semicon and health</li>
</ul>


Investors have completely ignored “The New MCG”. If management can hit EBITDA targets, we see over 50% upside for the stock
Rapid cost cuts of Y135 billion will be a catalyst for the share price
Transformation to leaner, more focused group with strategic growth in EVs, hydrogen, semicon and health


Mitsubishi Chemical (4188) | Unlocking Value – 50% Upside

Japan

Nippon Sanso Holdings produces various kinds of industrial gases including oxygen, argon, and nitrogen.  The Company also manufactures frozen foods and thermos.

Nippon Sanso Holdings (4091 JP)

Ownership of Company Stock Is a Key in Managing the Company with the Same Goals as Shareholders

I would like to discuss the issues on the December 11 Nikkei article, "Nippon Sanso Holdings, Filial Son's Heartbeat: The Market Recommends...

Metrical Inc

Japan Hydrogen Plays

As interest continues to build in Japan's hydrogen economy plans it is still difficult to identify attractive thematic plays on the idea... except...

Mio Kato

Further Declines in DXY, Sovereign Yields May Provide More Fuel for a Rally in Global Equities

We continue to believe $93 on $ACWI is likely the low for this pullback as long as the 10-year Treasury yield $TNX and $DXY can stay below their...

Vermilion Research

Normal Pullback, or Something More?; Watching Resistance on DXY and 10-Yr Treasury Yield; Value Buys

Normal Pullback, or Something More for global equities?; Watch Resistance on $DXY and 10-Yr Treasury Yield; Value Buys in Consumer Discretionary...

Vermilion Research

Mitsubishi Chemical (4188) | Unlocking Value – 50% Upside

Investors have completely ignored “The New MCG”. If management can hit EBITDA targets, we see over 50% upside for the stock

Mark Chadwick