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>Takasago Tekko (TYO 5458) is practically a net-net (and is one if you include investments) trading at ~9.5x LTM earnings (7.7x NTM) and has rental real estate worth ¥3.8 billion (more than the entire market cap) using the company’s own fair value disclosure.</li><li>The story gets interesting when we consider the massive Itabashi Factory Land (36,009 sqm in Itabashi-ku Tokyo) which sits on the balance sheet at ¥2 million ($12,800 USD) but is conservatively worth ¥8 billion ($51 million).</li><li>This is likely worth much more based on comps I found but we’ll use ¥8 billion to be safe. The facility was likely acquired around 1937, which is why it’s carried at near nothing.</li></ul>

Takasago Tekko (TYO 5458) is practically a net-net (and is one if you include investments) trading at ~9.5x LTM earnings (7.7x NTM) and has rental real estate worth ¥3.8 billion (more than the entire market cap) using the company’s own fair value disclosure.The story gets interesting when we consider the massive Itabashi Factory Land (36,009 sqm in Itabashi-ku Tokyo) which sits on the balance sheet at ¥2 million ($12,800 USD) but is conservatively worth ¥8 billion ($51 million).This is likely worth much more based on comps I found but we’ll use ¥8 billion to be safe. The facility was likely acquired around 1937, which is why it’s carried at near nothing.

Takasago Tekko (5458): A Profitable ¥3.3bn Nanocap near Net-Net

Japan

TAKASAGO TEKKO K.K., affiliated with Nippon Steel, manufactures stainless hoops and strip hoops.  The Company also manufactures rolled iron core, chains, and rims through its subsidiary.

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Takasago Tekko Kk (5458 JP)

Takasago Tekko (5458): A Profitable ¥3.3bn Nanocap near Net-Net

Takasago Tekko (TYO 5458) is practically a net-net (and is one if you include investments) trading at ~9.5x LTM earnings (7.7x NTM) and has rental...

Altay Capital

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