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)

<h3>What’s Original?</h3>
In this original, we have discussed some of the key aspects highlighted in Kishida’s policy statements along with the current status of these policies and companies that are likely to benefit.

What’s Original?
In this original, we have discussed some of the key aspects highlighted in Kishida’s policy statements along with the current status of these policies and companies that are likely to benefit.

Kishida as Prime Minister: The Path Ahead

Equity Analyst, Event-driven, Quiddity Advisors

Janaghan Jeyakumar, CFA

Equity Analyst, Event-driven

Quiddity Advisors

Pan-Asia Catalysts/Events

Event-Driven

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. 

Mothers-listed <a href="https://www.smartkarma.com/entities/teno-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:29724:1" rel="noopener">Teno. Holdings Co Ltd (7037 JT)</a> announced on 30th October 2020 they had <a href="https://www.teno.co.jp/ja/news/news-public-notice/auto_20201030412366/pdfFile.pdf" target="_blank" rel="noopener">received approval</a> to move to the First Section of the Tokyo Stock Exchange as of 12th November 2020. In conjunction, they also announced a <a href="https://www.teno.co.jp/ja/news/news-public-notice/auto_20201030412352/pdfFile.pdf" target="_blank" rel="noopener">tachiaigai bunbai</a> equity offering in order to satisfy some of the Section Transfer Requirements.  TSE1 reassignment triggers inclusion into the TOPIX Index and the Inclusion Event can be expected to be at the close of trading 29th December 2020. <a href="https://www.smartkarma.com/entities/teno-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:29724:1" rel="noopener">Teno. Holdings Co Ltd (7037 JT)</a> provides childcare services in Japan. They operate a nursery school and a public childcare facility and also provide other services such as in-hospital childcare and after-school childcare on a contractual basis. They also offer babysitting services. This is not a big company with global ambitions.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.

Mothers-listed Teno. Holdings Co Ltd (7037 JT) announced on 30th October 2020 they had received approval to move to the First Section of the Tokyo Stock Exchange as of 12th November 2020. In conjunction, they also announced a tachiaigai bunbai equity offering in order to satisfy some of the Section Transfer Requirements.  TSE1 reassignment triggers inclusion into the TOPIX Index and the Inclusion Event can be expected to be at the close of trading 29th December 2020. Teno. Holdings Co Ltd (7037 JT) provides childcare services in Japan. They operate a nursery school and a public childcare facility and also provide other services such as in-hospital childcare and after-school childcare on a contractual basis. They also offer babysitting services. This is not a big company with global ambitions.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. 

Japan

teno. Holdings Company Limited offers nursing and caring services. The Company provides child caring, housekeeping, after school child activities arrangement, and other services. teno. Holdings provides its services throughout Japan.

teno. Holdings Co Ltd (7037 JT)

Kishida as Prime Minister: The Path Ahead

In this original, we have discussed some of the key aspects highlighted in Kishida’s policy statements along with the current status of these...

Mio Kato

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 (7037 JP): Teno Holdings

Teno. Holdings is a small childcare and pre-school education business based in Fukuoka. They plan on growing, but it may be difficult to grow into...

Janaghan Jeyakumar, CFA