Daily Brief Consumer: Macromill, Inc, TSE Tokyo Price Index TOPIX, E Mart Inc, American Eagle Outfitters, Casey’s General Stores and more

• Three pre-existing Large Shareholders have not sold down. Two new 5+% shareholders have appeared since Tender Launch. Together, their reports give them 51.7% of shares out.
• That provides them with a significantly strong implied negotiating hand. Given the midpoint of the Target Company’s Advisor’s DCF Range, I expect a bump. 
• Today the Bidder extended for 10 more days. They didn’t have the shares to close. I expect they won’t unless they bump a lot. 

• The actual ratio of tradable shares, excluding ETFs held by BoJ, is low, as a result, the number of Japanese equities available for investment by large institutional investors is limited.
• ETFs owned by BoJ may be treated as being in favor of company-proposed proposals and against shareholder-proposed proposals, thus BOJ-owned ETFs are hindering the improvement of corporate governance.
• It is good that BoJ has begun to consider an exit from ETFs, but with several variables and unknowns, it is not easy for investors to predict the timing.

• On 26 December, Reuters mentioned that E Mart could announce a major JV announcement with Alibaba Group Holding’s Korean operations that could value the JV at about $4 billion.
• The official launch of the JV is expected to take place sometime in 1H 2025. Gmarket and AliExpress Korea will become subsidiaries of this JV.
• Although this is not a done deal, this potential JV between Gmarket and AliExpress Korea is likely to have a positive impact on E Mart Inc (139480 KS). 

• American Eagle Outfitters reported a strong third quarter for 2024, supported by their strategic initiatives, particularly their “Powering Profitable Growth” strategy.
• The company experienced a 3% increase in comparable sales, building on a 5% growth the previous year, and delivered an adjusted operating income at the high end of their guidance.
• Key highlights of the quarter include progress on brand amplification, with American Eagle maintaining its position as the #1 brand in denim for the 15-to-25 age group and experiencing its sixth consecutive quarter of comparable sales growth.

• Casey’s General Stores (CASY) is well-run and has a history of growth through organic and inorganic means
• Continued store growth, margin expansion, and sound capital allocation have led to success for CASY
• CASY is positioned for further growth in a favorable industry, with potential for a low-to-mid-teens IRR over the next five years

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.