In today’s briefing:
- Raysum (8890 JP) Mystery Bidder Is a Hedge Fund – And That Makes It More Interesting
- Nexon (3659) | The Best Pipeline Ever
- Socionext Pre-IPO Peer Comparison – Margins Have Been Weaker than Peers, but Gap Has Been Closing
- Effective Share-Buyback Require Proven Track Record and Communication to Gain Investor Understanding
Raysum (8890 JP) Mystery Bidder Is a Hedge Fund – And That Makes It More Interesting
- Raysum Co Ltd (8890 JP) has been in a weird kind of limbo for well over a year. The Chairman/Founder resigned late last year for health reasons.
- The company needed to take action to stay listed on TSE Standard. There was a plan to transfer 60+% of the shares to a foundation, through an odd arrangement.
- Then a hedge fund stepped up and said “I’ll have 64% of the company at a near life-time high.” So now we have an interesting deal. And interesting potential future.
Nexon (3659) | The Best Pipeline Ever
- Nexon’s stock price is down -20% from the highs made in April and -30% from its highs last year.
- Nexon is a key beneficiary of the trend to immersive virtual worlds and live game operations
- The best pipeline in Nexon’s history will drive higher Free Cash Flows and shareholder returns
Socionext Pre-IPO Peer Comparison – Margins Have Been Weaker than Peers, but Gap Has Been Closing
- Socionext (6526 JP) is looking to raise up to US$285m in its Japan IPO.
- Socionext is a fabless semiconductor provider which commenced operations after integrating the system on a chip (SoC) businesses of Fujitsu Semiconductor Limited and Panasonic Holding Corporation.
- In this note, we undertake a peer comparison with its international peers, which have a similar fabless business model-type to that of Socionext’s
Effective Share-Buyback Require Proven Track Record and Communication to Gain Investor Understanding
- In my previous analysis, I found that firms with high frequency of share repurchase cancellations increased their market capitalization during the relevant period (12/2021-1/2022).
- Even though the short-term share price performances of companies that announced share repurchases were mixed, the share prices of companies with track record of several share repurchases have risen.
- It takes certain amount of time for investors to understand the track record and the capital allocation policy is consistent with the goal of increasing corporate value over the-long run.
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