In today’s briefing:
- The BIG March 2023 “Wednesday Thursday Trade”
- Mitsubishi Motors (7211) | Modelling the Mid Term Plan
- Who Is More Culpable, “Independent” Directors or or Domestic Institutions that Bias To the Company?
The BIG March 2023 “Wednesday Thursday Trade”
- Every year it’s the same trade. But it isn’t really. But it kinda is. This year it is Wednesday and Thursday. There are risks to the analysis – notably allocation.
- But, ceteris paribus, it is still possibly a ¥1,580,876,450,407 buying spree to take place on one day into the close later this month. Or something close to it.
- And for a two-day period, over the last ten years, the average return is 1.60% on these two days with a 9:1 win ratio. Lots of angles here.
Mitsubishi Motors (7211) | Modelling the Mid Term Plan
- The stock is down sharply over the past few weeks as investors price in higher interest rates and weaker spending on durables
- Mitsubishi recently unveiled its mid-term plan and further details on its electrification strategy
- If management can hit its targets, the stock would have significant upside. We have our doubts
Who Is More Culpable, “Independent” Directors or or Domestic Institutions that Bias To the Company?
- Surprisingly, about half of shareholders did not vote in favor of the shareholder proposal to remove outside directors who implemented practices that were problematic in terms of corporate governance.
- Domestic institutional investors are still unwilling to oppose the company even when, as in this case, there is a clear corporate governance problem with the company.
- It’s extremely difficult for these outside directors to fully fulfill their responsibilities as independent directors on a board composed of “independent directors” who are friends brought in by top management.
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