Bottom-Up EquitiesDaily Briefs

Equity Bottom-Up: World Co Ltd, Medical Developments International and more

In today’s briefing:

  • Japan Apparel Rethink: World Tries Diversification
  • Melco: By Far the Cheapest Bet on Recovery in the Asian Gaming Sector–With Cautions

Japan Apparel Rethink: World Tries Diversification

By Michael Causton

  • The outlook for big apparel remains uncertain; most executives are optimistic about a rebound in sales of premium apparel brands, they are also running around looking for ways to diversify.
  • Despite years of closing stores and a recent re-listing, World Co Ltd (3612 JP) remains in uncertain territory as it tries to boost sales of key brands.
  • More brands may need to close but the apparel firm is at least investing in new ventures, even if small scale.

Melco: By Far the Cheapest Bet on Recovery in the Asian Gaming Sector–With Cautions

By Howard J Klein

  • No stock in the sector among major operators has taken a bigger hit than Melco, down over 60% this year.
  • The bet is tied to whether Beijing will begin to ease travel bans and lockdowns or not before the end of this year. If so, Melco is very cheap here.
  • Performance of its Manila property, the opening of its new Cyprus resorts could carry the company safely until Macau recovery is in place.

Related tickers: World Co Ltd (3612.T), Medical Developments International (MVP.AX)

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