Japan/Asia Long-Short, LightStream Research

Mio Kato

Over 15 years analysing Japanese and Asian stocks from a long/short perspective

I focus on cyclically driven sectors such as Gaming, Factory Automation and Autos

An eclectic background as a long-short analyst, upper management at a financial data startup through its listing, and as the founder of a team analysing big/alternative data, all of which supports independent and differentiated views... we hope

An appreciation for Mathematics drives the development of a "Micro-Quantamental" process which can provide a data-driven, historically-informed and semi-automated foundation upon which to layer more qualitative and judgemental analysis, thus improving investment decision-making speed and accuracy

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.

Event-Driven

<p>After the close <a href="https://www.smartkarma.com/entities/dic-corp" target="_blank" data-smartkarma-citation="entities:7343:1" rel="noopener">Dic Corp (4631 JP)</a> announced that it would purchase the Colors and Effects business of <a href="https://www.smartkarma.com/entities/basf-se" target="_blank" data-smartkarma-citation="entities:21585:1" rel="noopener">BASF SE (BAS GR)</a> for EUR985m (implying an EV of EUR1.15bn) by tapping the ¥250bn war chest it had set aside for strategic acquisitions. The company specifically stated that it would not be raising equity to fund the purchase. Bloomberg had reported discussions between the two companies on Aug 13 and even noted a potential purchase price around EUR1bn. The deal is expected to close by the end of 2020.</p>

After the close Dic Corp (4631 JP) announced that it would purchase the Colors and Effects business of BASF SE (BAS GR) for EUR985m (implying an EV of EUR1.15bn) by tapping the ¥250bn war chest it had set aside for strategic acquisitions. The company specifically stated that it would not be raising equity to fund the purchase. Bloomberg had reported discussions between the two companies on Aug 13 and even noted a potential purchase price around EUR1bn. The deal is expected to close by the end of 2020.

DIC: Purchase of BASF Colour and Effects Business A Little Expensive But Could Work With Some Growth