Shares Are Oversold - They Fell Significantly After 1Q Results and Are Now off 50% Year to Date

Director, Pearl Hill Advisors

Nicholas Tanner

Director

Pearl Hill Advisors

Equity Bottom-Up

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<li>As expected, the company went into the red for the first half. It lost Y17.7bn at the operating level for the first half.  Full year operating profit to March 2017 has been revised down to a loss of Y9.5bn from a profit of Y12.2bn earlier.</li>
<li>This loss is due to a Y24bn provision relating to its faulty gas springs. The rest of the business is fine, thus the expected Y8bn operating profit expected in the second half. After providing for Y8.5bn last year for faulty springs relating to Nissan's recall…</li>
</ul>


As expected, the company went into the red for the first half. It lost Y17.7bn at the operating level for the first half.  Full year operating profit to March 2017 has been revised down to a loss of Y9.5bn from a profit of Y12.2bn earlier.
This loss is due to a Y24bn provision relating to its faulty gas springs. The rest of the business is fine, thus the expected Y8bn operating profit expected in the second half. After providing for Y8.5bn last year for faulty springs relating to Nissan's recall…


Showa's Provisioning Done. The Company Can Now Move Forward.

Showa Corp

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