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I sold most of my Cover. Insane run up. I think long term these names do very well and trying to 'trade' this position is likely suboptimal and likely a mistake, but I hope to buy it lower.

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Anycolor's earnings came out strong and they're projecting EPS of ¥291.3 for next year. Growth company with no net debt @ a little under 25x multiple. Slightly under the factset estimate embedded in the article though.

I remain more bullish on COVER. Relative outperformance of Cover since my comment on March 27 has been enormous. Anycolor operates more efficiently, but engagement KPIs are similar between the 2 companies. The valuation gap has narrowed tremendously though and now I think both names are worth owning.

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Update: Sold most of my Anycolor at market open today and switched to COVER Corp. Same exact business. IPO'd yesterday. Bought in @ 1350-1400 ish JPY valuing it at 88 billion JPY vs 200 b for Anycolor. Over 2x gap in price despite being similar sized audiences. Anycolor's advantage is more diversified smaller talent, but COVER has more total subscribers. COVER isn't as profitabel as they waste some $ on Metaverse nonsense, but the gap in price is too big. I think it converges.

English presentaiton materials for anyone interested.

https://cover-corp.com/ir/news/230327_5253_COVER_Materials_for_Growth_Opportunities_and_Strategies.pdf

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Anycolor's only major competitor/peer Cover Corp (Hololive) filed for IPO in Japan. Pricing should be done in late March. Excited to see how they price and would love to own if its priced anywhere near Anycolor in valuation (p/e wise). I'm bullish on this entire new media sector (especially at these prices).

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Why is Cover so expensive (48x) vs. Anycolor (19x)?

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what do you think of their secondary share offering ?

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