Kawagishi Bridge Works is absurdly cheap and almost a double net net (NCAV $123m vs $62.5m market cap). Business quality is low (they manufacture steel construction products), but company has been pretty consistently profitable and has grown tangible book value at 5.46% CAGR over the last 10 years.
Kawagishi Bridge Works (TYO 5921) just announced 'measures to realize management that is conscious of capital costs and stock prices'. They announced a 3.34% buyback, 30% payout ratio, and some other iniaitives. Mostly small, but this is an excellent first step. Should go up nicely in JP trading.
Quite down here in the comments. While I've been pounding the table on these super deep value net nets in Japan, there really hasn't been much interest in these names, which to me is a good sign. When fintwit jumps on the bandwagon, the trade is likely done. For now, I'm content owning names like this one!
I wonder how you visualize an exit here? Agreed it’s dirt cheap but if management is not willing to return capital to shareholders and the business is low quality, what’s going to be a catalyst to realize value? I’m a big believer in not needing a catalyst usually, I generally follow Joel Greenblatt’s framework that if you do your valuation work well the market agrees with you in 3 years 90+% of the time, but this seems different. Any thoughts?
Kawagishi Bridge Works (TYO 5921) just announced 'measures to realize management that is conscious of capital costs and stock prices'. They announced a 3.34% buyback, 30% payout ratio, and some other iniaitives. Mostly small, but this is an excellent first step. Should go up nicely in JP trading.
https://contents.xj-storage.jp/xcontents/AS70222/a7deccf6/b1b4/4199/8eb8/e50b89f19f87/140120240226542264.pdf
Quite down here in the comments. While I've been pounding the table on these super deep value net nets in Japan, there really hasn't been much interest in these names, which to me is a good sign. When fintwit jumps on the bandwagon, the trade is likely done. For now, I'm content owning names like this one!
Thanks for sharing !
Interesting idea.
I wonder how you visualize an exit here? Agreed it’s dirt cheap but if management is not willing to return capital to shareholders and the business is low quality, what’s going to be a catalyst to realize value? I’m a big believer in not needing a catalyst usually, I generally follow Joel Greenblatt’s framework that if you do your valuation work well the market agrees with you in 3 years 90+% of the time, but this seems different. Any thoughts?
Thanks.