5 Comments

Enjoyed this write-up. Something to add to the JP research list. P/TBV 0.3x and potentially 8% ROE in the future would put this stock in the extremely cheap category for me.

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Wonderful writeup mate. Thanks for sharing. Keep up the good work.

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I was reminded of your nice write-up on 9776 when I recently reread The Outsiders -- John Malone's chapter talks about "The Edifice Complex" and claims there is an inverse correlation between building fancy headquarters and investor returns. Very applicable to 9776 it feels like ;-)

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Absolutely no one is looking at this nanocap. They announced in late February that one of their largest shareholders (6% holder, one of their contractors/biz partner crossholders), wants to unwind their crossholding and Sapporo Clinical will buy them all at an 11% discount. Buybacks at 0.3x p/tbv. Decent size too. Far from my favorite name in Japan, but market gave zero reaction to this news. I have a tiny tiny position.

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As my previous writeup shows, Sapporo Clinical Labs is a tiny position for me. There are a lot of opportunities in Japan and I think this is worth owning as part of a much bigger basket. It's one of the smaller sized positions for me.

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