Process Ultimately Started Due to TSE Reforms Around Unwinding Cross Shareholdings. A competitive bidding process was held. Expect more deals in the future.
The first tender offer in the deep value port! CB Group Management (TYO 9852) a cheap net net. Stock price: ¥5,300. Tender price: ¥8,058. 52% premium.
It traded today at:
P/TBV: 0.4x
P/E: 4.8
Buyout is from family/parent co. I own only 300 shares. Still a good profit. Yes, the price is wrong. Yes, it's too cheap, but I'm not greedy. Still a win. Hopefully some shareholders make some noise and get the price higher.
Buyout price is 7x P/E and 0.65x P/B.
If we back out net current assets. P/E is ~3.
If we also back out investment securities, P/E is 1. It's too cheap, but still a decent premium.
Have not written about this one. One of the ~100 names in the basket.
Thanks that's helpful. Perhaps too many to do anything with... Though in terms of similarities with Chuoh 3952, in terms of size, %holding, sales to parent, not being on their corp governance list of strategic holdings, and showing a potentially embarrassing price/book, and cash .. would you say maybe Trinity (6382), Kyowa Leather (3553) ?
The lack of such an easy vehicle to invest in these opportunities is precisely why such an opportunity exists!
The second best way to do it lazily is to buy Hikari Tsushin which has a stake in a lot of cheapish JP value stocks, but not nearly as cheap as being able to build your own basket. They have some liquidity constraints too and too much capital to be able to really take advantage of the best opportunities.
The first tender offer in the deep value port! CB Group Management (TYO 9852) a cheap net net. Stock price: ¥5,300. Tender price: ¥8,058. 52% premium.
It traded today at:
P/TBV: 0.4x
P/E: 4.8
Buyout is from family/parent co. I own only 300 shares. Still a good profit. Yes, the price is wrong. Yes, it's too cheap, but I'm not greedy. Still a win. Hopefully some shareholders make some noise and get the price higher.
Buyout price is 7x P/E and 0.65x P/B.
If we back out net current assets. P/E is ~3.
If we also back out investment securities, P/E is 1. It's too cheap, but still a decent premium.
Have not written about this one. One of the ~100 names in the basket.
Thanks for the article.
So are there any other Toyota holdings where the own controlling %'s yet to be unwound? Or similar for Hitachi, Mitsubishi etc ?
Yes. You can see all of Toyota's stock holdings here (There are a lot):
https://www.buffett-code.com/shareholder/dd58b412b71c0479550e2341d376c93c
Thanks that's helpful. Perhaps too many to do anything with... Though in terms of similarities with Chuoh 3952, in terms of size, %holding, sales to parent, not being on their corp governance list of strategic holdings, and showing a potentially embarrassing price/book, and cash .. would you say maybe Trinity (6382), Kyowa Leather (3553) ?
I wish there simply was a JDV etf :P
The lack of such an easy vehicle to invest in these opportunities is precisely why such an opportunity exists!
The second best way to do it lazily is to buy Hikari Tsushin which has a stake in a lot of cheapish JP value stocks, but not nearly as cheap as being able to build your own basket. They have some liquidity constraints too and too much capital to be able to really take advantage of the best opportunities.
Hello! Great article.
What sources do you currently use to screen stocks and find reliable information?
I use Koyfin for screening.
Thanks! Most appreciated.
*up 150%, it’s 250% of the price at the time.
Argh. Bloody Nagoya. I stumbled across Chita Kogyo 5983 a couple of years ago and was desperate to buy it, but couldn’t.
Looks like it’s up 250% since then. 😓😂
Not sure how it’d look valuation wise after than run but might be worth a look if anyone can trade it.