Investing in Japan

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Entries from August 2008

Japanese Stocks with ADRs Trading Below Book Value

August 27th, 2008 · 3 Comments

In response to an article I published yesterday, “Goldman forecasts recovery in Japanese stocks from mid-2009″, which was carried on Seeking Alpha, a reader asked for some “big cap” stocks trading at/near book value, among other things. Following is a quick list of select stocks with ADRs.
Trading below book value
FUJI FILM (4901) (FUJI) — 0.89x […]

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Tags: Valuation

Goldman forecasts recovery in Japanese stocks from mid-2009

August 26th, 2008 · No Comments

In a report issued today and covered by Reuters (see below for clip and link to Japanese original), Goldman Sachs says it sees a possible full recovery for Japanese stocks from mid-2009. On one hand, GS warns that a further slowdown in the global economy represents further downside risk for Japanese stocks given the […]

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Tags: Earnings · Shareholder Value

Nikkei rallies but faces resistance in anemic trading

August 25th, 2008 · No Comments

Not a bad way to start the week, but the 1.7% N225 (stock average; futures +1.6%) rally to 12,878 (and 12,870) fell short of the 12,920 N225 futures close Friday in Chicago. Both equities and futures met resistance at 12,950 and trading activity (volume and turnover) for the broader TOPIX was anemic. As expected, […]

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Tags: Market Summary

Milking Mitsubishi UFJ

August 18th, 2008 · No Comments

Below are some additional thoughts on the latest MUFG-UB offer (these comments were originally posted in response to an article published by Reuters; edited for style/formatting).
UB’s (UB: 0.00 0.00%) Special Committee is very opportunistic and knows what it is doing. It has effectively taken its minority stake hostage vis a vis its board representation and […]

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Tags: Hedge Funds · M&A · Shareholder Value

MUFG Now Really Overpaying for Union Bank, Oh Well (Shikataganai)

August 18th, 2008 · 1 Comment

$58 a share — no! $63 a share — no! $73 a share — oh, sure, might as well, especially in this market. Hats off to Mr. Farman and company for helping the little guys at Union Bank (UB: 0.00 0.00%) get paid. Still scratching your head about what Mitsubishi UFJ (MTU: 5.09 -7.12%) […]

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Tags: M&A · Shareholder Value

Mitsubishi UFJ Overpaying for UnionBanCal

August 12th, 2008 · 1 Comment

This is not a bad deal, at all, for existing (non-MUFG) UnionBanCal (UB: 0.00 0.00%) shareholders: a decent premium pushing the stock to a new 52wk high, amidst ongoing market woes, and not to mention UB’s last quote of $65+, which is above the $63 bid by Mitsubishi UFJ Financial Group (MTU: 5.09 -7.12%). Now, […]

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Tags: M&A · Shareholder Value

Orix-Saison: About Time or Atonomatsuri?

August 5th, 2008 · No Comments

Shares of Credit Saison (8253) jumped 11%, while Orix (IX: 30.03 -4.30%) (8591) rose a muted 3%, on the report of merger talks. (See Reuters clip below). HOWEVER, shares of both have fallen sharply over the past year (there’s even more red over the past two years) compelling one to wonder why an alliance wasn’t […]

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Tags: M&A · Shareholder Value

‘I scratch your back, you scratch mine’

August 5th, 2008 · No Comments

Mixed signals, as always, from Japan. Activist investors are making some ground, most notably in Steel Partners v. Aderans (8170). Still, the climate for M&A and shareholder value unlocking investors is not made any easier by more expansive cross-shareholdings. A more concerted effort is needed by METI, FSA, TSE and the business lobbies. (See Reuters […]

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Tags: Hedge Funds · Shareholder Value