Looking for Japanese smaller cap stock ideas? The Q2 edition of Uguisu Value publishes this weekend [update: published May 14]. If you’re new to my website or if you’ve been considering subscribing, now is a timely opportunity to receive updates on the 5 best ideas published to date and 3 new watch-list ideas. For important background on the newsletter see this newsletter link or click via the left menu and you can also scroll below for past posts. In short, Uguisu Value is focused on small and micro cap Japanese stocks trading at significant discounts whether or both to net asset value and/or earning power.
Four of the five best ideas remain very attractively valued and as is common with value investing can be trying on the patience of investors — they have all increased their book values and three of them trade at an even bigger discount to market value. The lone exception has encountered unexpected operating challenges that have resulted in lower revenues and a sharp drop in profitability, but the company/management has a strong track record, solid balance sheet, and there is a very valuable fixed asset component.
More details of these five companies with their latest earnings updates as well as three watch-list ideas appear in the Q2 edition of Uguisu Value.