AltayCap @AltayCapital Twitter profile

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AltayCap

@AltayCapital

2 years

@cpurkiser @ruima It's an employee owned company.

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AltayCap

@AltayCapital

1 year

Nippon Ichi Software Inc (TYO: 3851) is A Deep Value, Profitable, and Growing Japanese Video Game Developer That’s Almost a Net-Net $44m mcap $40m in net cash+securities This values biz @ ~$4.3m (less than 1x net income) Founder Now in Charge I'm long.

Nippon Ichi Software Inc - A Deep Value, Profitable, and Growing Japanese Video Game Developer...

Nippon Ichi Software Inc (NiS) is a $44m market cap video game developer based in Japan and trades in Tokyo under the ticker TYO: 3851. It is extremely cheap, growing, and profitable with TTM P/E of...

altaycap.substack.com

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AltayCap

@AltayCapital

7 months

Every time I look at PayPal $PYPL and get tempted to buy it, I remind myself they paid $4 billion for Honey, a browser add on for coupons. Core biz is okay, but numerous awful acquisitions.

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AltayCap

@AltayCapital

4 months

For all the $BABA baggies...

A.J. Button

@AJButton2

4 months

Investors believe that Chinese tech stocks are currently worth less than March 2020 when: * China's economy was shut down. * Corporate earnings were lower. * Multiples were higher. What do you think? Is the Taiwan risk bigger than COVID?

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AltayCap

@AltayCapital

1 year

I built myself a mini ETF of extremely cheap JP names with the following characteristics: Market Cap Average: $59.86M EV/Ebitda (LTM): 2.1x P/TBV: 0.5X P/E: 6.5X TBV CAGR (3Y): 8.49% TBV CAGR (5Y): 8.01% TBV CAGR (10Y): 7.24% Yield: 2.72% Components: 43

Super Cheap Japanese Stocks - 43 Names I Own as a Basket (0.5x P/TBV, 2.1x EV/EBITDA)

Taking advantage of Tokyo Stock Exchange's push to close the price to book discount of listed securities

altaycap.substack.com

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AltayCap

@AltayCapital

10 months

Another reason I'm extremely bullish on cheap Japanese stocks is that they can be funded with 0.75% JPY margin debt @ IBKR. That's ultimately my hurdle rate. I think I will far exceed it.

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AltayCap

@AltayCapital

8 months

These 3 are all down 99% from this tweet. Shorting is hard, but shorting outright frauds/scams well after initial pumps works. Want to find similar easy shorts? Look up any stock Boustead Securities has IPO'd and short it 1 year after IPO. Average return of Boustead IPOs? -90%+

AltayCap

@AltayCapital

2 years

I'm starting to think long indexes and short borderline frauds is a great way to make alpha. Up a ton (% wise) on shorting $SLGG $CRTD $EBET. Only problem is getting reasonable borrow. Sizing is also tiny to avoid meme risk. These are guaranteed zeroes $ total shit run by conmen

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AltayCap

@AltayCapital

9 months

Hot take: U.S. Listed Chinese stocks are all grossly over valued. Why are people gushing over Alibaba when there are literally 50+ companies in HK with biz in China trading @ 0.1x P/TBV? Baba stock is only 'cheap' if you never looked at HK listed names. A short 🧵 1/3

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AltayCap

@AltayCapital

2 months

So many weird Japanese small caps. Zappallas (TYO 3770) for example is a $40m mcap Fortune Telling as a Service company. No joke. Uber model for fortune telling + a physical store! Shutting down unprofitable U.S. biz and buying back stock. Turnaround working 10x op inc core biz

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AltayCap

@AltayCapital

5 months

Nippon Steel is in the news because of U.S. Steel, but they have 2 listed subsidiaries that are dirt cheap: Sanyu (TYO 5697) and Nichia Steel (TYO 5658). Both are net nets and trade @ 0.3x p/tbv, but Nichia has bought back stock and owns 1.1x its mcap in Investment Securities.

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AltayCap

@AltayCapital

5 months

Nissin Corp (TYO 9066) - inexpensive logistics co outright saying they're going to buy back 20% of their shares and a decent dividend. $350m+ mcap. CC: @Franck29589715 who shared this name with me. He's a sharp investor worth a follow. I own a tracking position only currently.

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AltayCap

@AltayCapital

1 year

Imagineer (TYO: 4644) is A Deep Value, Profitable, and 3.4% Yielding Net-Net Japanese Game Developer With 17+ Years of Dividend History $77m mcap $84m in net cash+receivables TTM P/E 10.15 Positive Carry Founder owns ~48.8% I'm long.

Imagineer - A Deep Value, Profitable, and 3.4% Yielding Net-Net Japanese Game Developer With 17+...

Imagineer is a $77m market cap video game developer based in Japan and trades under the ticker TYO: 4644. They have a long history of profitability, are a net-net, and have a TTM P/E of 10.15. They...

altaycap.substack.com

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AltayCap

@AltayCapital

5 months

Put up the entire Japanese Portfolio up on SS with position sizes and some year end thoughts on why I remain bullish. (Published Jan 1)

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AltayCap

@AltayCapital

2 months

Another reason why I'm bullish on dirt cheap Japanese stocks - borrowing JPY on Interactive Brokers costs me 0.75% per year.

Kevin Carpenter

@kejca

2 months

According to a new filing, Berkshire Hathaway plans to issue more yen-denominated bonds in the near future. (h/t @rationalwalk ) Could be the prelude to Warren Buffett increasing his investments in the five leading Japanese trading companies even further.

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AltayCap

@AltayCapital

10 months

Japan 🇯🇵 is full of quality net nets with growing revenues/profits that NO ONE is talking about. Take Parker Corp (TYO 9845). Since 1992 they only lost money during the GFC (and barely!) 3% Dividend BVPS 5.78% 5Y CAGR EPS 0.33% 5Y CAGR Rev 2.8% CAGR 0.5x P/TBV 7x PE (LTM)

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AltayCap

@AltayCapital

5 months

Last post of the year. Covered Nichia Steel (TYO 5658), Sanyu (TYO 5697), Sanko (6964), and Marufuji Sheet Piling (8046). Tweeted about some of these before, but put some numbers down outlining just how cheap they are. Most are double net nets at 0.3x p/tbv.

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AltayCap

@AltayCapital

1 year

Besides net-nets, Japan has some cheap consistent growers as well. Here's a name I'm long @ 0.5x TBV: Keihin Co (TYO 9312). 3.9x P/E 3% Dividend FCF/NI positive for 10+ yrs They own warehouses and do air freight/sea logistics domestically and globally. Look at these metrics:

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AltayCap

@AltayCapital

5 months

"Those opportunities don't exist anymore". Disagree. Today's dirt cheap Japanese net nets will be called "obvious" in the future and many will lament they missed it.

Chase the Capital Allocator

@chasericker3

5 months

So Walter Schloss used to hold 30+ stocks below working capital w/ low debt and he did great? Ok Well guess what? Those opportunities don't exist anymore like they used to. You might get 2-4 things a year like they used to: if you're lucky What they don't tell you is that the

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AltayCap

@AltayCapital

20 days

Okayamaken Freight (TYO 9063) - A Nanocap Logistics Co With A Lot of Undervalued Land at 0.3x P/B, 9x P/E, and 14 yrs of profitability. Last yr they sold 2 assets with a BV of ¥172m for ¥2.552m. Still ¥18b of land on the balance sheet. P/E: 9.12 P/B: 0.32 Yield: ~2% Mcap: ¥7.2b

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AltayCap

@AltayCapital

9 months

After underperforming significantly earlier in the year, very pleased with +13.86% YTD being only net 50% long and with zero big tech exposure. Biggest contribution: JP basket, MLP funds, Mexican Airports, CAAP, NKE short Biggest losers: index ETF shorts, CROX (still up a lot).

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AltayCap

@AltayCapital

10 months

This might be the cheapest name in my portfolio. Nankai Plywood (TYO 7887). 0.22x P/B Book value: ¥23,917/share. Price: ¥5,370. Market Cap: $36m usd Total current assets: $130m. Total liabilities: $60m 2.8% Dividend BV CAGR 5y: 4.6%, 10yr: 3.7% P/E LTM: 2.7x / Forward P/E: 8.6

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AltayCap

@AltayCapital

8 months

Teddy leaving out the best part, this is also a net-net with $477M in current assets vs $155m in total liabilities and $290m mcap, valuing the biz at -$58m.

J.S.

@japanstonks

8 months

Murakami Corporation $7292.JP ($300mm mcap), trading at 8.8x NTM P/E and 0.5x PB, is Japan's largest rearview mirror manufacturer (No. 5 in the world per straitsresearch) is like a mini $GNTX (14.6x PE, 3.5x PB) of 🇯🇵. Similar to GNTX it sells digital rearview mirrors, and it

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AltayCap

@AltayCapital

1 year

JP Market is too cheap. Lots of neat names. Here's one (I'm long): Taiyo Kisokogyo Co (TYO: 1758): They bought back a little over 8% of their outstanding shares @ 6500 JPY per share on Mar 17. 1.2x EV/EBITDA. 7.6x p/e 0.5x Book Growing Revenue, profits, book ~$32m mcap

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AltayCap

@AltayCapital

4 months

I dont get the hate. It's a risky portfolio, but top 2 positions have done amazing. Adjust for lira depreciating 65% you still way ahead. Coal has done great too. I also own some both these names in Turkey. (Along with Mavi, Ulker, koc) Bought over a year ago too.

Buyback Capital

@Larryjamieson_

4 months

🤮

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AltayCap

@AltayCapital

16 days

Did a short write up on Nissin Corp (TYO 9066). This is one of the cheapest + returning cash names in Japan that's doing everything right. They bought back a ton of stock, paying out big dividends (4% of equity), selling down cross shareholdings, and only had 2 losses in 40 years

AltayCap

@AltayCapital

19 days

Nissin (TYO 9066) limit up 2 days & down 5.5% today. They bought back ~24% of outstanding shares from cross holders and doubled dividend. Here's what the # s look like today: 0.7x book (6,008/share) 6x EPS (701 eps) 4.6% diviend (likely higher, they said 4% DOE) Still cheap.

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AltayCap

@AltayCapital

3 months

Asahi Kagaku Kogyo (TYO 7928) - A $12m Japanese Net Net That Owns Land Near Shanghai bought 20+ yrs ago Worth ~5x its Market Cap. It's deep value, but a name I'm not v excited about. I did a short write up on the SS. No one has written it up or tweeted it, so def under the radar.

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AltayCap

@AltayCapital

1 year

Embracer Group down 36% on awful numbers. This is easily the worst mid/largeish gaming company in the world. Rolling up tons of studios, zero synergies, and reporting losses. Been neg on this name for 2 years. Never shorted though. Good FT article on them

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AltayCap

@AltayCapital

8 months

People crying uncle about staples sell off when $HSY and $KO trading at 20x forward P/E and 21x for $PEP. -6% volume for Pepsi's biggest division. These aren't close to cheap. Ozempic in 10 years will ding terminal values too. 20% of adults are 70% of ice cream consumption!

Corry Wang

@corry_wang

8 months

6/ This 2017 paper looks at 22 more CPG categories: the top 20% of US adults account for… 70% of ice cream consumption 75% of coffee consumption 77% of soda consumption 87% of cigarette consumption

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AltayCap

@AltayCapital

1 year

Yamada Corp (TYO 6392) boring JP Industrial that manufactures pumps. Slow and steady growth. I'm long. $52m mcap $43m NCAV 42% sales JP / 38% USA 3.6% Dividend (with a 10+ yrs of divy growth) 0.5 p/tbv 5 p/e 10 year Book CAGR 11.62% 10 Year Price Total Return CAGR: 16.17%

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AltayCap

@AltayCapital

4 months

In Tokyo and I'm seeing a lot of this nanocap's carts being used by small businesses and delivery people. This is far from a sexy business, but it's almost a double net net. Also realized recently HIKARI TSUSHIN (9435) owns 7.48%

AltayCap

@AltayCapital

1 year

Nansin Co (TYO 7399), a net net is up 16% today. I own it as its on the extreme end of the cheapness scale at 0.3x TBV. $25m mcap Total Current Assets: $83.7m Total Liabilities: $34.6m Net current assets $49.1m vs $25m mcap. 10 year Revenue CAGR 1.5%. Book value CAGR 5.7%.

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AltayCap

@AltayCapital

23 days

Wow. Didn't think Nissin 9066 could buy back all ~24% in one go... but they did. Likely from cross shareholders. 23.61% buy back already done. Impressive!

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AltayCap

@AltayCapital

10 months

Sapporo Clinical Laboratory Inc (TYO 9776) - Cheap Yet Consistently Profitable Nanocap @ 0.3x P/TBV. Writeup on SS (Free. Link in Profile) Bookvalue CAGR 10yr: 7% Revenue CAGR 10yr: 2.4% MCap $24m P/E (TTM): 7x 2.2% Dividend No one has written it up before. Totally ignored Co!

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AltayCap

@AltayCapital

7 months

Buffet's mystery stock is obviously $CROX. 2 strong days in a row. He's that age where he can appreciate comfy shoes and like the rest of us, he's embarrassed by them!

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AltayCap

@AltayCapital

5 months

Larger cap than most names I've looked at in Japan, but: ✅ Growing EPS (12.7x p/e) ✅ Buying back stock regularly + increasing dividends ✅ Corporate homepage similar to Berkshire Hard to lose in the long run.

David Orr

@orrdavid

5 months

Japan is very illiquid. $9435 is a conglomerate with 7.5 USD billion market cap. I just bought a $250k position - tiny relative to market cap - and it moved the market up .5%. Also, I used to hate buying stocks with charts that looked like this. Now I prefer them.

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AltayCap

@AltayCapital

5 months

+19.85% YTD. No big tech. Net long 30-70% throughout the year. Ended net long 70% Biggest detractors: index shorts. H1 was hard. H2 was great. JP port had some great performers. Will likely put up a SS post later.

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AltayCap

@AltayCapital

10 months

I tweet a lot about cheap JP names but Airports are a fascinating asset class. I'm long the 3 MX names OMAB / PAC / ASR + The Argentina name CAAP. Combined 13% portfolio weight. Ian has been an excellent resource for these names on his SS / SA.

Ian Bezek

@irbezek

10 months

Our favorite South American airport group growing revenues at 27% topline, selling for 6x EV/EBITDA and a single-digit forward P/E ratio after a huge earnings beat. $CAAP

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AltayCap

@AltayCapital

10 months

Japanese companies are acknowleding the book value discounts and saying they will work on addressing it. Some companies are more serious than others, but here's Keihin Co (TYO 9312). This is from latest annual report released June 29. It was not mentioned in their prev report.

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AltayCap

@AltayCapital

6 months

Tiny position in this nanocap $10.7m mcap net net Asaka Industrial (TYO 5962). They were the first company to "commercialize shovels" in Japan in 1893. Usual cheapness. 9,394 m2 of land carried at $9,500 usd value. 0.4x book. I own mostly as a novelty (900 shares) + 2.6% dividend

No Called Strikes Investing

@NCSI_SA

6 months

What is the smallest market cap company in your portfolio?

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AltayCap

@AltayCapital

5 months

Double net-net Nichia Steel (TYO 5658) slowly buying back stock and on Tokyo Stock Exchange's list of companies disclosing policy to address discount. These buybacks, although small, are extremely accretive.

AltayCap

@AltayCapital

5 months

Nippon Steel is in the news because of U.S. Steel, but they have 2 listed subsidiaries that are dirt cheap: Sanyu (TYO 5697) and Nichia Steel (TYO 5658). Both are net nets and trade @ 0.3x p/tbv, but Nichia has bought back stock and owns 1.1x its mcap in Investment Securities.

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AltayCap

@AltayCapital

2 years

@SethMacFarlane @disneyplus Excellent show. Paramount should just hire you to produce a new Star Trek series as they've clearly forgotten what made Star Trek good. The Orville is 10x the show Discovery and Strange New Worlds are. Hoping for a Season 4 on Orville!

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AltayCap

@AltayCapital

9 months

Small/microcaps in the U.S. have so many people "turning over rocks". More alpha in foreign market microcaps. Anyone looking at South Korean small caps? Foreigners can't even access SK stocks easily, which means few are even looking. Some absurdly cheap divy paying net nets there

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AltayCap

@AltayCapital

1 year

Any value investors looking at South Korea? They have more listed stocks than Germany, France, and UK combined. Lots of cheap names, but not easy to trade due to FX controls. Need a local broker and signing up is a bit of a process as foreigner. Any broker recommendations?

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AltayCap

@AltayCapital

1 year

Short staples seems like such a no brainer. Short $KO, $PEP, $CL, $HSY. All trading at over 25x P/E. I'm short many staples and long smaller cap value. These are iconic brands but growth is slow and they're expensive.

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AltayCap

@AltayCapital

4 days

Akatsuki (TYO 3932) is a $188m net-net Japanese video game developer with a decade of profitability trading at dirt cheap valuations. Sony bought 10% and Koei Tecmo 8% recently, validating their newest development platform. Yield: ~4% (3% Dividend on equity policy)

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AltayCap

@AltayCapital

4 months

Anyone interested in Anime / IP biz in Japan should read this thread. I have no position in IG Port, but am long the Anime theme via Kadokawa and some other names.

astutex.ai

@AstutexAi

6 months

This will be a long thread on manga, anime and why we think IG Port $3791 - an anime production company (and co-owner of IP for Attack on Titan, Spy x Family, Haikyuu! and upcoming Kaiju No.8) - is a multi-bagger from here and has a fair chance of becoming a smaller version of

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AltayCap

@AltayCapital

1 year

Kinki Sharyo TYO: 7122. One of the many extremely cheap listed sub-parent companies in Japan. Market cap: 9.3b JPY. Parent (TYO 9041) Mcap is 786B, owns 44.6% of Kinki. EV/EBITDA: 2.4x Price to Book: 0.3x NCAV: 12.3B 2.24% Yield I have a tiny tiny tracking position

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AltayCap

@AltayCapital

1 year

Nisshin Group (TYO 8881) Up 11% today on new dividend policy. New payout ratio aimed at 50%, up from 30%. Stock still remains very cheap. Total current assets $793m Total liabilities $415m Market Cap $153m Insane! I'm long this one in decent size as part of my basket.

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AltayCap

@AltayCapital

8 months

Today was rough (MX airports + CAAP fell), but September was my best month of the year @ +6.7%. YTD +16.48%. Staples shorts keep doing well. Short $HSY, $KO, and many others. My coal names have done remarkable this month: ARCH/AMR/HCC. Deep value Japan remains my favorite theme.

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AltayCap

@AltayCapital

9 months

Turkish stocks are killing it. Ulker is up +97% in 1 month. I've tweeted about this name in the past. Turkey ETF ($TUR) in USD up +100% in 2022 Oppty existed in Turkish equities for a couple reasons: difficult to access market, crazy macro policies, and cheap starting valuations

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AltayCap

@AltayCapital

1 year

Anyone on fintwit interested in $GRVY should just buy Gungho in Japan instead. They're the controlling shareholder, own a much more valuable/sticky game (Puzzle&Dragon), and are also buying back stock. TYO: 3765 I'm long. Just wish I had bought more since its been running.

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AltayCap

@AltayCapital

3 months

Since Teddy's tweet this name is up a cool 45%. Teddy is worth following! I bought it when it was deep net net territroy. Now it's just hovering around $0 biz value after netting our current assets after all liabilities. I still own it and it's cheap!

J.S.

@japanstonks

8 months

Murakami Corporation $7292.JP ($300mm mcap), trading at 8.8x NTM P/E and 0.5x PB, is Japan's largest rearview mirror manufacturer (No. 5 in the world per straitsresearch) is like a mini $GNTX (14.6x PE, 3.5x PB) of 🇯🇵. Similar to GNTX it sells digital rearview mirrors, and it

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AltayCap

@AltayCapital

2 months

@gw_investing Lots in Japan still, though some of them went up a lot, others have gone largely nowhere. 8881 double net net 5658 double net net with inv securities 8046 almost double net net 7399 7887 I'm long all of these.

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AltayCap

@AltayCapital

8 months

Interesting company! Not a net-net, but a nanocap shipping pallet rental company with decent RoE (14.6%) Mcap: ¥3.67B ($25m usd) P/E (TTM): 4.3x P/TBV: 0.6x EV/Ebitda: 2x 10 Year Tangible Book CAGR: 5.37% 10 Year Net Income CAGR: 11.21% 1.75% Yield I have a tiny tiny position.

朝倉ハンP

@0856314H

8 months

日本パレットプール（4690）物流のパレットをレンタルしている会社で、日本のトップシェアです。 PER 5倍、PBR 0.6倍と指標は割安です。物流の配送をパレットに替えると、配達時間の短縮になるため、来年の物流2024年問題で成長すると注目している銘柄です。

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AltayCap

@AltayCapital

1 year

Anycolor (TYO: 5032) - The Talent Agency of the Metaverse Has Explosive Growth and Is Extremely Profitable $1.3B mcap Led by 26 year old founder Pioneer in the new and rapidly growing VTuber space 50%+ Y/Y Growth Profitable (2024 P/E 17.9 est) I'm long.

Anycolor Inc - The Talent Agency of the Metaverse Has Explosive Growth and Is Extremely Profitable

Anycolor Inc (TYO: 5032) is a ¥168B ($1.3B USD) market cap talent management / entertainment company that specializes in a new and rapidly growing sector of entertainment called Virtual Youtubers...

altaycap.substack.com

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AltayCap

@AltayCapital

5 months

Nippon Beet Sugar (TYO 2108)... Dirt cheap land play that has been profitable for 28+ years straight. Main Sugar biz is meh, but good rental inc. 0.4 p/tbv. $176m mcap / $42m after backing out net current assets. + They buyback stock! Credit @TeddyOkuyama for mentioning it. 1/?

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AltayCap

@AltayCapital

9 months

Keihin Co (TYO 9312) - Consistently Profitable & Growing Logistics Co @ 0.5x P/TBV & 11% RoE. Writeup on SS (Free. Link in Profile) Tangible BV CAGR 10yr: 6.52% Net Income CAGR 10yr: 14.49% P/E (LTM): 4.5x Yield: 3.76% MCap: $74.7M No one has written up or tweeted it before🧵

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AltayCap

@AltayCapital

1 month

Nanocap ($26m usd) net-net Tokyo Automatic Machinery (TYO 6360) ups EPS forecast from ¥507 to ¥797 per share. Dividend inc from ¥60 to ¥80 and declares ¥40 special dividend for ¥120 total. 4.1% yield not bad. P/E of 3.6. NCAV of ~$27m (counting inv sec) I own a v small position.

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AltayCap

@AltayCapital

3 months

No one is right all the time. The value i get from fintwit is idea generation. Plenty of ideas i see from smart folks that i pass on. I like being exposed to ideas / investment thesis even if i disagree with it or it doesn't work out. Keep at it Teddy, I enjoy your ideas.

J.S.

@japanstonks

3 months

I should continue sharing my high conviction Japanese stock ideas despite being wrong 50% of the time...

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AltayCap

@AltayCapital

6 months

Just wrote up on SS. Kawagishi Bridge Works (TYO 5921) is a deep value double net net (MCAP $62.5m NCAV $123m) Construction Steel Producer @ 8.3x P/E Biz valued at -$60m P/BV: 0.34x 3.17% Dividend Tangible Book CAGR 10yr 5.46% New President & Rep Director Last Month

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AltayCap

@AltayCapital

1 year

Another one of the cheap JP basket stocks ripped yesterday limit up 29% on earnings. Endo Lighting (TYO 6932) Up 90% YTD. I'm up 70% on my small position (underweight this name). It's currently @ 0.7x tbv, 2.2% dividend, 3.8x EV/EBITDA. Cheap, but no longer 'stupid' cheap.

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AltayCap

@AltayCapital

9 months

A lot of my cheap names in Japan are killing it today, not sure why given down day. Keihin (9312) up 2.95%. Terasaki Electric (TYO 6637) up 5%, Parker (TYO 9845) up 2.5% Yodogawa (TYO 5451) up 6.4%, Tosnet (TYO 4754) up 7%. Order by size of pos for me.

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AltayCap

@AltayCapital

5 months

There's a net net Japanese co that owns land in China (bought 20 yrs ago) near a tier 1 city worth 5-10x its mcap. It's already a net-net too. Unlikely value ever gets realized and we've seen huge discounts for more liquid Chinese assets owned by JP corps (ex: Ferrotec).

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AltayCap

@AltayCapital

1 year

Sonocom Co (TYO 7902) is a JP net net I own trading at 0.3x P/TBV. They bought back 2.18% of shares in Dec. ~$22m mcap Current Assets: $42.8m (mostly cash) Total Liabilities: 5.5m NCAV: $37.3m 10 Yr BV CAGR: 2.23% 10 Yr Rev (CAGR): 2.65% 10 Yr Total Return (CAGR): 8.77% 12 P/E

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AltayCap

@AltayCapital

1 year

NOK Corp TYO: 7240 (disc: long) announced the following. Maybe those reforms are kicking in. -minimum of 67.5b JPY capital returns over 3 years (divy+buybacks). Mcap is 266b jpy. -sell down cross-shareholdings -minimum dividend targets.

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AltayCap

@AltayCapital

26 days

Dainichi Co (TYO 5951) is a net-net JP manufacturor of small home appliances (humidifiers, air purifiers, etc). They've been net income profitable every year since 2001 (23+ years!) Market Cap: $73m USD NCAV: $119m USD P/E (Forecast): 12.8 0.4x p/tbv 3.1% Yield I own a tiny amt

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AltayCap

@AltayCapital

4 months

This has been a killer investment. Net income forecast is 50% higher than LTM as shown in the original post. They've revised forecasts upwards two quarters in a row now. There are so many quality net-nets! mcap is now ~¥30B vs ¥26B in NCAV. It's still cheap.

AltayCap

@AltayCapital

10 months

Terasaki Electric Co (TYO 6637) up ~8% today /w volume. My #7 largest position in cheap JP portfolio and it's also a net-net. Not seeing any news, but this is cheap. 17+ yrs of profitability. 0.5 P/TBV and 2.5x EV/EBITDA Net-net 10% EPS CAGR 5y 9% BV CAGR 10yr ~2% Dividend

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AltayCap

@AltayCapital

2 months

Bloomberg piece cites numerous larger companies with buildings being understated on the balance sheet by 2-5x, but there are bigger undervaluations in smallcap names. Asaka Industrial (TYO 5962) has an 9,394 m2 land in Sakai City (Osaka) at 1.4m JPY on balance sheet ($9k usd) lol

Gearoid Reidy リーディー・ガロウド

@GearoidReidy

2 months

Very interesting story on how activist investors are uncovering the hidden value of some of Tokyo's biggest skyscrapers, from @lisadont

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AltayCap

@AltayCapital

2 years

Anyone consider opening a series LLC and borrowing money to buy series I treasury bonds that yield 9%+? LLCs can each buy $10k per year. Some U.S states allow for series LLCs that can easily spin up hundreds of LLCs.

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AltayCap

@AltayCapital

5 months

While obviously bad for business, these seem like sensible regulations. Stopping people from losing their life savings on mobile gacha games that are fine tuned skinner boxes is a win for society. There's a middle ground between everything goes and banning.

Barely Investible Capital Management Ltd

@LowAlphaHighVol

5 months

Christmas present from the Chinese regulators. They really know how to kick a man when he’s down.

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AltayCap

@AltayCapital

4 months

One of my cheap JP net nets Onamba (TYO 5816) is limit up because they announced 'measures to realize management that is conscious of capital costs and stock prices'. The magic words that the TSE has been pushing for. Nano/small cap too ($80m). We're going to see more of this.

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AltayCap

@AltayCapital

2 months

I've literally never seen a ticker advertised on X (paid ad) that didn't go down 90%+ within a couple years. This one is already down 90%+. I'll take a nominal short position tomorrow for fun based on seeing the ad alone.

Worksport Ltd.

@WorksportLtd

2 months

Nasdaq:$WKSP 📈 A Solar Cover To Power Pickup Trucks Discover Why This Is The Perfect Time!

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AltayCap

@AltayCapital

7 months

Market is not efficient in small cap CEF space. First Trust announced they are merging $FIF, $FEI, $FEN, and $FPL (all MLP CEFs at big 15%+ discounts) into an ETF (no discount). I bought FEN after hours for 25-30 cents above closing price. Only about $20k worth.

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AltayCap

@AltayCapital

1 year

Hokuyaku Takeyama 3055, a super cheap net-net JP name I'd love to own, but it's traded only on Sapporo Stock Exchange. Growing revenue, decreasing share count, growing profits, 0.3 p/tbv. 25+ years straight profits. One of the best cheap net nets I've seen.

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AltayCap

@AltayCapital

2 months

This public JP company DIC Corp (TYO 4631) owns a huge art collection (~$300m-1B USD). Article on FT discusses the art assets. Activist fund (Oasis) is a top 3 shareholder. No position (but fun read)

Ben Tan 笨蛋

@bentan__

3 months

Anyone here familiar with artworks? Where can I go to find out the value of these paintings? There’s a Rembrandt, Monet, Picasso and a Warhol DIC $4631.T

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AltayCap

@AltayCapital

10 months

Ignoring all the fundamentals (net-nets/low PEs/etc) in Japan, the macro conditions of artificially low interest rates, high nominal gdp growth, and depreciating currency are positive for nominal equity prices. These are powerful forces.

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AltayCap

@AltayCapital

1 year

$IBKR seems like a better buy here to play the $SCHW fear. If you use Schwab, the downside to switching to IBKR is a shitty UI, but upside is they have the lowest duration fixed income port of t-bills. Plus they give better rates on cash and margin!

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AltayCap

@AltayCapital

10 months

Good day for many cheap JP names. Yodogawa Steel (TYO 5451) Up 7% on earnings and it's still cheap. Ever heard of a net-net steel maker? Sanko Techno up nearly 7% (TYO 3435). Look at their metrics (attached below). Not bad for a net-net. There are *so* many cheap JP names.

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AltayCap

@AltayCapital

8 months

Anyone know how I can get fixed rate JPY margin loans (used to buy JPY stocks)? IBKR's 0.75% marginal rate is nice, but would love to lock in rates for 5-10 years even if I pay over 1.25%. Size low 7 figures USD worth. Is this doable at this size?

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AltayCap

@AltayCapital

3 months

Short new writeup on SS about TSE reforms and Onamba (TYO 5816).

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AltayCap

@AltayCapital

10 months

Why do people invest in junior gold miners? Seems like the worst pond to go fishing. Yes, there are *some* winners, but pond is shit. This seems like a good funding short (in small size). Is there a worse sector than this? At least energy stocks sometimes go up and pay dividends

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AltayCap

@AltayCapital

8 months

No one is talking about or looking at the smaller cap JP names. So many consistent companies and many trade at net-net valuations. Won't necessarily get rich, but many of these pay 2%+ dividends too. Not much, but when margin cost is 0.75%, it's ok. Rerating is a bonus

Jamie Halse🇳🇿🇦🇺🇯🇵🌎🌍🌏

@JamieHalse

8 months

46% of #stocks in Japan's TOPIX index have zero analyst coverage, while a further 22% have only 1-2 analysts covering them. Where do you think you are more likely to find mispriced stocks? In Japan, or in the US where nearly all the stocks in the S&P have 10 or more analysts

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AltayCap

@AltayCapital

1 year

Nansin Co (TYO 7399), a net net is up 16% today. I own it as its on the extreme end of the cheapness scale at 0.3x TBV. $25m mcap Total Current Assets: $83.7m Total Liabilities: $34.6m Net current assets $49.1m vs $25m mcap. 10 year Revenue CAGR 1.5%. Book value CAGR 5.7%.

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AltayCap

@AltayCapital

9 months

@Larryjamieson_ Some of your finest work. This meme format is too good.

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AltayCap

@AltayCapital

1 year

@tobi Etsy has a rampant problem with fakes/non licensed content. Search any popular IP / Video Game / etc and there are thousands of unlicensed products. It's cute and nice for small sellers, but totally illegal. This is most of Etsy's business. Always has been.

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AltayCap

@AltayCapital

2 years

@business @TheStalwart Twitter board will say "no" and Elon will sell his stake. No position, but planning on taking a small short at open. Upside is a couple bucks from here downside is much more.

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AltayCap

@AltayCapital

19 days

Nissin (TYO 9066) limit up 2 days & down 5.5% today. They bought back ~24% of outstanding shares from cross holders and doubled dividend. Here's what the # s look like today: 0.7x book (6,008/share) 6x EPS (701 eps) 4.6% diviend (likely higher, they said 4% DOE) Still cheap.

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AltayCap

@AltayCapital

3 months

Shareholders should contact IR for their Japanese co's trading at discounts asking why they aren't on this list. I did for my port with respectful emails (JP via ChatGPT) asking what customers and biz partners would think about them ignoring rules. Super friendly /w link to rules

AltayCap

@AltayCapital

3 months

The list of companies that complied with the Tokyo Stock Exchange's request for disclosures and initiatives to improve corporate governance / share discounts has been updated with many more names added since last month. We will see more names make it to this list every month.

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AltayCap

@AltayCapital

5 months

South Korea has a lot of absurdly cheap net nets. I'd have a South Korea basket too if Korea was easy to access, but I think it deserves a bigger discount today vs Japan because capital controls and accessibility. Demographic decline worse too. Still, a lot to like there!

John Huber

@JohnHuber72

5 months

Q: How would Buffett invest if he were starting over today? (from 2006 AGM) Buffett: "I'd probably be 100% in Korean stocks" They both say they'd be running the same playbook: bargains, small stocks, deep value, etc... (h/t @BrkDaily : one of my favorite emails each day)

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AltayCap

@AltayCapital

3 months

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.

AltayCap

@AltayCapital

6 months

Just wrote up on SS. Kawagishi Bridge Works (TYO 5921) is a deep value double net net (MCAP $62.5m NCAV $123m) Construction Steel Producer @ 8.3x P/E Biz valued at -$60m P/BV: 0.34x 3.17% Dividend Tangible Book CAGR 10yr 5.46% New President & Rep Director Last Month

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AltayCap

@AltayCapital

9 months

People shorting $NVDA into earnings are nuts. So long as they acknowledge they're just gambling it's fine, but you don't short high momentum story stocks on "valuation". Reality is the vibes are strong. +20% when Jensen says "we have well over $100b in AI chip orders today"

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AltayCap

@AltayCapital

3 months

The only AI product I'm invested in 'Owe-Eye' from net-net Sonocom (TYO 7902). No idea what it does, but company is cheap. I see it as a free call options on hype/potential new products. Company has been profitable 10 years straight and valued at less than $0 and 0.37x p/b.

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AltayCap

@AltayCapital

2 months

Sharing the responses I received and naming names. It's only been a week but 6 have already replied back with one company outright telling me they WILL comply and told me WHEN they will comply! Also included the email I sent at the bottom which ChatGPT wrote up for me.

AltayCap

@AltayCapital

3 months

Shareholders should contact IR for their Japanese co's trading at discounts asking why they aren't on this list. I did for my port with respectful emails (JP via ChatGPT) asking what customers and biz partners would think about them ignoring rules. Super friendly /w link to rules

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AltayCap

@AltayCapital

6 months

$HSY making another year to date low and -20% now YTD with XLP only down 4%. One of my best shorts so far and largest single name short. Starting valuation, Ozempic, competition all likely have an impact. Down 25% since the memed upon short call by @StockJabber but it worked.

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AltayCap

@AltayCapital

9 months

One of my cheap JP net nets Solekai (TYO 9867) is up 17.4% today on volume. Can't find any obvious news. This was one of my losers, but now up +35% on it.

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AltayCap

@AltayCapital

4 months

The U.S. listed ETFs are absolutely not the way to play the reform theme.

Dan Rasmussen

@verdadcap

4 months

The Tokyo Stock Exchange has all public companies trading at less than 1x P/B to publish a plan to raise their valuations. 44% of all Japanese cos trade at < book. But if all companies were instantly to trade to 1, it would have limited impact on the largest Japanese ETFs.

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AltayCap

@AltayCapital

18 days

FUJIX (TYO 3600) is a dirt cheap TRIPLE net-net with real esate bonus, but NOT profitable+likely value trap. P/B: 0.25x mcap: ¥2.36B ($15m) NCAV+InvSecurities: ¥7.2B 3% Yield Understated JP land, but real gem is RE near Shanghai bought in late 90s worth multiples of mcap

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AltayCap

@AltayCapital

1 month

People insist these opportunities don't exist anymore, but they do in small cap / nanocap Japan.

Generals & Workouts

@gw_investing

1 month

The Delta Duck club story is one of my favourite of Buffett’s. It’s a good lesson for people with modest amounts of money, too. There are many opportunities in small + obscure things today for those willing to do their own research work

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AltayCap

@AltayCapital

3 months

$MSTR has invented the perpetual money machine. 1. Dilute common stock 2. Use $ to buy Bitcoin (They already own $11b+ worth) 3. Buying drives Bitcoin higher 4. MSTR stock goes up more than dilution % 5. Repeat. Not knocking him. MSTR has done remarkable.

Michael Saylor⚡️

@saylor

3 months

MicroStrategy Announces Proposed Private Offering of $600 Million of Convertible Senior Notes $MSTR

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AltayCap

@AltayCapital

2 months

80 bagger since ~2015. But it was flat from 2000 - 2015. Wild!

808

@prpl8

2 months

This thing is totally out of control

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AltayCap

@AltayCapital

2 months

The owner of nanocap Freesia Macross (TYO 6343) Sasaki Beji seems like an interesting character. He has tried numerous hostile takeovers and is STILL fighting with a few public companies over poison pills. They own several deep value names and trade at 0.5x p/tbv.

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