tag:blogger.com,1999:blog-2149523431587168680.post3348503794072904304..comments2024-01-16T00:12:23.220-05:00Comments on Oddball Stocks: A Japanese net-net with an ADR listing (and English filings!)Nate Tobikhttp://www.blogger.com/profile/05660387777171986124noreply@blogger.comBlogger9125tag:blogger.com,1999:blog-2149523431587168680.post-88096126931542841142012-04-07T13:44:04.285-04:002012-04-07T13:44:04.285-04:00You've posted this twice now, not sure of your...You've posted this twice now, not sure of your motivation. <br /><br />The problem us this tax advice would only apply to individual American investors. This blog is widely read worldwide, and not all readers are individuals. <br /><br />I would also say that the balance sheet has been very stable, a lot if these companies are, not growing or shrinking but stable. So if they have some ratio it seems like it would remain stable. <br /><br />As for myself I have no position in this stock as I put on the bottom of the post.Nate Tobikhttps://www.blogger.com/profile/05660387777171986124noreply@blogger.comtag:blogger.com,1999:blog-2149523431587168680.post-91596639985456666642012-04-07T13:33:57.635-04:002012-04-07T13:33:57.635-04:00Don't forget that if the company meets the PFI...Don't forget that if the company meets the PFIC (passive foreign investment company) criteria any time during the year, you will have to pay taxes on it as a PFIC for the whole year. E.g. if it becomes a PFIC in Dec 2012, then it is a PFIC for the whole year, and any gains are taxed at ordinary rates (even if you sold in May). The PFIC asset test threshold is 50%, which it may cross, as currently:<br />cash / assets = 36.2/77.4= 47%<br /><br />See more here:<br />http://en.wikipedia.org/wiki/Passive_foreign_investment_company<br />http://www.offshorepress.com/offshoretax/otpfic.htmPeterhttps://www.blogger.com/profile/14961287677607345714noreply@blogger.comtag:blogger.com,1999:blog-2149523431587168680.post-14095903420649963162012-04-06T15:59:51.277-04:002012-04-06T15:59:51.277-04:00Nate,
I have been reading your posts and enjoying...Nate,<br /><br />I have been reading your posts and enjoying them. <br /><br />A few things for you to chew on with 7937. Context is that funds I managed at one point were the largest foreign shareholder in the company. That said, I am out of date as I have not been involved for the last 4 years.<br /><br />1) They lease the vast majority of their stores. Don´t forget to bring the leases back onto the B/S. <br /><br />2) History of declining sales/ft2, ROE´s, etc. on a per store basis. <br /><br />3) Inventory is understated. Mostly gold & jewels which are stated at historic cost. I believe they use LIFO, so there is some hidden value in the inv. <br /><br />4) They manufacture their own jewelry and have had very low historic mfg utilization rates. Were the industry to rationalize/restructure, or jewelry sales to increase to 1980´s levels, gross margins would increase with rising utilization.<br /><br />5) Very sleepy management. Don´t expect a div hike or store rationalization exercise any time soon.<br /><br />The stores are okay in appearance, or at least were when I visited years ago. It is a middle-class jewelry retailer. Nothing overly alarming nor exciting re: capex read across.<br /><br />Good luckAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-2149523431587168680.post-9919228316107001312012-04-06T14:01:13.496-04:002012-04-06T14:01:13.496-04:00Sounds like an interesting company. I prefer japan...Sounds like an interesting company. I prefer japanese shares with english investor relation pages, as one can dig into the numbers a little.<br /><br />Regarding the ADR's. I am not very familiar with them. I reckon they are not tradeable in Japan, so I would be a little uncomfortable with them.<br /><br />A lot of japaneses stocks are also listed on german stock exchanges. Also mid-cap companies. I haven't seen a small cap yet. They are the actual japanese stocks (no foreign receipiants what so ever) and therefor can be traded in Japan. Also they can be bought and sold in odd lot sizes in germany, which I do not recommend. Most of them are rarely or thinly traded, but you have marketmakers and I bought illiquid stocks with "cheapest limit" and got the prices they offered on the internet. The bid/ask spread is quite high though.<br /><br />greetings<br /><br />GreetingsO-tonehttps://www.blogger.com/profile/14922301157900495819noreply@blogger.comtag:blogger.com,1999:blog-2149523431587168680.post-88191506182439465132012-04-06T11:49:46.285-04:002012-04-06T11:49:46.285-04:00Thanks for the information. Since I work for a Ja...Thanks for the information. Since I work for a Japanese company, we have lots of Japanese here in the office. I've been meaning to investigate more Japanese stocks as I can get input from my colleagues. I'll start with this one to see what kind of feedback they can provide.Ray Bonneauhttp://raybonneau.comnoreply@blogger.comtag:blogger.com,1999:blog-2149523431587168680.post-53598540679164406482012-04-06T06:19:59.458-04:002012-04-06T06:19:59.458-04:00LC,
I'd be interested to hear what the on the...LC,<br /><br />I'd be interested to hear what the on the ground perspective of Tsutsumi is over in Japan. If it's neutral or good then that's comforting. If they have a really bad reputation then we know why the shares are as cheap as they are.<br /><br />NateNate Tobikhttps://www.blogger.com/profile/05660387777171986124noreply@blogger.comtag:blogger.com,1999:blog-2149523431587168680.post-85406415252587260332012-04-06T06:19:04.627-04:002012-04-06T06:19:04.627-04:00I've found Japan to be the cheapest market wor...I've found Japan to be the cheapest market worldwide right now. Just like there is always a bull market somewhere, there is always a market full of net-net's somewhere, that happens to be Japan right now.<br /><br />Rella is a good company, it's run up a bit since the post but there's a lot of value left there.<br /><br />NateNate Tobikhttps://www.blogger.com/profile/05660387777171986124noreply@blogger.comtag:blogger.com,1999:blog-2149523431587168680.post-68929437778875235492012-04-06T06:16:16.536-04:002012-04-06T06:16:16.536-04:00Keep these articles coming at least I promise to r...Keep these articles coming at least I promise to read them. :)<br /><br />(I'm currently researching the Danish Rella Holdings you mentioned in your earlier post. There is a lot information about the Nordic media market available and it seems that Rella is one of the top companies in the industry (60 % market share) and the price doesn't make ANY sense. I probably post something about it later when I get things little bit more organized.)<br /><br />Maybe I should order the recommended book to get little bit more comfortable with the Japanese market because it looks that there is lot playing ground there...Epanoreply@blogger.comtag:blogger.com,1999:blog-2149523431587168680.post-32700649858029393132012-04-06T05:11:19.236-04:002012-04-06T05:11:19.236-04:00Enjoyed this post. I'm definitely going to con...Enjoyed this post. I'm definitely going to consider adding this to my portfolio. I'll ask my Japanese friends whether they know about this company, would be interesting to hear how well known the brand is.LCnoreply@blogger.com