It's been a full week for coverage of North Asia on Smartkarma. 30-odd insights on Japan and a dozen on Korea.
The big theme of the week, and undoubtedly one to watch going forward, is the trials and tribulations of Toshiba Corp (6502 JP) (Toshiba Insights are bolded in the table below). We have 7 Insights on Toshiba from 5 Insight Providers this week, with discussions on Toshiba's imminent earnings release issues then the aftermath, the possibility of delisting (not to mention the de facto inevitability of its TSE2 demotion), the issues of Western Digital Corp (WDC US) interjecting itself into the process, and for those interested in the subject, the several dozen comments attached were perhaps a record for a week on a single topic.
Travis Lundy started off the week with Timeline for Toshiba Troubles - Two Days Til A Tempest?detailing the delisting threats facing Toshiba, noting the issues of the ongoing Internal Management System report examination by the TSE, and now the 9mo results without an auditor opinion. Mio Kato, CFA followed with Toshiba: Delisting Now Highly Probable in Our Opinion in particular noting acrimonious coverage by the domestic media and some of the odd issues plaguing the company, such as the CB&I Stone & Webster transaction "not passing the sniff test" (I agree). After the earnings were released I followed on with Toshiba Files - A Disclaimed Opinion Makes Delisting More Likely discussing the TSE's Listing Regulations and Enforcement Rules and how they may affect Toshiba's ongoing listing. Mio Kato, CFA, and later in the week Andrew Lu, discussed the issue of Western Digital Corp (WDC US) re-entering the scene as it became clear that a) the first round of of the "beauty contest" for Toshiba's memory chip business was hotly contested. WDC wants to keep its rights under the JVs it operates with Toshiba at Yokkaichi, the leading bidder Broadcom which appears to have the support of the three megabanks (which would be important to get the support of the 80-odd Japanese financial institutions who are lenders to Toshiba) is seen by them as an antagonistic party, and erstwhile spoiler Hon Hai Precision Industry (2317 TT) is trying hard to get funding so has enlisted the support of Softbank Group Corp (9984 JP) and possibly Apple Inc (AAPL US) to generate more financing options. At the moment, I expect it comes down to Broadcom and WDC though one could see an INCJ+JapanInc bid for the defense business to keep it Japanese - and perhaps that would be the funding for WDC to keep better control over its JV. I would note that the news in the paper over the weekend is that Toshiba could delay its earnings release until the 22nd of May to get itself more time to get auditors' OK. The TSE rule is 45 days after the close of the fiscal year so this would be stretching the TSE's patience yet again.
More below the fold after a really, really big table of Insights.
All of the [email protected] Insights This Week.
|Tsugami Listing Its Chinese Sub in Hong Kong|
|Kowa TOB To Take Out The Rest of Maruei Dept Store|
|14 Apr||Andrew Lu||Toshiba NAND Unit Sales - Apple Comes to Help but WD Comes to Sabotage|
|14 Apr||Travis Lundy||NTT - One Market Buyback Complete. What Next? Expect Another.|
|14 Apr||Travis Lundy||Tasaki CEO Gives Nikkei Interview - Hmmm...|
|14 Apr||Mio Kato, CFA||Sakata Seed: Overseas Sales Continue to Drive Growth as 9M OP Hits 96% of Full Year Consensus|
|14 Apr||Custom Products Group||Potential Surpises?? Comparing Foreign and Domestic FY1 EPS Estimates in Japan|
|14 Apr||Pelham Smithers||Yahoo Japan - Delivery Service Primer|
|13 Apr||Bixmoor||Japan’s Unprecedented Population Decline|
|13 Apr||Pelham Smithers||Ricoh Exits Cameras…Bigger Problems to Consider|
|13 Apr||Pelham Smithers||Square Enix Dragon Quest XI Release Date – 29th July|
|13 Apr||Pelham Smithers||Toshiba: The Surprising Lack of Read-Across to the Rest of Japan Inc.|
|13 Apr||Athaporn Arayasantiparb, CFA||It’s Songkran. Let’s Fly to Japan!|
|13 Apr||Travis Lundy||Yamada Denki & Best Denki Betrothed - Finally|
|13 Apr||Mio Kato, CFA||Western Digital Attempts to Block Toshiba Chip Business Sale to Outside Parties|
|13 Apr||Custom Products Group||Oversold Financial Sector Moving on Volume in Japan....|
|12 Apr||Pelham Smithers||PC Depot – A Mini Masterclass in Crisis Management|
|12 Apr||Pelham Smithers||Chugai Pharma (4519) - ALEX Trials for Alecensa a Success|
|12 Apr||Travis Lundy||Toshiba Files - A Disclaimed Opinion Makes Delisting More Likely|
|12 Apr||Pelham Smithers||PeptiDream: J&J Latest Drug Major to Tie Up|
|12 Apr||Pelham Smithers||Seagate CEO Bullish on HDDs – Consider the Source, but Still Interesting|
|11 Apr||Pelham Smithers||Konami (9766): Readthrough from Its Casino Interview|
|11 Apr||Travis Lundy||Brass (2424 JP) - TOPIX Wedding Bells But Send Best Wishes Instead|
|11 Apr||Mio Kato, CFA||Toshiba: Delisting Now Highly Probable in Our Opinion|
|11 Apr||Mio Kato, CFA||Yaskawa Electric’s VI Fund Makes Smart Acquisition in Energy Storage Startup Teraloop|
|11 Apr||Travis Lundy||Fuji Die - Smallcap Niche Player Moves to TOPIX with an Interesting Registry|
|10 Apr||Travis Lundy||Synchro Foods (3963) - Small Cap Aims for the Big Top, But Not Til Later.|
|10 Apr||Nowcast, Inc.||Nowcast Review on Market Conditions: Nowcast Weekly Report|
|10 Apr||Pelham Smithers||Sosei & Kyowa Hakko Kirin: Positive News on GPCR Drugs|
|10 Apr||Travis Lundy||Timeline for Toshiba Troubles - Two Days Til A Tempest?|
|8 Apr||Pelham Smithers||JSR & Shin-Etsu Chemical – Implications from TSMC Ramping Up A11 Output|
|15 Apr||Sanghyun Park||Coupang’s 2016 Results Are Disappointing - It Is Now in a Double Bind|
|15 Apr||Sanghyun Park||YMT IPO Summary - PCB Plating Chemical Company’s Solid Growth Story|
|13 Apr||Euromonitor International Ltd.||Leading Innovators: South Korea Becomes the Next Stop for Biotechnology|
|13 Apr||Douglas Kim||Visit to Myeongdong - The Shopping Mecca of Seoul|
|12 Apr||Sanghyun Park||AP Systems Holdco Conversion - What Now?|
|12 Apr||Morningstar||Narrow-Moat Loen’s 2017 Earnings Will Benefit from Significant Price Hike, but Shares Fairly Valued|
|11 Apr||Douglas Kim||Regulatory Risks Resurface to Lower Telecom Rates in Korea|
|11 Apr||Douglas Kim||Hyundai Electric & Energy Systems Spin-Off: A Deeper Look at Its Valuations|
|11 Apr||Sanghyun Park||ING Life Insurance Korea IPO Part 3 - Further Discussion on EV & RoEV|
|10 Apr||Manu Bhaskaran||Asian Geo-Political Risks Edging up – Watch Korea|
|10 Apr||Douglas Kim||Its All About Hyundai Robotics|
|10 Apr||Sanghyun Park||Netmarble Games IPO Part 3 - Valuation Discussion|
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