Avi Japan Opportunity Share Discussion Threads

[rjmahan] 29/6/2019 22:39

My thoughts on this:



Hope this will do very well in the years ahead - anyone know of anything else out there similar ?

[davebowler] 12/6/2019 09:16

https://www.investmentweek.co.uk/investment-week/analysis/3076969/bmo-gams-multi-manager-team-backs-insanely-cheap-japan-on-abes-reforms-continue-to-take-shape?utm_medium=email&utm_content=&=IW.Daily_RL.EU.A.U&utm_source=IW.DCM.Editors_Updates&utm_term=FPC%20FINANCIAL%20SERVICES&im_company=FPC%20FINANCIAL%20SERVICES&utm_medium=email&utm_term=2%20to%209&im_edp=410979-05474982d5ce102b%26campaignname%3DIW.Daily_RL.EU.A.U

[davebowler] 28/5/2019 14:42

The Japan portfolio gets a good mention at 2 minutes

[biggest bill] 17/5/2019 13:51

Very unusually, it is now cheaper to buy this share than sell it. So I have been adding a few more.

[vacendak] 08/5/2019 10:59

Yes, I had read that one the other day.

Strategy put into practice and practice paying off.
This augurs well for the planned capital increase.

[davebowler] 08/5/2019 10:39

AVI Japan Opportunity Trust PLC (the "Company")

Portfolio Company Announces Tender Offer



On 7 May 2019, after close of the Japanese stock market, Nittofc (4033), which accounts for 2.3% of the company's NAV, announced that it had received a tender offer for all its outstanding shares at ¥1,200 per share, representing a 37.6% premium to the close price.

Integral Corporation, through wholly owned subsidiaries, intends to acquire all the shares of Nittofc and delist the company. 32.86% of shareholders have already agreed to tender their shares and the period of purchase for the remaining shares is from 8 May 2019 to 18 June 2019.

AJOT has been acquiring shares in Nittofc since launch in October 2018 and built its stake at an average price of ¥772 per share.

[vacendak] 19/4/2019 20:05

They were short of expectation at IPO time, £80m was closer to failure (£50m) than the upper range of £200m, so it will probably have to be a "big chunk" and not just drip feeding in the market to exploit the premium.

So, the original shareholders should be given rights to subscribe at a reasonable price.

The story has read well so far, the rise has not been meteoric but the fundamentals have proven to be right. Because the fund is actually active - they write a lot of letters :) - there must be some costs involved, so it would make sense to handle something North of £100m to reduce them as a percentage.
.

[johnwig] 19/4/2019 00:15

Wanna bet?

[topvest] 18/4/2019 21:34

We won’t get a rights issue. Placing, open offer or offer for subscription.

[vacendak] 18/4/2019 09:36

A few posts ago I mentioned the absence of a right issue, we might soon get one after all:

[vacendak] 16/4/2019 09:14

Interesting, there shall be a dividend coming at some point then.
Personally, I did not mind "growth only". They are still only reporting one NAV in their RNS though.

[vacendak] 09/4/2019 19:43

Factsheet for March 2019:


Quarterly newsletter Q1 2019:

[vacendak] 05/4/2019 19:50

I had earmarked some of my cash reserves for a right issue from AJOT and today they have just announced they are loading up on debt:



Oh well... nevermind, debt is still cheap.

The NAV is back above 100.

[davebowler] 27/3/2019 09:10

Good interview-

[davebowler] 13/3/2019 16:12

Extract;
Performance Total Return1
This investment management report relates to
performance figures to 28 February 2019.
February has been an active month on the corporate
governance front. Five companies announced a buyback
(Kanaden, King, Tachi-S, Kato Sangyo and Secom Joshinetsu),
Secom for the first time. In King’s and Kato Sangyo’s case they
have been regularly buying back shares - showing their
understanding that buybacks should form a part of consistent
returns to shareholders and not only to provide liquidity to a
large seller.
Given that we have written explicitly about the merits of
buybacks to Kanaden, Tachi-S and Kato Sangyo, and expressed
our views verbally to King and Secom Joshinetsu, it is pleasing
that these companies have chosen to adopt our recommended
policies. The market reacted positively to these measures with
the average share price appreciating by +6.2% since the
announcement compared to +1.6% for the MSCI Japan Small
Cap Index with a range from -2.0% to +15.0%.
Kanaden’s buyback was all the more encouraging given it was
targeted at unwinding its cross-shareholding arrangements with
two large domestic banks. We had been suggesting that
Kanaden use excess capital to pursue buybacks given the
astoundingly low 1.1x EV/EBIT multiple at which its shares trade,
with net cash and investment securities covering 87% of the
market cap.
Shortly after month end, Tokyo Broadcasting System (“TBS”)
announced that it had sold a portion of its investment securities
portfolio. This news is most welcome, having engaged with the
company numerous times over our ownership period, and
having submitted a shareholder proposal last June seeking a
reduction in its securities portfolio.
Both announcements by Kanaden and TBS highlight that the
system of cross-shareholding relationships is beginning to
unwind.
The multitude of corporate governance announcements adds
tangible evidence to our original thesis. It confirms our view that
the companies within AJOT, with net cash and investment
securities covering 78% of market cap, are fundamentally
mispriced and offer the prospect for material upside.

[vacendak] 08/3/2019 19:27

Factsheet:


This is getting pretty comprehensive, they even list all the communications they have had with the companies held in the trust.

[vacendak] 19/2/2019 16:32

Second "investor updates", which we get on top of the factsheets:


Very upbeat, the trust is nearly fully invested now at 98% in.
The share price is on the way up again.

[vacendak] 11/2/2019 20:20

January factsheet:


Just numbers, I guess we shall obtain a more verbose commentary in the quarterly newsletter.
The numbers are not great, not too bad either, but they might have been skewed earlier on by the significant cash holdings. Only 8.1% of the fund is held in cash now.

This is a long term bet in any case.

[spectoacc] 10/12/2018 16:09

No longer a holder, and had to take a penny below for size. No particular reflection on AJOT (tho NAV has fallen with the market), more the big opportunities opening up elsewhere in this small market rout.

[vacendak] 10/12/2018 10:56

The first factsheet is up.


Contrary to those from BTEM, the factshet contains only numbers and no running commentary.
The fund is still 28.6% in cash.
Doing pretty well at 5.0% share price return since last October.
The NAV return is more sedate and below the index, which is very likely due to having been mostly in cash for a while.

[vacendak] 01/12/2018 21:19

We have now crossed 100p for the first time on an NAV basis.

I know the graph is obviously rescaled to min at 101; still it is fun and impressive to look at. :)

[spectoacc] 30/11/2018 13:13

And NAV tops £1 - well done AJOT. Also a holder :)