Hi Sunny,
I have no particular news but saw some great analysis in a Merrill Lynch reported dated April 21st that had several encouraging points and I paraphrase in bullet point form:
1. Softbank unfolding web based services to financial industry in Japan
2. Deregulation in Japan makes introduction of aggressive discount commission model ideal
3. Softbank has brand names AND low cost of capital (few Japanese firms has both: no US based internet assets to drive Japan equity price which would have resulted in low capital cost, and/or no name)
4. Using Net Asset Value valuation results in Yen 23,000 per share (without considering cap gain tax)
5. Using Japan based financial services franchise (Morningstar Japan - information & rating, E-trade KK - brokerage, Forexbank - forex trade, InsWeb KK - insurance) results in Yen 19,000 per share (after applying 50% discount to valuation of similar companies in US - Ameritrade, E-trade)
6. Using Economic Value/Investment Multiple method (compared to JAFCO, code 8505 and CMGI in the US) results in a mid-range valuation of Yen 25,000 per share
7. Finally, ML figures the Nikkei 225 index could use another IT company besides Sony, NTT, Canon, Matsushita, Pioneer and Fujitsu
8. Bottom line, good stock due to (a) low cost of capital, (b) strategy, (c) first-in advantage, (d) growing acceptance by intitutions, (e) better information flow - listing of Buy.com (10% owned by Softbank, 10% owned by Softbank's venture capital arm) in the US, and SB Technology and Pasona Softbank in JASDAQ will contribute to additional 'latent profit' and (f) 9984 is getting recognized as a company in its own right as well as a company holding great operating assets.
My conclusion is 9984 is resting at a level that is cheap on comparative basis and a no-brainer for long term holders. |
