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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: El Canadiense who wrote (42761)	5/21/2011 5:30:32 PM
From: Spekulatius	Respond to of 78702

re Nippon Soda forecast: The forecast of 41.42Yen/share is hidden in the Japanese part of the IR website, under item 3.) nippon-soda.co.jp I simply deduct this from the structure since the Japanese earning releases as they are all formatted the same. From the difference between the company and the consolidated numbers for Y2011, I deduct that at least 50% of the operating earnings are from foreign subsidies . These a "look through" earnings, using the equity earnings method, as is customary in Japan. In terms of net profit, the contribution of foreign earnings is even higher, if you assume they don't have to pay for the company overhead since they pretty much appear to be self sufficient, in fact I believe the Japanese leave the management of this company (which appears to be local talent) pretty much alone (probably for the better). The way I see it, if you buy Nippon Soda, you get worldwide AG operations with an approx. earnings power of ~25Yen, so the Japanese business is pretty much for free if you assign a 12x earnings multiple to the foreign operations.