euglena (2931): a One-Trick Organism With No Fuel for Growth

euglena Co. (2931:JP), is a young company promising 21st-century, eco-friendly solutions for almost everything: energy, food, health, animals, and transport and even space travel! The dreams are big. The reality is rather small. The company’s Healthcare division, which makes health snacks, accounts for 99.9% of sales. Its big dreams in biofuel are […]

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SMC (6273): Accounts Beg Questions; SMC Keeps Plug on Answers

SMC responses, dated December 13, 2016 and December 14, 2016, to our original report “SMC (6273): Puncturing the Myth” barely address the key issues we have raised. The company claims there is “no problem” with their accounts and offers no evidence to support its position. The company’s comment on Seiyo is simply that they “have […]

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SMC (6273): Puncturing the Myth

SMC Corporation (6273:JP), is a ¥2 trillion market cap company, which manufactures pneumatic control equipment for factory automation. We believe SMC Corp has ‘fake’ cash and dramatically overvalued inventory on its balance sheet as a result of inflated margins if not other undisclosed losses. These questionable accounts have been enabled […]

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CYBERDYNE (7779): Talks the Talk, but Does it Walk the Walk?

During our earlier research into Jig-Saw (3914) we were amazed at the bubble that’s built around many robot-themed names in the Mothers Index. Nowhere was the extreme overvaluation as apparent as with its second-largest component: Cyberdyne. Cyberdyne is a researcher and developer of robotic suits that shot up in value […]

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Jig-Saw (3914): A Very “Puzzling” Stock

Jig-Saw has been one of the outstanding stocks in Japan in terms of share price increase in the last year. The puzzle behind this “cutting-edge” IT company, however, is how it’s managed to persuade so many with so little. The company’s strategy has been deliberately vague but peppered with buzzwords. […]

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Jig-Saw Inc. (3914): A Hi-Tech Forgery

Jig-Saw claims to be a cutting-edge tech company that is involved in every fashionable investment theme of the past two years. Its span is unbelievable! Since its IPO exactly a year ago, the company has released more than 60 vague press releases stuffed with top industry buzzwords. The stock is up […]

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Marubeni (8002): The Phantom Earnings

Marubeni wants to have its cake and eat it. The company booked a ¥30 bn gain in Q3 2016 results for a transaction that was anticipated but did NOT take place. Expect auditors to restate co.’s Q3 earnings and reduce FY16 profit to ¥30 bn. That’s a 50% cut, and […]

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Marubeni (8002): The Writedowns Have Awoken!

For the second year in a row, Marubeni Corp. revised down its profits by more than ¥100 billion. Today’s profit revision and the ¥70 billion impairment announcement shrink the company’s annual profit by two thirds from initial projections. But, things won’t end here. The writedowns are just awakenings. To read the […]

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Marubeni Corporation (8002): Writedowns Awaken

This report will show that Marubeni has failed to recognize material asset impairments of large overseas commodity and agricultural investments. Once the market recognizes these substantial losses there is material downside to the stock price. We estimate asset impairments of ¥150-200 billion (US$1.2-$1.7 billion) and a 40% downside price target […]

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