Entered Nichiwa Sangyo Co Ltd (TYO:2055)

Nichiwa Sangyo is a Japanese company manufacturing livestock feeds. Nichiwa is trading at a discount to net-current assets (P/NCAV 0.5) and has a strong balance sheet with plenty of cash. The company offers a dividend and stable share count.

As most documents are in Japanese, which I don’t understand, this is mainly a quantitative bet. I see plenty of reasons for the discount, such as poor margins and swelling working capital.

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