Entered Sasakura Engineering (TYO:6303)

I am aware that I may be overenthusiastic about the Japanese net-nets, but I’ve still picked another one. This time Sasakura Engineering. The company is engaged in the development of desalination plants, heat exchangers etc.

It’s a quantitative pick. There are many things to like from a net-net perspective, strong balance sheet, reducing share count, cyclic business. From my limited knowledge it would seem that the company could benefit from some macro trends – growing population and urbanization.

The company provides some limited IR info in English. Trading at NCAV of 0.5.

The share has a rather large lot size of 1 000 shares, so it’s limited liquidity. Unlocking value in this company could be as simple as reducing the lot size to 100 shares (common for many Japanese stocks).

 

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3 thoughts on “Entered Sasakura Engineering (TYO:6303)”

  1. Owned it for a while. Entered at ¥420. My smallest position thus far (1.6% NAV). Because of the lot size. If I brought another 1000 shares, it becomes 3% which is OKAY but I want my net net to be spread out around 2%. So I went with 1.6%. Lot size is really a sucker.

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    1. If I’m not mistaken this share was only listed in Osaka a few years back. I assume it lived a very still life. Maybe the list change will eventually cause them to reduce the lot size, either voluntary or by exchange rules.

      In my mind the global trend over the last twenty years has been reducing lot size. Many exchanges have a lot size of 1 these days…

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