Entered Sanko Co Ltd (TYO:6964)

Took a quantitative bet on Sanko Co. Sanko manufactures mechatronics and plastic components for automotbile and IT products.

Low margin business, strong balance sheet. Dividends. Only ~1200 shareholders according to IR info. Entered at NCAV ratio of 0.6 or 460¥.


4 thoughts on “Entered Sanko Co Ltd (TYO:6964)”

  1. This is a great website. I found it when searching for information on a net net stock already in my portfolio that is part of yours also. A question though, would you be willing to recommend a good screening tool for Japanese and Asian equities?

    I’d also be interested in knowing whether any currency hedges are applied when investing in Japanese equities.



    1. Thanks for your feedback. I do not use any screening tool at the moment. I’ve used Google Finance a lot and am confounded on what to do when they shut down their portfolio service later this month.

      I considered hedging through mini-futures, but dropped the idea some time ago. I am doing this long-term and keep currency accounts, so I figured that the fx exposure is part of the diversification. This also makes me a bit reluctant to make it an only Japanese net-net portfolio.


  2. Hi Bargainhunter.

    I am interested in beginning with net net investing and I have a few questions i hope you can answer:

    1. Do you use a screener for finding net nets? Which screener do you prefer?

    2. Do you read net net blog for idea generation? Do you have any to recommend?

    3. Is it complicated with filling out the tax form when investing in these foreign stocks? I use Interactive Brokers. I am just imagining it can be a big mess.

    4. Do you recommend Interactive Broker for international net net investing?

    5. What is your most 5-10 most important criteria you are looking for in a net net stock. A discount to NCAV is obvious 🙂

    Greetings from Norway


    1. Screeners, tools and blogs come and go. At the moment I’m a bit strapped of all, one reason for the lack of activity on this blog.

      Interactive Brokers is good so far you get cheap direct access to many markets. Their trading client is a bit daunting and not self-explanatory, for example you need yourself trade all FX. Interactive Brokers do not automatically convert the currency, which many other online trading plattforms do. This allows you to have multiple FX accounts, which has both advantages and disadvantages. Moreover, Interactive Brokers will charge you a fixed fee if you do not do any trading in one particular month. Since you do not trade that much in a net-net portfolio you will likely shell some extra fees to IB, nothing major.. but still an annoyance. You can also check out Degiro.

      I am not familiar with the tax code of your country, so I couldn’t say if filling out the tax forms would be problematic. You can assume that it will be.

      As for investing criteria I mainly focus on trying to uncover any sudden blow up risk, such as fraud, bankruptcy due to liquidity etc. Remember to diversify a lot, my rule of thumb is no more than 5 % in one holding.


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