Venture: Japan Auto

Venture: Japan Auto

Issue 55;

Japan offers four attractive things to investors: high-quality companies, low valuations, an undervalued currency, and momentum. Activists add a fifth ingredient and are pushing corporate Japan to a tipping point where shareholder value will receive more attention. Awareness of this trend has been growing in recent years, and the recent merger talks between Honda and Nissan have jolted investors into looking at the auto sector too.

Number of Activist Funds and Shareholder Proposals

Source: Nikko AM

This Venture issue looks at a well-known, undervalued company with a strong US footprint. It is a well-loved brand, and the cash on the balance sheet is so high that the equity is a gift.

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