We have closed out our trade on Tsutsumi Jewelry (7937 JP) for a profit of 30% today, outperforming Japan’s Topix Index by 25% over our investment period.
We looked at what the implied Price-to-Earnings would be if SIA’s profits reverted back to Pre-Covid levels, while making adjustments for the rights issue.
Not every tech stock is expensive. Samsung Electronics trades at half the valuation multiples of smartphone peers, has expected net profit growth of 80% over two years and net cash totaling 25% of its market cap.
Alibaba, Xiaomi and Meituan Dianping will be added to the Hang Seng indices on 7 Sep. Historically, index inclusions appear to have an effect. Just not in the way you might expect!