Idea Gen Series #3: Another Anime Related Stock

Hey, Continuous Compounders!

Today I have, you guessed it, another Japanese anime-related stock! I think there will be a point where I’ll just cover every anime JP stock.

Here are the highlights for this name:

TLDR Valuation:

MCap: 28 bn yen (180 mm USD)
No Debt
Net Cash= 12bn yen
EV=16 bn yen (100 mm USD)
P/E: 14x
EV/EBIT: 5x
EV/FCF=9x

• The stock is trading near its 52 week low and has dropped 38% from its 52 week high.

• The stock is an acquisition candidate, given that it has a 90%+ market share in one of its revenue segments.

• It’s competitors in the same field are trading at multiples 2-3x its current valuation multiples

*As of date of posting

Hint to what stock this is is on my Twitter:
https://twitter.com/compoundersEX

First 3 people to guess right, get comped 1 month paid sub. (1 spot remaining as of May 24th, if this is still up, the offer is still available) DM me on X or Substack your answer.

On another note, I’d like to give a special shoutout to

Animenomics

for having the patience to answer my many anime-related questions, which helped a lot in my research. Go check him out if you guys are interested in learning more about the anime industry.

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Track record of stock pitches:

Haier 690D: +45%

Round1: +15%

SK Japan: +15%

Okano Valve Manufacturing: +45%

GAN: +80% (closed)

CNTY: -50% (closed)

*As of May,1, 2024

Pricing Update

Hey everyone, after much deliberation, I will be raising prices for paid subs on July 1st, 2024.

Current Pricing:

Monthly: $10 CAD per month (~7.50 USD)

Annual: $100 CAD per year (~75 USD)

New Pricing:

Monthly: $20 CAD per month (~15 USD)

Annual: $200 CAD per year (~150 USD)

Current paid subs will be able to enjoy the current pricing for monthly and annual subscriptions until May 1st, 2025.

If you are a free sub and have seen value in my stock pitches, consider locking in this offer before I raise prices. Prices are likely to only go up from here.

*I reserve the right to change my mind on this price increase at any time. I may extend or shorten the deadline(s); and/or change the pricing. The terms and conditions of this offer may change at any time.

**All additional terms and conditions; and the reasoning behind the pricing update can be found in this link

Let’s take a look at this month’s stock pitch: