Issue #1: Live Streaming Top 5 Stock Ideas
June 1st-15th, 2025 issue
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Disclaimer: I am long shares of Glory Co., Ltd. (6457) at the time of publishing this post.
Google drive folder containing translated and raw documents: link
*If company has english filings, then they may or may not be included in the above folder
Dear Continuous Compounders,
I started my first live stream on June 5th. It has been quite the fun and entertaining experience.
In this post I recap the top 5 stock ideas I uncovered in my live streams up until the release of this post.
YouTube Livestream Recapping the Top 5 Stock Ideas:
3991 - Wantedly
*Click company name for IR link
Price/share: 1312 ¥ (June 12th, 2025)
MCap: 12.5 bn ¥
Net Cash: 5.7 bn ¥
EV: 6.7 bn ¥
P/B: 2.8x
Div yield: 1.5%
FY2025 EV/EBIT: 4.2x
FY2025 P/E: 12.0x
Quick Company Overview:
Linkedin of Japan, with far lower market share
A different approach to job posting. Employers showcase their employer profile, department you are applying to, what team members you will be working with, and images showcasing the company to attract candidates who “vibe” with the company
Example of employer profile/job posting:
Working in Thailand! Looking for a back office staff member who loves VTubers and esports!: https://www.wantedly.com/projects/1810149
Global Strategy & Biz Ops: https://www.wantedly.com/projects/2055219
Backend engineer: https://www.wantedly.com/projects/1986970?featured=0
What I like:
High margins. 34% EBIT margins, 22% NI margins, due to capturing economies of scale and reaching a user base that allows for the positive effects of operating leverage to kick in
Asset-light business model, without much need for capex. Annual D&A and capex are very low. High free cash flow generating business.
Growth opportunities:
Increase members
Increase number of employer companies
Expansion beyond Japan, i.e. Singapore
Adding additional add-ons and features to their existing subscription offering
A different type of hiring platform that is way more personable than traditional job postings. Appeals to younger generations.
What I don’t like:
The increase in user base has been slowing, indicating marginal returns from marketing spend
The increase in companies (employers) has been slowing down as well
Hoarding cash. How does the company effectively use cash?
The company should have been aggressive in their marketing spend, but have actually dialled it back down. In an ideal state, Wantedly becomes the LinkedIn of Japan, but if their primary objective is not to capture as much market share as possible, then they may have lost that opportunity.
Additional questions we want answered:
How is the company investing in its own growth? R&D? Capex?
Are they effectively using marketing spend, and how are they using it?
What is the total number of members they could penetrate? What is Japan’s labour pool
What does the hiring platform market look like? Are there a lot of generalist hiring platforms or a lot of specialized ones?
3723 - Nihon Falcom Corporation
Price/share: 1123¥/share (June 12th, 2025)
MCap: 11.5 bn ¥
Net Cash: 9.8 bn ¥
EV: 1.7 bn ¥
P/B: 1.15x
Div yield: 0.9%
FY2025 EV/EBIT: 1.4x
FY2025 P/E: 14.4x
Quick Company Overview:
JRPG company with 2 major gaming IP: YS series, Legend of Heroes
Loyal fans who comeback to each new IP release
Games are available on Playstation (PS4/PS5), handheld consoles (Switch), PC, and Mobile
The company also sells music and merchandise related to its IP
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My paid sub below has made a +39% gain as of the release of this post (3144 yen/share as of 5/28/2025). His average price is 2255 yen/share.
