[Series Investment 'Stock No. 77 - Let's Look at a Case Study! Part 26']

[Coffee Companion Trivia vol. 633]

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↓ For reference, this is the previous content in the sequence

Investment series
This time, it's another case study

Having said that, it's super simple
though

However, company profiles and their figures
it's better to get used to them

When you go independent,

'What are financial statements...?'
'What should I do about a management philosophy...?'

If you say things like that, it's out of the question...

From now on, business will also
likely become more minimal

Independence will become the norm!
Such an era might be coming!

§ 'Company Profile'

Reference:https://www.stream.co.jp/

Date of Establishment: May 29, 1997

Company Address:

Headquarters
105-0014
6F Shiba 256 Square Building, 2-5-6 Shiba, Minato-ku, Tokyo

West Japan Office
530-0003
5F JRWD Dojima Tower, 2-4-27 Dojima, Kita-ku, Osaka-shi, Osaka

Roppongi Studio
106-0032
5F EX Roppongi Building, 7-18-23 Roppongi, Minato-ku, Tokyo (within Crossco Co., Ltd.)

Business Description:
Provision of video data and various information services for network systems
Contracted services for member information management, commercial transactions, and payment processing using network systems
Planning, production, sales, and leasing of digital content and publications
Planning, development, operation, production, sales, import/export, leasing, and agency services for hardware, software, and incidental services related to network systems
Planning, production, and agency services related to advertising and publicity
Consultation, research, analysis, and studies related to 1 through 5

Capital: 2,182.37 million yen (as of the end of December 2023)

Major Shareholders:
transcosmos inc.
KDDI Corporation

Subsidiaries:
CO3 Inc.
Crossco Inc.
J Creative Works Inc.
Inocos Inc.
Big Ms Wy Inc.
VideoStep Inc.

For a Showa-era guy like me,
I guess this is what you'd call an unfamiliar IT company.

Is it IoT these days?
When it comes to video distribution, this is the place!

That's the kind of company they seem to be.
They've been around since 1997, so they're a well-established firm.

When I checked the CEO's message,
it was something like, 'We are a marketing company!'

and it mentioned things like being quick to respond
to future changes like 5G.

The website also has an overall 'we can do it!'
vibe of competence.

For institutional investors,
there were no medium-term management plans or integrated reports.

Well then, I guess I'll check the securities report.

27th Term (March 2024)
Sales: 11,266,304 thousand yen
Ordinary Profit: 585,357 thousand yen
Net Income: 298,276 thousand yen
Equity Ratio: 83.3%

26th Term (March 2023)
Sales: 12,501,233 thousand yen
Ordinary Profit: 1,652,929 thousand yen
Net Income: 873,059 thousand yen
Equity Ratio: 81.1%

25th Term (March 2022)
Sales: 12,409,438 thousand yen
Ordinary Profit: 2,052,166 thousand yen
Net Income: 1,301,342 thousand yen
Equity Ratio: 80.5%

Performance is worsening year by year.
Profit has decreased by about 10 billion yen since the term before last.

This is because sales have decreased by nearly 10 billion yen from the previous term,
and selling, general and administrative expenses have increased by about 2 billion yen.

Since the retirement benefit obligation has decreased by about 50 million yen,
they are probably downsizing their staff, aren't they?

Well, is it a layoff?
Performance is also falling, and...

It might be the best way to increase business efficiency.
Especially since it's IT-related, you know.

If you utilize things like AI,
you won't need people anymore, right?

Does that mean it will grow from now on?
Or will it continue to fall even further?

§ 'Case Study Part 26'

Example)
Securities Code: 4308
J-Stream Inc.

Verification period: December 19th to 20th, 2017

Now, what were the conditions?

1. It hit the daily price limit high.

This part is always easy to understand,
but the problem this time wasn't there.

It fell immediately afterward.
In other words, selling became dominant right after,

and it opened at that price.
So, what do you do in this case?

When I ask what to do in this case,
I mean, do you cut your losses or not?

The closing price on the 19th was 504 yen.
The daily price limit high was 604 yen.

Simply put, that's a 100 yen increase.
It increased by 20%.

However, it fell immediately after.
Actually, it continued to fall...

Ultimately, it dropped to 523 yen,
and the closing price was 553 yen. Yes, it was a disaster...

In other words, looking at the results,
this was a case where you should have cut your losses.

The drop immediately after was quite large,
so at that point, you should have cut your losses.

As a general rule,
about 30% of the expected profit.

This is the standard, for example...

604 yen ⇒ 654 yen
if you were expecting that

(654 yen - 604 yen) x 30% = 15 yen
604 yen - 15 yen = 589 yen

This is the stop-loss threshold
If it had been this stock,

it would have been an immediate stop-loss
because it dropped below 580 yen right after that

Well, things like this happen in investing
It's a good learning experience, isn't it?

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↓ For reference, this is the content for the next installment in the series

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