Diversified Holdings
All research in Diversified Holdings — 2 reports.
A diversified entertainment and imaging group with high business quality at a fair price. Record operating profit of ¥1.45 trillion, forward P/E of ~17×, and a largely closed conglomerate discount after the financial spin-off support the case, but the gaming cycle is peaking, Samsung is taking some Apple image-sensor orders, and Sony lacks a single high-growth engine. Research rating Hold: a fair-quality compounder whose ideal buy price is ≤¥2,900.
A global diversified holding-company leader: 176 billion in insurance float, 397.4 billion in cash and short-term Treasuries, and 67 billion in net income. The capital-allocation record is excellent, but the Abel era is still unproven. At the current 486.38 dollars, with an ideal entry of 350 to 410 dollars, the margin of safety is not obvious. Rating Hold: a high-quality compounder priced fairly rather than cheaply.