Following our meeting with management in Japan, we have sold all our holdings. It is clear that with the onset of the new 5th generation products the market for Sega's key product will fall. Not only will volume fall but we have to expect that price and margins will also decline. We have revised down our earnings substantially. On our new numbers the stock is fully valued.
Sega Sammy (formerly Sammy Corp). A leading producer of Pachinko machines. First quarter sales have already exceeded 70% of the company's full year forecasts. In addition they are merging with well known, but inefficient, arcade game producer Sega. The merged company will be headed by Sammy's CEO who should be able to strip out costs through synergies. On a PE to growth ratio of 0.5 the stock's valuations look attractive.
| Sedol |
Type |
Price |
Date |
|
B02RK08 |
Sell |
JPY 2757.888 |
19/03/2007 |
|
B02RK08 |
Buy |
JPY 3755.84 |
01/08/2006 |
|
B02RK08 |
Buy |
JPY 4763.48 |
20/03/2006 |
|
B02RK08 |
Buy |
JPY 3987.077 |
16/11/2005 |
|
B02RK08 |
Buy |
JPY 7198.194 |
08/08/2005 |
|
B02RK08 |
Buy |
JPY 6499.167 |
02/03/2005 |
|
B02RK08 |
Buy |
JPY 6654.167 |
01/02/2005 |
|
B02RK08 |
Buy |
JPY 5373.75 |
16/11/2004 |
|
B02RK08 |
Buy |
JPY 5194.286 |
11/11/2004 |
|
B02RK08 |
Buy |
JPY 5181.25 |
11/11/2004 |
|
B02RK08 |
Buy |
JPY 4978.333 |
05/11/2004 |
|
B02RK08 |
Buy |
JPY 4976.667 |
01/11/2004 |
