Japanese software netnet: Jedat

This is pretty simple nanocap netnet idea.

Jedat is Japanese electronic design automation software company. You can plan electronics, flat panels etc. with the software. Customers are semi-conductor type manufacturers.

It’s nanocap and competing against Autodesks but seems to have carved nice niche. Design software has some learning curve so customers can be sticky.

If you get one licence sold, you will probably sell more in the future if rest of the design team adopts the software. This with zero research from google translated Japanese annual reports.

Anyway, the company had 2,7 BYEN cash hardly any other assets and no debt. Market cap is about 1900 BYEN i.e. below net cash. The company pays dividend but obviously could do more.

EBIT was up 100%+ last quarter. Guidance is 170 MYEN EBIT so market cap/EBIT is about 11, not bad. Because of the size, I think this is just forgotten. Stock was 50% higher not long ago.

I struggle with sizing as it has been dead money for long, bouncing up and down on no news. It’s clearly worth more than double if something would happen with the cash, but nothing has happened in years. So I have started small.

Disclosure: Long 1,6% position

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