Tokyo Market Summary: Nikkei Average Significant Rebound “Seven Samurai” Is Now Stepping On Disco

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Japanese stocks, “Seven Samurai,” are now going strong disco
Half a year has passed since Goldman Sachs Securities showed 7 stocks of Japanese stocks named “Seven Samurai” by comparing them to the world-famous film directed by Akira Kurosawa in a report in late February. What has remained positive in the past six months is semiconductor manufacturing equipment $Disco (6146.JP)$that's all. When looking at the gain/fall rate from the publication of the same report to 8/19, disco was 3.9 3% higher. What are the remaining 6 stocks $Mitsubishi (8058.JP)$It shows solidity with a 0.72% decline, $Advantest (6857.JP)$(7.07% lower), $Tokyo Electron (8035.JP)$(20.64% lower), $Toyota Motor (7203.JP)$It sinks into a negative zone across the board (22.07% lower), etc.

Takeover proposal to 7&iHD, possibility of throwing a stone regardless of success or failure
By Alimantacion Couchard, a major Canadian convenience store $Seven & i Holdings (3382.JP)$If the acquisition is successful, not only will it become the largest project for a Japanese company, but it will also be an extremely rare case for a large-scale project by a foreign company. There is a possibility that the initial takeover proposal from Couchthal, which is not legally binding, will exceed the total market value of 7 & iHD after the report on the 19th of 5,630 billion yen. Previously, an attempt to acquire a company of this scale was impossible due to the government's protectionist tendencies and management side ideas that prioritize stability over shareholder value. However, the Ministry of Economy, Trade and Industry formulated the “Action Guidelines for Corporate Acquisitions” last year in order to seek a sincere (serious) response to corporate governance improvements and takeover proposals, and the tide is changing.

Pay attention to the handle
7 & iHD stocks fell sharply by 12% at one point, and there is also a possibility that they will be cautious about Kushtal's takeover proposals
$Seven & i Holdings (3382.JP)$The stock fell drastically in trading on the 20th, and it temporarily fell 12% from the previous day to 1893 yen. This is the intraday rate of decline since 2011/3/15. On the 19th, there was a rapid increase in material relating to receiving an initial acquisition proposal that was not legally binding from Alimantacion Couchard, a major Canadian convenience store.

Stock supply-demand improvements and US AMD's acquisition of server companies, which are turning back and forth with a sharp rise in Sakura Net, are also stock price stimulants
$SAKURA Internet (3778.JP)$It was significantly higher and returned to the 3000 yen range. The day before, they rushed into profit-making sales, but today the offensive of investment funds is once again evident. It is a major independent data center operator and uses cloud services as the main pillar of profit, but it has received certification from the Ministry of Economy, Trade and Industry for a “cloud program” supply assurance plan aimed at developing cloud infrastructure, etc., showing a strong presence as a part of national policy in building a foundation for generative AI development.

The stock price of Toyota Motor Corporation rebounded and the yen rose in one fell swoop and bought it on automobile stocks
$Toyota Motor (7203.JP)$Automobile stocks are rising, etc. Toyota added 2707 yen 50 yen in the morning, 47 yen (1.76%) higher than the previous day. The yen exchange rate in the current foreign exchange market is in the middle of the 1 dollar = 146 yen range, which is swinging in the direction of depreciation compared to the evening before, and purchases are coming in due to expectations of an improvement in export profitability. $Honda Motor (7267.JP)$Ya $Subaru (7270.JP)$Other automobile stocks are also rising across the board.
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Investment fund Oasis holds just under 4% of Mercari shares
Oasis Management, a Hong Kong investment fund known as an activist (speaking shareholder) $Mercari (4385.JP)$It became known on the 20th that it holds 3.96% of the shares. Mercari made it clear on its website. Oasis holds 6.5 million shares of issued shares as of 6/30, making it the 6th largest shareholder in terms of ownership ratio. Mercari stocks grew rapidly and temporarily rose 7% to 2,148 yen.

Hitachi acquires a US company that designs production lines to acquire customers in the pharmaceutical industry
$Hitachi (6501.JP)$It was announced on the 20th that it has acquired US Castle Hill Technologies, which supports factory production line design. With the acquisition of a company that has pharmaceutical companies as customers, we will expand the range of digital transformation (DX) support businesses at production sites. The US subsidiary Flexware Innovation, which Hitachi acquired in 2022, acquired Castle Hill on 7/31. The acquisition amount was not disclosed. Castle Hill, which was established in 1999, handled factory equipment design and consulting mainly for pharmaceutical companies, and it is said that sales for the fiscal year ended 23/12 were on the scale of 1 billion yen.