Consumer Discretionary
Announces a massive buyback, crowning what has a been a great 2 years of performance since Asymmetric Advisors, as the only broker in the market recommending the stock, turned bullish in Feb 2021. Their buy thesis was based around this long overlooked name having a very cash rich balance sheet, emerging from 3 years of intense restructuring and asset write downs and re-orientation of its watch business towards higher priced, premium models. This delivered a major earnings recovery, and having announced a 6% buyback in May 2022, management has surprised the market again by detailing plans to repurchase up to 25.6% of its outstanding shares.
Edition: 154
- 17 February, 2023
Consumer Discretionary
Contrarian Buy - Asymmetric are the only broker with a Positive rating on the name. Shares are up 90% since they turned bullish in Feb 2021. Citizen has been able to engineer a strong earnings recovery after restructuring, promoting its higher end watches and a recovery in its machine tool business. 9x CoE (but heading for substantial earnings overshoot due to FX so more like 7-8x); FCF yield of 14%; 5% dividend; 0.7x PBR with ¥86bn net cash (49% of M/Cap) - the stock looks great value and has strong momentum following the company’s impressive 1Q results.
Edition: 143
- 02 September, 2022