New top pick in Japan

Now joint largest position with Seikoh Giken

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Folks,

The top two holdings in our Japanese basket, Seikoh Giken and Union Tool, have returned around 50% since November 2025.

This is an excellent return, particularly since we bought the top on these names five times, or topblasted, as the kids call it.

We are now topblasting a new addition to the Japanese basket, adding it next to Seikoh Giken on the top shelf.

One can make the argument that this name should trade at 20+ times forward earnings. Even after this morning’s move, it is currently trading at around 8 times forward earnings and is growing earnings by more than 60%.

In the last six months, as far as I know, there has been only one tweet and one Substack post about this company (in English). Both were from… me.

I expect the usual firms will be flagging this small cap to their clients shortly, if they have not done so already. This will have to be a quick note as the share price is going vertical as I write this.

The company is levered to HBM production. Therefore, I expect these comments from Micron yesterday to increase demand for the stock:

We have been in high-volume production on HBM4. We’ve commenced customer shipments of HBM4 and we see shipment volumes ramping successfully this calendar Q1. This is a quarter earlier than we mentioned during our December earnings call. Our HBM4 product delivers over 11 gigabits per second speeds and we’re highly confident in our HBM4 product performance and quality and reliability.”

Demand is significantly higher than our ability to supply and the industry's ability to supply. We continue to expect supply-demand to be tight beyond ‘26.

Worth repeating: Demand is significantly higher than our ability to supply and the industry's ability to supply.