Japan Deep Value
Japanese Equity Research, Deep Value & Below-Book Opportunities
WM Technology still appears to have multibagger optionality, all things considered, though risks remain. A tax receivable agreement becomes more relevant as taxable income grows, 29.1M shares remain available for future issuance, and going dark could let it be treated as a piggy bank. x.comÂ
Galaxy Digital's public shares deserve a discount because its Up-C structure leaves insiders in control while public common holds less than half the enterprise's economics. Insiders take tax savings through the Tax Receivable Agreement, and an early buyout of it at $30 could cost the company about $1 billion, as could a Helios spin-off. Combined with crypto volatility, time to power and its revealed cost of debt, a discount is warranted, though its size is debatable. x.com x.comÂ
Xanadu's stock was a textbook trap that has now sprung, falling about 60% premarket as insiders exit. An S-1 registered about 294M shares for resale by existing holders, which brings the company nothing and floods the float of a startup with $4.6M in annual revenue. A multi-billion-dollar valuation was unsustainable, and as a post-SPAC name its hype premium evaporated once lockups and conversions hit. Brilliant technology doesn't make a safe stock when insiders rush for the exits. x.comÂ
GrabAGun Digital and WM Technology are cash-discount special situations: GrabAGun trades below its balance-sheet cash, and WM Technology is close to it. They offer value without chasing momentum. x.comÂ
