The market has thrown Mitsubishi Motors and CJNM in the dumpster, which is my preferred hunting ground.
Mitsubishi Motors is down 95% from its all-time high and has been dragged through the mud for decades by corporate scandals and lost market share. Despite recent strategic moves and visibly improved margins, the company is also gearing up for a cheaper Chinese foray into its ASEAN market, compounded by geopolitical tariff-related drags on its net earnings.
But I am seeing a lot of Mitsubishis in my city, and from my investigations, the offerings are quite appealing to the price-conscious auto buyers.
US margins have skyrocketed, and headquarters are committed to revitalizing the company into a dominant force by 2030.
The stock is cheap, at 1/2 its net Assets value; even a conservative rerating around BV would compel a 100% price surge. Why not?
CJ ENM is a South Korean dominant media company with tentacles spread across the country’s entertainment infrastructure.
But CJ ENM sells at near its 2008 GFC price and 1/4 its net assets despite its dominant brand and influence in the country’s economy. I did a quick sum-of-the-parts analysis and concluded that the company's current value is drastically lower than its peers in the US and China.
The AI-focused Korean market is ignoring a strong legacy firm in the doldrums.
Well, uglystock hunters couldn’t be happier!
(Not investment advice. Always consult a trusted investment advisor before trading financial securities.)
