Jeremy Raper
Long/short equity, deep value, special situations, growth at reasonable price

Universal Entertainment Japan: The Cheapest Gaming Name You've Never Heard Of Could Be A Multi-Bagger

(Editors' note: Universal Entertainment trades on the Tokyo Stock exchange under ticker symbol 6425.T, with average daily volume of ~$1.1B. Please note that it very rarely trades on its US OTC ticker symbol, OTC:UETMF)

Thesis Summary: The market views Universal Entertainment Japan (6425.T, hereafter 'UE') as a Japanese gaming concern dominated by a disreputable controlling shareholder, and facing both a secular decline in its core pachinko business as well as a multitude of legal/regulatory risks from the US to the Philippines. The reality is quite different: the domestic pachinko business is not only resilient but is both growing through market share gains and throwing off plentiful free cash flow in the process, while the company maintains a 'hidden asset' ...
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