I bought this share at the beginning of the year as a Japan exposure. It quickly made gains of around 20% and then tended to move sideways. At the same time, the Japanese stock markets went up and down, and Shimano proved to be very stable (low beta). Then it gained again and I was up over 30% for a while. However, Shimano has now lost almost 17% since the end of September and has therefore fallen below the 200-day line again. I cannot determine the reasons for the price loss with certainty, but the following factors could have played a role.
- Declining bicycle sales and high inventories and profit decline
- Unexpected costs of over 114 million $ due to the product recall of the Hollowtech crankset
Fundamentally, you have an excellent balance sheet and I remain confident in Shimano and their moat. However, as I cannot estimate how much further they will fall, I will now start a savings plan.
Who else is invested? What is your opinion?