1. Cash-Hoarding Japanese Firms Please Investors as Share Buybacks Hit Record

    Cash-Hoarding Japanese Firms Please Investors as Share Buybacks Hit Record

    TOKYO/HONG KONG (Reuters) - Japanese share buybacks have hit a record this fiscal year and are set to maintain the booming growth as cash-rich companies bow to pressure from investors and the government to boost returns and improve governance. In recent weeks, SoftBank Group Corp, Sony, Itochu Corp and other companies have announced plans to buy back shares worth more than 1.3 trillion yen, bringing the total value of buybacks flagged since April 1 to over 6.5 trillion yen (£45.6 billion)...

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    1. This past month has seen a lot of very positive shareholder-friendly activity from a wide array of Japanese companies.
    2. Recently, the global economy is weak and the Japanese market has fallen as foreign fast money has been selling aggressively.
    3. Many Japanese companies simply have too much cash on their balance sheets weighing down their ROEs. Better capital structure management is definitely needed.
    4. Dissolving cross shareholdings, and increasing dividends and buybacks are two ways to make Japanese companies more attractive to foreign investors.
    5. I tell investors that the presents are still under the Christmas tree.
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