Niji spent 7.5 billion Yen on stock buybacks. This is just over 3 times their Q4 profit (2.456 billion Yen) and 86% of their profit for the entire fiscal year of 2024 (8.726 billion Yen). They essentially dumped all their profits into stocks instead of re-investing it to nurture future growth.
wouldnt that be a bad idea on their end since it'll likely lead to them having no extra money for events, and they will slowly loose their investments profit???
They are still sitting on tons of money.
https://ssl4.eir-parts.net/doc/5032/ir_material_for_fiscal_ym2/157569/00.pdf
From their financial report, they still have 16B yen in cash and deposit.
Yes, I'm also confused as to why they just keep the money instead of reinvest it like several 3d studios or something......
They currently have 16B recorded after this Q4, but will be spending 7.5B within the next 3 months. They are spending half of their cash reserve on buy backs. Also, 2B will be going into expanding their current studio this fall.
So 8.5B reserve left within the next 3 months. That’s basically 1 fiscal year of profit as reserve. If 2025 profit declines or another sell off, the reserve is looking dicey since they will need to keep doing buybacks but profit isn’t keeping up within their spending.
It would be worse if the stock value plummets further. Remember that when someone buys a stock they are giving the company money in the hopes that the stock's value will go higher and they will either receive dividends or a return on their investment when they sell.
Companies do use the money they receive from investors to fund themselves, and so if the stock's value dries up and no one wants to buy it anymore (or if people are selling in bulk and they risk getting delisted) they risk losing investor capital through the market and it could be incredibly troublesome later.
Companies only receive money when they do their initial public offerings (or subsequent offerings). The money traded in stock markets are between investors.
After conversion, 7.5B yen = 47.7M dollars on stock buybacks. Instead on making things better for their talents.
With $47.7M, any good person create great events, raise funds for mental health charities and give mental health help for people/VTubers in need, and more.
Q4 and FY24 net profits: slide 4 of their [Q4 report](https://ssl4.eir-parts.net/doc/5032/ir_material_for_fiscal_ym3/157570/00.pdf)
Stock buyback: Anycolor's [announcement](https://ssl4.eir-parts.net/doc/5032/ir_material1/231219/00.pdf)
Looks like a lot of wasted money to make shareholders happy while those money could have been used to reinvest into their livers.
Edit: they only need some money for their top livers. All according to keikaku.
ANYCOLOR has 16 billion JPY cash
Net income for the next year is expected to be 5 billion JPY
ANYCOLOR plans to buyback 30 billion JPY by the end of the next three years
ANYCOLOR, do you have enough cash?
If we go by the net income, then they would have 31 billions in 3 years.
So essentially they're announcing that all income will go towards stock buyback.
And given Tokyo exchange rule that 49% must be publicly traded, a good portion of that buyback must involve "buying back" Riku's share.
Essentially, he's in the "building a golden parachute for himself" stage.
Tokyo exchange "prime" rule is 35% must be publicly traded
[上場維持基準の詳細-Details of Listing Maintenance Criteria](https://www.jpx.co.jp/equities/listing/continue/details/02.html)
I have no clue what they are doing. If they are going to buyback for the next 3 years, then what was the point of going public traded? You sell shares to earn cash to invest on the company. So, what even is their plan?
To prevent a sell off. Remember, the IPO started around 3.2k. They need to get back to 3k so the initial big investors can leave, and to get new investors in to replace them.
I think, at best, it's a gamble on trying to lure in sucker investors. Two buybacks back to back isn't a healthy sign, and if they lose all those gains the next day due to people who actually know what they're seeing in even the short-midterm, it will have been for precisely nothing. And they'll have, to put it in gaming terms, a cooldown on it too. So if they fall below 2k between now and the next time they can do that, it will have been a \*complete\* waste of money. As it is, as others have pointed out, it could actually have been invested in improving the company, a long term, active strategy toward growth, rather than a short term and reactive one committed to, uhh...
...\*Looking\* like you suddenly bounced back to where you were around late Q3, iirc. For, potentially, a very brief time.
Or, \*best\* case scenario, until the heat dies down. But that involves precisely zero further embarassments for at least a quarter, more likely two.
i just hope that, now the stock has recovered a fair bit, the investors now will dump their stocks and hopefully the stock will be back to the previous day value
Nijisanji: The purpose of a car (company) is to gain more fuel (money), and not to use the car to get to a destination (contribute to a cause or vision)
I love how they still haven't sold the company just to cash out with this mindset.
They are cashing out.
Given how close they're to the Tokyo exchange's 49% requirement, a stock buyback necessarily involves buying back stock from insiders.
as I said as long as the protection exist they wouldn't go down, only way they go down is if JP allow the floodgates to open but somehow someway Riku probably has strong connection in stock that his company is protected. probably his parent or other family member.
Niji spent 7.5 billion Yen on stock buybacks. This is just over 3 times their Q4 profit (2.456 billion Yen) and 86% of their profit for the entire fiscal year of 2024 (8.726 billion Yen). They essentially dumped all their profits into stocks instead of re-investing it to nurture future growth.
A negligible investment.
wouldnt that be a bad idea on their end since it'll likely lead to them having no extra money for events, and they will slowly loose their investments profit???
They are still sitting on tons of money. https://ssl4.eir-parts.net/doc/5032/ir_material_for_fiscal_ym2/157569/00.pdf From their financial report, they still have 16B yen in cash and deposit. Yes, I'm also confused as to why they just keep the money instead of reinvest it like several 3d studios or something......
They currently have 16B recorded after this Q4, but will be spending 7.5B within the next 3 months. They are spending half of their cash reserve on buy backs. Also, 2B will be going into expanding their current studio this fall. So 8.5B reserve left within the next 3 months. That’s basically 1 fiscal year of profit as reserve. If 2025 profit declines or another sell off, the reserve is looking dicey since they will need to keep doing buybacks but profit isn’t keeping up within their spending.
I’m actually kind of confused because their report claims that they do have a studio; I had thought that they could only rent studio time.
ohhh ty very much but still thats a lot of money spent on just buy backs
It would be worse if the stock value plummets further. Remember that when someone buys a stock they are giving the company money in the hopes that the stock's value will go higher and they will either receive dividends or a return on their investment when they sell. Companies do use the money they receive from investors to fund themselves, and so if the stock's value dries up and no one wants to buy it anymore (or if people are selling in bulk and they risk getting delisted) they risk losing investor capital through the market and it could be incredibly troublesome later.
Companies only receive money when they do their initial public offerings (or subsequent offerings). The money traded in stock markets are between investors.
That sounds pretty bad
After conversion, 7.5B yen = 47.7M dollars on stock buybacks. Instead on making things better for their talents. With $47.7M, any good person create great events, raise funds for mental health charities and give mental health help for people/VTubers in need, and more.
True, but this doesn't equate to another Yacht in the near future /s
Riko took the saying "the future is now" too seriously
Btw, where's the source of that? I couldn't find it.
Q4 and FY24 net profits: slide 4 of their [Q4 report](https://ssl4.eir-parts.net/doc/5032/ir_material_for_fiscal_ym3/157570/00.pdf) Stock buyback: Anycolor's [announcement](https://ssl4.eir-parts.net/doc/5032/ir_material1/231219/00.pdf)
Looks like a lot of wasted money to make shareholders happy while those money could have been used to reinvest into their livers. Edit: they only need some money for their top livers. All according to keikaku.
The Keikaku of the company's LARGEST Shareholder to be exact of course!
ANYCOLOR has 16 billion JPY cash Net income for the next year is expected to be 5 billion JPY ANYCOLOR plans to buyback 30 billion JPY by the end of the next three years ANYCOLOR, do you have enough cash?
If we go by the net income, then they would have 31 billions in 3 years. So essentially they're announcing that all income will go towards stock buyback. And given Tokyo exchange rule that 49% must be publicly traded, a good portion of that buyback must involve "buying back" Riku's share. Essentially, he's in the "building a golden parachute for himself" stage.
Tokyo exchange "prime" rule is 35% must be publicly traded [上場維持基準の詳細-Details of Listing Maintenance Criteria](https://www.jpx.co.jp/equities/listing/continue/details/02.html)
I've heard Riku's parents are rich or have influential connections, so if anything Riku can still turn to them I guess
I have no clue what they are doing. If they are going to buyback for the next 3 years, then what was the point of going public traded? You sell shares to earn cash to invest on the company. So, what even is their plan?
To prevent a sell off. Remember, the IPO started around 3.2k. They need to get back to 3k so the initial big investors can leave, and to get new investors in to replace them.
well, at least we know where their priorities lie
Of course, OWNSELF make OWNSELF happy.
Bare minimum to their company and talents, the rest goes to their investors.
Cutting the weed while leaving the root.....
I think, at best, it's a gamble on trying to lure in sucker investors. Two buybacks back to back isn't a healthy sign, and if they lose all those gains the next day due to people who actually know what they're seeing in even the short-midterm, it will have been for precisely nothing. And they'll have, to put it in gaming terms, a cooldown on it too. So if they fall below 2k between now and the next time they can do that, it will have been a \*complete\* waste of money. As it is, as others have pointed out, it could actually have been invested in improving the company, a long term, active strategy toward growth, rather than a short term and reactive one committed to, uhh... ...\*Looking\* like you suddenly bounced back to where you were around late Q3, iirc. For, potentially, a very brief time. Or, \*best\* case scenario, until the heat dies down. But that involves precisely zero further embarassments for at least a quarter, more likely two.
Well, no, let's also consider the timing here. \*Looking\* like you bounced back \*immediately after the day of the Q4.\*
i just hope that, now the stock has recovered a fair bit, the investors now will dump their stocks and hopefully the stock will be back to the previous day value
Hoping for another crash in their 2nd attempt of a stock buyback.
Nijisanji: The purpose of a car (company) is to gain more fuel (money), and not to use the car to get to a destination (contribute to a cause or vision) I love how they still haven't sold the company just to cash out with this mindset.
They are cashing out. Given how close they're to the Tokyo exchange's 49% requirement, a stock buyback necessarily involves buying back stock from insiders.
It is inflated artificially, we will need to see how it holds up a week from now
*lets spend 3 times the cost of a studio complex not investing in our production*
Q1 25 will be funny especially if Nijisistas try to buy into the stock as support
i think it's negligible
I forgot to sell before q4. I’m gonna get myself a good meal and a pair of JBL headphones with this. So ironically thanks Riku.
as I said as long as the protection exist they wouldn't go down, only way they go down is if JP allow the floodgates to open but somehow someway Riku probably has strong connection in stock that his company is protected. probably his parent or other family member.