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u/Important_Fennel4636
1 day ago
Investor Behavior
Meiko margin longs squeeze
Meiko Electronics (TYO:**67**87) exploded due to its AI/Semi/Satellite related revenue beaming up >300% in H1 2026, after which net profit margins did not expand as much as revenue kept growing. Nevertheless if you really discount depreciation from massive investments in infrastructure such as new factory investments the margin is approx. the same as before the revenue exploded. No something funny happened starting around the first of may... the credit balance ratio (margin longs / margins shorts) grew by >400% until the Aug 7 print (which the market obviously misinterpreted) causing the stock to drop another \~30% (>60% drop from the mid year highs). The company is in incredible shape, and will be curious to see the credit balance ratio after the print tomorrow if those margin calls were really the reason for the sell off... if so I think this business will grow circa +40% in the next 24 months. Let me know your thoughts!?