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COVER Corp (5253)

Tokyo
Currency in JPY
1,749.00
+174.00(+11.05%)
Closed·

5253 Comments

Cover Corp has been on a roll as of late with a lot of action coming from shorts. The forecast revision announced at the end of Oct 2024 helped investors forget the findings of the JFTC that Cover was negligent for withholding payments of over 1 billion yen to freelance employees (who are protected by Japanese law). Despite this, Cover continues to see their share price soar higher largely due to economic conditions shifting drastically from the recessionary conditions of 2024. That said, investors like myself continue to keep an eye on the BoJ interest decision and the USD/JPY rate as Cover continues to push closer to analysts' price target. Things I'd consider when looking at Cover are that their Q2 upward revision was largely thanks to a significant amount of 1 billion yen in advances received. Things to consider: Cover Corp is still very much a cyclical stock. While recently their value briefly traded opposite of their index, economic conditions and currency value still have significant influence of it. With as much uncertainty as there is in US and Japan's governments, you'd probably be better off waiting for an attractive entry point if you plan to buy long; or join in on the shorts game that seem to have the trend as of late.
Cover Corp appears to have peaked as short sellers have been dominating in volume. Also, as a cyclical stock, Cover Corp's stock value plummeted last year after Q2 and didn't impress in Q3 which caused the price to plummet until their annual fiscal report. If you invest long, enjoy this pull back and wait for a good entry point. If Cover can repeat in Q3 what they did in Q2, it'll be worth the wait. Otherwise, wait until April-June (before the end of their fiscal year.
As of 11/15/24 , Cover appears to have crossed the threshold where daily traders and those investing long can't support the price point. EMA cross on 11/20 JST shows a general deflation as margin traders have declined to their lowest level since May. Shorts have also hit a significant low with this stock and could potentially be turning to rival company AnyColor Inc which has seen a spike on 11/5/24
Very happy with @1700.
Investor beware. While Cover Corp is showing a surge of activity, much of this volume are due to margin traders and short selling. While their Q report drops within the next 24-36h, it's important to note Japan's GDP report comes at the end of the week, the amount of shorts has been peeking, and history has shown this company tumbles after November. Invest smartly if you're considering this stock.
While this position has been fairly choppy between the Yen Unwinding, the stock correction and the Bank of Japan messing with rates, Cover Corp has profited off solid earnings reports, the US Fed cutting interest rates and a continued expansion into the western market. This stock will be facing multiple barriers in the coming months. The Bank of Japan makes a interest rate decision on 10/30/24. Cover is scheduled to release their Q2 report on 11/6/24. That's the day before the US Fed rate decision is made. Complicating matters will be the current status of their multimillion dollar MMO HoloEarth. This game has seen multiple delays and setbacks, largely due to the scale and scope they're trying to build. In the latest Q&A, management reluctantly said, we are developing the minimum necessary functions as a minimum viable product (MVP) and gradually releasing them to see how users respond to them. This is not a good sign.. they have spent over 16.5 million dollars on this year alone and they didn't start seriously staffing the Metaverse division until the last 16 months. There's 57 people that are expected to make a fully realized, multi-area MMO, sandbox, build and go on adventure, but you can also watch live performance PG game with 57 people?! And this knowing they'll have to monetize it AND pay back 500 million yen a quarter to hopefully continue development beyond... whenever they can get it ready for public consumption.... yeah this is a big one to keep an eye on because that Q1 revenue doesn't leave much in the way of wiggle room.
BTW, 2300 is my target price for this position. Until they can prove HoloEarth can sustain itself, I'll be happy with 2300
it's interesting that, while the TOPX100 largely flat and moving sideways, (5253) Cover jumped 13.66%. Cover recently had a booth at Tokyo's summer Comiket where they debuted a number of merchandise including a card game, "Magical Girl Holowitch and more. Also set to debut are the 3D avatar models for Hololive EN -Advent-. Cover just may reach the upper forecast and previous 52w high as long as conditions remain favorable.
As of this writing, Cover's stock has jumped ~5%, the highest since the jolt stemming from their annual fiscal report. While still 1500 yen from tying their 52w (and 2024 high), share holders should turn your attention any/all news and movement concerning their "metaverse project" HoloEarth heading into October. Starting in October, Cover will assume funding and payment of continued development (and release) of HoloEarth through a hefty loan which will be repaid over 5 years (payments will come directly from company revenue). Should this project fall flat and release undercooked, it will directly hamper their monetization model for the "always online" game.
I personally don't watch Vtubers but this industry is cool
As of this post, Cover Corp has dropped -5.76%. I wonder if somebody is going to write an article as to why this happened despite no major controversy currently rocking the industry (like they did with AnyColor).
A hedge fund recently has increased its short volume on Cover. That's probably why
Assuming Cover's financial report meets expectations and their forecast, there should be a be a continued uptrend until AnyColor's Q report later on.
Invest on Vtubers industry ;)
Yall don't like Vtubers?
I like this.
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