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A record quarter didn't bring the stock back — the June margin buyers have a deadline

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かぶ子 · views 4 ·
Kioxia reported its best quarter ever at the end of last month. Net profit came in at 46 times the year-ago figure. The same day, it announced a buyback and a stock split. The stock is still below half the high it set in June. The reason isn't in the earnings report. At the end of June, margin debt across the whole Japanese market passed 7 trillion yen, the first time since records began in 1994. Almost all of that week's increase came from this one stock. People bought near the top with borrowed money, in size. Japan's standard margin loans come with a hard deadline. Six months from the trade date, and you cannot hold past it. No extensions. Anyone who bought at the June high has to close out before the year ends. If the price comes back, they sell and walk away. If it doesn't, they take the loss and sell. Either way they sell. Sellers are parked at every level above, and that queue unwinds over half a year. So the deadline calendar matters more than the earnings calendar. The company has dates of its own — the buyback runs through the end of October. The buyer's clock and the seller's clock are written on the calendar separately. This is also the stock with the most message board posts in Japan right now. Whether a margin loan expires at all depends on the country. Where you are, is there a rule about when borrowed shares have to be paid back? I hear some places set no limit.
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