Originally posted by glanglois at the bottom of page four, under Risks.
Others with investment experience may comment. I think the reasons to sell are very clear: Hoya does not like low margins, small market share, and small profits for a lot of work. Not their style. And it's often easier to sell a profitable business ....
I have considerable professional experience reading, using and distributing investment research in general and Citi research in particular for over 20 years.
The analyst states an investment thesis and recommendation. The world is not perfectly predictable. Circumstances that MIGHT cause the recommendation to result in a less than optimal result (including events where the price outcome is better than predicted, so the risk is opportunity cost or loss if short) are Risks. They are unknowable. The sale of Pentax would, should it occur, alter the predicted outcome.
To me this report is one in a series. It assumes the reader has contextual knowledge of the ongoing opinion on Hoya. These notes are brief updates to much deeper, in depth Research Reports. In such a report the analyst would have made an in depth analysis for the potential timing and value of a sale of Pentax.
To the poster who believes the paragraph is boilerplate left over from the prior quarter, I assure you compliance officers review every word, coma, period and character format of these releases. Nothing is an erroneous entry.
Further, the Japanese division of Citi is not fully integrated in Global Markets. The research writing is often not to the same standard as New York, London or the quant group in China. Last, the report is imperfectly translated from Japanese.
In analysts language a Risk is just that - an unpredictable but possible future event that would alter the Base Case outcome.
Nothing special here.