Hikari is soon viewed as a leader in Japan's New Economy. Few analysts note the sharp increase in debt. Pending IPOs in Hikari's venture portfolio divert attention from the dramatic rise in leverage. Analysts argue that potential synergies between Hikari's online and offline services deserve significant premiums. Hikari is now the second largest internet company in Asia.
Hikari shares suffer a sharp correction.
Multiple rumors surface in the market, including investigations by tax authorities, insider trading and dissatisfaction of key customers. Fifteen days later, Hikari announces final results for 1H00. Shigeta claims the shortfall was caused by Hikari's failure to reach contracted sales targets. The market is shocked by Hikari's results. Hikari shares face tremendous selling pressure, but because of Japanese market regulations, the stock can decline only a limited amount each day.