The following is a comment written by a FISCO social reporter for individual investors, Mr. Yuusuke Yuge (Blog: Profitable Stock Information" Nekodanna's Stock Never Ceilings "). At FISCO, we strive to work with individuals who are actively disseminating information to deliver a diverse range of information to investors.
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*Written on June 10th, 2024 at 10 a.m.
With growth stocks being sold off to such an extent, many investors are only interested in large-value stocks. High-dividend stocks are also gaining popularity due to the impact of the new NISA, so the search for large-value stocks is likely to continue.
I am Yugi Yuge, who writes a stock and cat blog called 'Profitable Stock Information "Nekodanna's Stock Never Ceilings"'.
As the previous yen weakness has come to a pause, the inflow of funds from foreign investors in spot and futures markets has cooled down. If we head back to a strong yen, foreign investors will be in a wait-and-see mode. I wonder when the Nikkei Average will exceed 40,000 yen...
Even domestic investors and foreign investors are unlikely to touch growth stocks at the moment, so if funds flow in again from overseas due to some event, value stocks are likely to be bought. Even with the new NISA that is currently a hot topic, it is natural to assume that large-value stocks with stable dividends will be targeted if there is an increase in capital inflows for long-term asset management purposes.
Even after passing through the FOMC and BOJ monetary policy meetings, if the trend does not change, there is a possibility of a heavy upward trend due to foreign investors' purchasing hesitation caused by the worsening of Japan's economic indicators. Recent news about Toyota's misconduct in financial reports and concerns about the future of the Kishida administration are also noticeable negative factors.
The more uncertain the market outlook becomes, the more likely value stocks with solid performance expectations will be targeted. If the Nikkei Average can firmly break above the 25-day and 75-day moving averages, it could be a sign that investment sentiment is improving. With the Tokyo gubernatorial election, dissolution of the House of Representatives, and the U.S. presidential election, events will be coming thick and fast, so stay tuned.
In uncertain markets like this, we will check for stocks with solid earnings expectations as usual. Shinke Kogyo <7305>, which handles the manufacturing and sales of steel pipes, has updated its annual high with strong performance. With a PBR of less than 1, the stock is cheap and it has also been positively received for increased dividends. Black Clover, which is also an activist, has poured speculative purchases of the company's stocks.
Chuo Hatsujo <5992>, which handles springs for automotive cars mainly for Toyota, has been positively received after its SDM (Stabilizer Disconnect Mechanism) was adopted by the new Land Cruiser. A PBR of the company is also noticeable.
Inaba Manufacturing <3421>, known for its "Inaba Storage", has been steadily rising due to its strong performance and the effect of share buybacks. It has been about 17 years since the stock price reached the 2,000 yen level in July 2007. We will closely monitor it until the release of the earnings announcement on June 14th.
SEMITEC <6626>, which boasts a high share of temperature sensors for medical equipment, rebounded from the bottom after the announcement of earnings. Although it has continued to rise with share buybacks, the PER and PBR are both at attractive levels. We are monitoring whether it can break above both the 25-day and 75-day moving averages to form an upward trend.
From the recent IPO, we picked up Material Group <156A>. The company, which handles marketing communication support centered on PR and digital, is speculated to have AI-related potential. After the initial market fluctuations subsided, the chart (daily) seems to have bounced back from the bottom. The performance is expanding, and the company is also actively engaged in shareholder returns.
Finally, there is Anicom HD <8715>, a major pet insurance company. With the expansion of the pet market in recent years, the company's business also feels growth potential. Of course, its earnings have also been expanding year by year, and dividend payments have also been on the rise. The chart (daily) seems to have broken out of the box trend. We are keeping a close eye on whether it can continue to build an upward trend.
Well, the story has become a bit long, but on my blog, I introduce "individual stocks and theme stocks that are currently strong". Please take a look if you have time. We look forward to welcoming you with our beloved cat, "Al".
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Author Name: Yuugentei Tamaki Blog Name: The Cat Master's Stocks Know No Limits
Blog Name: The Cat Master's Stocks Know No Limits