Below is a comment written by a personal investor, "Sanasae", a Fisco Social Reporter (blog: 'Sanasae's Beautiful Investment Life'). At Fisco, we work to collaborate with individuals who actively disseminate information to provide a greater variety of information to investors.

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Written on July 10, 2024 at 3 pm. In recent days, there have been a number of days where we want to avoid going out due to intense heat. When I was a child, I remember that the summer heat was at most around 32-33 degrees, but now that I'm an adult, it feels like the normal temperature in the city is a hot summer day of 37-38 degrees or higher. As a woman in her forties who is careful about her exposure to the sun, I work out alone in a room with air conditioning, thinking to myself, "I don't want to dry up like this."

This is the 78th installment of the series in which a female investor in her forties, who was the runner-up in the Evening Fuji-sponsored Stock 1 GP Grand Champion Tournament in fiscal year 21, contributes an article. Along with the featured column this time, I will introduce the latest stocks of interest.

Regarding the government policy on procurement of drugs for advancing new drug development ventures, starting from May this year, bio-related stocks that are expected to be used in various diseases, including cancer and Alzheimer's, have been gaining popularity. If such drugs are officially approved, it could lead to major changes in the world and, needless to say, become a huge market. Now, let me quickly introduce the biotech stocks and stocks with upcoming earnings reports that I am paying attention to, using the remainder of this space.

On July 5th of last week, the TV Tokyo program "WBS" reported that in response to prolonged water supply disruptions caused by the earthquake in the Noto Peninsula, Prime Minister Kishida instructed emergency inspections of water pipes at important facilities across the country. As the market adage goes, "No sell in government policies," and the result was that there was an increase in the inquiry of water-related stocks on the 8th, with Japan Cast Iron Pipe <5612>, which is focused on ductile pipes used in water supply systems widely used in Japan, becoming limit-up. However, it seems that the overheating sentiment has subsided by today, the 10th. In other words, there is a possibility that inquiries did not continue, even though it was a government policy.

That is because the prime minister's directive was limited to emergency inspections of important facilities, with budgetary considerations to follow. The movement of theme stock inquiries in government policies is influenced by the "market size" that moves from time to time, and investors need to be extremely careful. Even I occasionally miss the mark and end up regretting buying stocks that skyrocket (tears).

However, the issue of aging water pipes is not new, and according to the Ministry of Health, Labour and Welfare, water pipes that exceed the useful life of 40 years account for about 20% of the entire country, and the cost of replacing them will exceed 33 trillion yen over the next 30 years. Therefore, it can be said that these water-related stocks have a long lifespan and may continue to be popular from time to time. In my case, I will continue to keep an eye on Japan Hume Pipe <5262>, which deals with hume pipes used in all fields, including water and sewage, and Nippon Kotei Co., Ltd. <1929>, which is reputed for its repair of aging water pipes, Kurimoto Iron Works Co., Ltd. <5602>, which handles various pipelines, and Maesawa Fitting Industry Co., Ltd. <6485>, which was introduced before and is related to Maesawa Industrial Co., Ltd.

In addition to the aforementioned water-related stocks, bio-related stocks that are expected to be used in various diseases, including fibrosis treatment drug Aysulu-yui in China, and GNI Inc. <2160>, which also has a track record in drug development, are being scrutinized as a new component of TOPIX. Also, Perseus Proteomics Co., Ltd. <4882>, which handles functional anti-cancer antibody drugs and Syfuse Co., Ltd. <4892>, which recently succeeded in developing 3D cell products, together with Ipo this year, Chordia Therapeutics <190A>, and PRISM BioLab are also being looked at. As for the stocks to watch for upcoming earnings this summer, I am checking Aryusuto Co., Ltd. <5852>, which is a major die-casting company for automobiles, Nitto Seiko Co., Ltd. <5957>, which deals with precision screws and is expected to benefit from the depreciation of the yen, and JUKI Corporation <6440>, which handles industrial and household sewing machines. Finally, although the earnings announcement has already passed, I will continue to keep an eye on MItachi Sangyo Co., Ltd. <3321>, which announced a new midterm plan specifying a revenue recovery outlook and an operating profit of 3 billion yen (forecast) for fiscal year 26 on the 5th of last week.

Yes, that's all for this time.

In my recent blog, in addition to the stocks introduced above, I pick up the 'Top 3 Stocks to Watch' every month as 'Sanae's Solo Stock 1GP' and measure their price range every weekend. Of course, there are various topics other than stocks... Please feel free to enjoy it even if you are curious or scared (lol). Well then, have a nice trade.

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Author name: Sanasae

Blog name: 'Sanasae's Beautiful Investment Life'