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.
-----------
Written on August 5th, 2024 at 14:00
It appears that not only the SOX index is falling, but the US recession is progressing more than expected. The market had been well-received with the US economic downturn so far, as the expectation of a rate cut by the FRB increased, but there is no longer such a luxury…
I am Yugi Yuge, who writes a stock and cat blog called 'Profitable Stock Information "Nekodanna's Stock Never Ceilings"'.
According to the US employment statistics for July, released by the US Department of Labor on August 2nd, the growth in the number of new employees has slowed down, and the unemployment rate has risen by 0.2 points from the previous month to 4.3%. As a result, both the Japanese and US markets plummeted.
Although the comparison is not a simple one, the fact that the closing price dropped by ¥2216.63 from the previous day creates an impression of something extraordinary happening, as it is the second largest drop after the "Black Monday". On the positive side, it could be said that the rate cut has been largely incorporated at the FOMC meeting to be held in September, based on the results of this employment statistics.
High-tech stocks, such as semiconductors, which are sensitive to the economy, may take time to recover their bullish charts. Even Intel's performance is deteriorating. As the clouds gather over the US economy, it is also worrying how Japan's economy will be affected. Only time will tell whether BOJ Governor Ueda's rate hikes were the right decision.
It's inevitable that the shock would be huge if the Nikkei average dropped drastically from its all-time high. However, even in a market where everything is falling, there are stocks that rebound right after the drop, and maintain a robust chart. Even in a market that makes you want to look away, let's face the market and look for opportunities not to miss the "strong stocks in such times".
Biotech venture Tsubota Lab <4890>, born at Keio University, has stopped its downward trend on the weekly chart and has confirmed a rebound. The announcement of the preliminary results of specific clinical studies targeting Parkinson's disease and depression on July 9, as well as the successful development of in vitro choroidal models, which was published in an academic journal on July 25, were well received. Attention is also on the earnings report to be released on August 13th.
Lacto-Japan <3139>, which has been forming an upward trend in the medium to long term since the end of last year, expects to post its highest profit ever for the fiscal year ending November 24 due to strong performance. As the price of imported goods such as raw milk and processed meat is affected by the strong yen, there is a possibility for further upward trend.
Broadband Security <4398>, which is an SBI-affiliated company that handles credit card data security monitoring, is performing well, surpassing its annual plan in the third quarter. Security in the industry is gaining increasing attention, with news such as cloud strikes leading to system failures. We are monitoring how the earnings forecast for the year ending June 25, 2025 will be announced on August 14th.
Nms Holdings <2162> which has announced upward revision of earnings forecast on July 29, is maintaining a solid momentum. The company, which engages in manufacturing dispatch and outsourcing, also has expectations for foreign labor-related businesses promoted by the government. Cloud Works <3900>, which handles crowdsourcing services and is also in the same labor-related business, saw a sudden increase on August 2nd through its earnings report. We are keeping our eye on how the chart will be changing.
Tokyo Steel <5445>, which announced good earnings in July 31, has a noticeable value as a PER/PBR discount against the deteriorating market conditions. The company, which is a furnace manufacturer specializing in construction bars, has flagship products such as the "Nutetsucon," which allows the splicing of reinforced steel without special skills, and the construction industry, which is experiencing a labor shortage, is expected to expand its demand.
Lastly, there's DaiKo Bank <8537>. There is a history of capital business partnership announcement with SBI HD in the past, and even under a scenario of the BOJ's interest rate hike, banking shares have been widely sought after. Although strong earnings have also been observed in the company, it has been forced to adjust so far in this market, and we are monitoring if it will form an upward trend in the medium to long term after the rebound.
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".
----
Author Name: Yuugentei Tamaki Blog Name: The Cat Master's Stocks Know No Limits
Blog Name: The Cat Master's Stocks Know No Limits