Below is a comment written by individual investor “Sanasae” (blog: “Sanasae's Beautiful Investment Life”) of FISCO Social Reporter. At FISCO, we are working to disseminate more diverse information to investors by cooperating with individuals who actively disseminate information.

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※Written at 15:00 on 2024/8/4

Good morning and evening, everyone. The market has been quite shocked by the major crash since Black Monday. Investor friends around me also said, “Why is it going down this much? I don't know what it means!” I'm just angry... even though I had no choice but to cut my losses, the fact that I had sorted out my holdings by the end of July paid off, and somehow I was able to maintain my current mentality (tears).

This article, spelled out by an Arafo female investor who was the runner-up in the Stock 1GP Grand Champion Tournament (FY21) sponsored by Yukan Fuji, has also been serialized for 2 years... or 80. This time, along with the title column, I will introduce recent notable stocks.

The Nikkei Stock Average has plummeted since August. What the hell just happened? Even if you ask Thick Cut Jason, who is also known as an investor and entertainer, to say “Why Japanese people?” I think so. I think so too. That's because nothing has happened in the world yet.

What exactly is the reason why Japanese stocks were sold so much even though they were not hit by global upheavals such as so-called Black Monday, the collapse of the IT bubble, the Lehman shock, the China shock, and the coronavirus shock? It can be said that the main reason for this is additional interest rate hikes by the Bank of Japan and the appreciation of the yen. At the monetary policy meeting on 7/31, the Bank of Japan decided to raise the policy interest rate, which had been set at 0 to 0.1%, to 0.25%, and also announced plans to halve the purchase amount of government bonds from around 6 trillion yen per month to around 3 trillion yen per month from 2026 January to March.

In contrast to this, speculation about reducing interest rate differences between Japan and the US intensified in the foreign exchange market, and the appreciation of yen against the dollar progressed... Furthermore, the July US ISM manufacturing business confidence index announced on 8/1 and the deterioration in the number of new US unemployment insurance claims (weekly) led to concerns about the US economic deceleration, and investor sentiment in the Japanese market deteriorated rapidly. As of 8/4, I have determined that it is a “panic & dismay sale” in the Japanese market, but I still cannot determine how long this sales trend will continue. However, since such a sales period can also be thought of as an “opportunity for a big bargain,” I immediately searched for notable stocks recently. This time, I would like to introduce some of them.

＜Aim for stocks that maintain an upward trend＞

First of all, speaking of stocks that did not break the trend due to the market crash on the 3rd of last weekend, the billing system ＜3623＞, which mainly develops web payment agency services, is one of them. It's not that big material has come out in particular, but business performance has maintained strong performance, and it's a company that has speculations even if it owns a large amount of optical communication.

Similarly, last week in this article, “pay attention to 100 yen shops that receive benefits from an appreciation of yen (due to speculations about Mr. Trump's policies),” but Watts ＜2735＞ will also be picked up from here. It seems that the company was also forced to make adjustments due to the situation ahead, but I am paying attention that it can continue to maintain an upward trend due to expectations in terms of performance.

And you can't miss JVCKENWOOD ＜6632＞, which had a retrograde high & S high on the 3rd. In addition to the fact that the 1Q financial results on 8/1 were strong, it seems that speculation that sales results of business radios to North America were growing in particular as an advantage of the appreciation of the yen.

Other things I've been paying attention to in recent financial results... The Konami Group ＜9766＞, which was introduced in this article at the beginning of the year (1/6), has increased the ratings of each company by leaps and bounds due to the good financial results that continued thereafter. Furthermore, Toei Animation ＜4816＞, a long-established anime store that is also from directors Takahata Isao and Miyazaki Hayao, who are legends representing Japan, has also gone through financial results and is moving forward. I would like to put my expectations into this in the sense of “overseas expansion.”

The last one is even more rough... From the stocks we paid attention to, I'll pick up Taoka Chemical (4113), which had a surprise settlement with a 19 times increase in profit in 1Q, Nankai Tatsumura Kensetsu (1850), which also had a 9.2 times increase in profit, and Lacto Japan (3139), which has speculations about the strong yen theme. I think it's nice that both of them are small yet have a sense of affordability.

Yes, that's all for now.

In my recent blog, in addition to the stocks introduced above, I also pick up “3 notable stocks” every month as “Sanasae's one-person stock 1GP,” and measure the price range every weekend. Of course, there are a wide variety of stories other than stocks... feel free to do so even if you see something scary (laughs). well then. Have a nice trade.

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Author name: Sana Sae

Blog name: “Sanasae's Beautiful Investment Life”