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 August 13, 2024 at 12 pm.

People who started investing in stocks because of the new NISA may be feeling down because of the historic crash... Expert investors have their own rules for what to do when a crash occurs. Even though the future is uncertain, let's try to minimize losses and grow to the point where we can win.

I am Yugi Yuge, who writes a stock and cat blog called 'Profitable Stock Information "Nekodanna's Stock Never Ceilings"'.

It's mentally tough to lose assets due to a market crash, but it's better to use this experience as a stepping stone towards future investment endeavors. While it may be tempting to take reckless risks to make up for the large loss, it is not advisable. Instead, we should always make rational decisions and learn from our mistakes so we can grow.

If we don't take risks that we can tolerate, we may miss out on bargain sales that only come around once or twice in a lifetime. It can be difficult to find a balance, but if we follow our rules and have confidence, we may need to have the courage to buy during a market crash, as there will be stocks that are sold at an abnormal and low price.

No matter what happens, we must always make rational choices with a calm heart. If we let our emotions run wild and lose our cool, we may end up having to exit the stock market altogether. Even the most famous investors have made mistakes. However, we should always strive for improvement and avoid making the same mistakes repeatedly. (I always make notes about my mistakes.)

I think the market will continue to have a moderate uptrend until the scars from the previous shock heal. As the stock market is still skeptical, one way to invest is to focus on value stocks. This time, let's check out undervalued stocks in the near future.

Kobe Steel Wire Industry (5660), which announced upward revisions along with earnings on August 6th, is undervalued in both PER and PBR. Despite being a small cap with a market cap of less than 10 billion, its performance is robust and it has been received favorably for its dividend increase. If the chart (daily) returns to the pre-collapse level, there is a possibility of riding an upward trend.

Japan Chemical Industry (4092), which has already returned to the pre-collapse level, is an inorganic chemical manufacturer and is doing well with both chemical and functional products, including electronic ceramic for vehicle and other applications. Although the stock price level on the chart (daily) has returned to the pre-collapse level, its PBR is undervalued by a factor of one. We are monitoring whether shareholder returns will be expanded in the future.

Nikkatsu Chemicals (4463), a major player in surfactants, is also worth checking out as a chemical manufacturer. The company's announcement of support for management geared towards being aware of capital costs and stock prices on July 31 has been well received. We are paying close attention to whether increased dividends and shareholder buybacks will be actively implemented as it is expected to report record high profits for the fiscal year ending December 2024.

Takada Industries (1966), a mid-sized comprehensive plant, is also doing well. There is also a possibility of searching for semiconductor and nuclear power plants from a thematic perspective. We are monitoring whether the chart (daily) has reached its peak and is headed towards a rebound. It is also noteworthy that optoelectronics has recently increased its stake in Takada Industries.

Arakawa Chemical Industries (4968), which deals with papermaking chemicals, etc., also has anticipated growth related to semiconductor materials such as fine chemical products. We are expecting it to turn to a profit in its fiscal year ending March 2025 and its chart (daily) will either rise from the bottom or move in the upward direction.

Finally, Yamada Consulting Group (4792), a major management consulting firm, was fortunate to be able to buy stocks at a low price despite good business performance during a market crash. We are keeping an eye on the chart (daily), which has surpassed the 25-day moving average and is aimed at the July 17th high of 2345 yen.

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