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 19, 2024, at 8:00.

Prime Minister Kishida has announced his intention not to run in the next leadership election. Following this announcement, the Kasumigaseki bureaucracy is in a panic. With multiple candidates declaring their candidacy, who will be the next prime minister? As an investor, we would like someone who is pro-active rather than fiscally conservative.

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

Did Prime Minister Kishida have any thoughts after seeing President Biden resign? It felt more like, 'Is this the timing?' Japanese stocks still have significant volatility, and despite Prime Minister Kishida's announcement of not running in the leadership election, the stock prices have continued to rise remarkably.

The Nikkei average, which fell to 31,156.12 yen due to the Ueda shock, reached a high of 38,143.55 yen during market hours on August 16. The stock prices have already returned to the pre-Ueda shock level, and I feel that Japanese stocks have been re-evaluated after going through the earnings season in August. Whether we can aim for another level from here may depend on the leadership election.

As candidates for the post-Kishida, we have Taro Kono, Seiko Noda, Sanae Takaichi, and other candidates who have experience from the 2021 leadership election, as well as Shigeru Ishiba, Toshimitsu Motegi, Yoshimasa Hayashi, Takayuki Kobayashi, Shinjiro Koizumi, and many other politicians who have declared their candidacy. Among them, it is clear that Takaichi and Kobayashi are advocates of an active fiscal policy.

Looking back on Prime Minister Kishida's achievements, he has a strong image of repeatedly implementing "stealth tax increases" as the Ministry of Finance intended, while related stocks have surged due to increased defense spending. The upcoming party leadership election in September will also be focused on themes related to the policies of the new Prime Minister. We cannot let our guard down for the next month until the party leadership election. Now, after passing the earnings season, I have checked mainly on consulting and real estate investment-related businesses.

First, let's take a look at Jexseed Co., Ltd. <3719>, which specializes in ERP consulting. They announced an upward revision on August 5th and have since seen an increase in their stock price. As a certified partner of Oracle Japan, the company tends to attract attention in the news related to Oracle.

Link and Motivation Co., Ltd. <2170>, which specializes in management consulting, had a strong performance in their earnings announcement on August 9th. Their focus on consulting and cloud businesses has borne fruit, contributing to their performance. We are closely monitoring whether the chart (daily) can maintain an upward trend in the medium to long term after breaking above the 25-day and 75-day moving averages.

Ambix Inc. <3300>, which was well-received for its earnings announcement and dividend increase on August 13th, saw a sudden surge in its stock price. The company is expected to achieve record-high profits for the fiscal year ending in June 2025, and its P/E ratio also shows a significant undervalued sense.

The Global Co., Ltd. <3271> also saw a surge in its stock price after the earnings announcement. As a subsidiary of SBI, the company is involved in the development of condominiums and detached houses and has been steadily expanding its business performance. We are monitoring whether the chart (daily) will continue to form an upward trend.

Mugen Estate Co., Ltd. <3299>, which is engaged in the resale of renovated second-hand condominiums, also has a solid business performance and actively returns value to its shareholders through share buybacks and dividend increases. The recent chart (daily) is stable, and we also need to carefully watch the Bank of Japan's monetary policy.

Finally, there is UMC Electronics Co., Ltd. <6615>, which is involved in contract manufacturing and EMS business in the electronic equipment sector and is experiencing business improvement. The company is undervalued in terms of P/E ratio and P/B ratio. Due to the strong performance of the manufacturing industry, the company's performance is also solid, and the chart (daily) has rebounded beautifully from the lower range.

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