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 September 22, 2024 at 3:00 PM.

As September arrives, just when you think it's finally starting to feel like autumn, the lingering heat that makes you sweat continues. The movement of Japanese stocks is sluggish, with the Nikkei Average of 0.04 million yen seeming distant... In contrast to the excellent performance of US stocks, we must now determine what will happen to Japanese stocks.

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

The US FOMC meeting took place on September 17th and 18th, where Chairman Powell announced a 0.5 percentage point cut in the policy interest rate. In response to this announcement, stock markets in both Japan and the US are buzzing. However, when compared to the momentum of US stocks, Japanese stocks seem a bit lackluster.

In Japan, the Bank of Japan's monetary policy meeting was held on September 19th and 20th, where Governor Ueda announced keeping interest rates unchanged during the press conference. Although rates remain unchanged, the impression is that Governor Ueda is exploring the timing for a future rate hike. Even after the new Prime Minister has been decided, it will be important to monitor whether there are any changes in this policy direction with the Bank of Japan.

Of course, as investors, we hope for a government policy that leans towards interest rate cuts, so as not to make enemies of the stock market. If foreign exchange rates swing too much in one direction, it could cause confusion, but there are not many people who would be troubled even if the Nikkei Average reached 0.05 million yen or 0.1 million yen. The Kishida Cabinet recorded a Nikkei Average exceeding 0.04 million yen, but was that truly due to Prime Minister Kishida's abilities? For now, as an immediate goal, we would like to see a push for the Nikkei Average to exceed 0.04 million yen once again.

Despite the summer slump, the Nikkei average did not reach a new high after mid-July. It is important to keep an eye on whether the stagnant mood will change from October, including the movements of the new administration. For now, it is advisable to focus on stocks with strong earnings expectations.

INTLOOP <9556>, which showed strong movement after the earnings announcement on September 13, has rapidly reached a new high for the year. The company, which operates consulting and dispatch businesses utilizing freelancers, is expected to achieve record high profits for the fifth consecutive year. Personally, I would like to continue monitoring stocks whose performance has reversed in the earnings reports.

This is SMAREGI <4431>, whose recent earnings report was strong. The company, which offers a cloud-based POS system for retail stores called 'SMAREGI,' has seen an increase in sales due to effective advertising such as TV commercials. The issuance of new banknotes since July this year may have also motivated the replacement of cash registers.

Stem Inc. <3920>, which is involved in the development of performance monitoring software for in-house systems, has gradually seen an upward trend in the recent chart. With strong performance and a lightweight presence typical of small-cap stocks, it stands out.

Management Solutions <7033>, providing project management support, seems to have hit bottom after the earnings announcement on September 13 and has turned the tide. The announcement of a share buyback has also been well received, and we are currently monitoring whether it can break above the 25-day and 75-day moving averages to form an upward trend.

JustSystems <4686>, forming a bright upward trend, is also moving above the 25-day moving average. The company's leading shareholder is Keyence, which is also a characteristic of the company. We are keeping an eye on how high it will update its year-to-date high.

Finally, there is Hiroden Co., Ltd. <1948>, which is involved in electrical equipment installation. Following an upward revision on September 17 and an announcement of increased dividends, there was a significant bullish movement. With the proliferation of AI data centers and semiconductor plants nowadays, the demand for the company's services such as power plants and water treatment plants may also increase. With a sense of undervaluation in PER and PBR, we are closely watching how the chart (daily) that has reached a new high for the year will move.

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