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 7:00 PM

Although Japan has not reached the inflation levels of Europe and the United States, it seems too early to implement additional rate hikes. Besides, there doesn't seem to be a strong impression that the increase in imported goods has been sustained. In that case, wouldn't it be stable at the current price level...?

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

It is a joyous occasion that Japan has finally overcome the long-standing deflation issue, but it raises questions to immediately raise rates as soon as they transition from deflation to inflation after years of struggle. What was all the hardship for until now? I hope the lost 30 years do not turn into 40 years.

Ahead of the Bank of Japan monetary policy decision meeting on September 19 and 20, the exchange rate hovered around 140 yen per dollar. After Governor Ueda announced keeping the policy interest rate unchanged in the press conference on September 20, the yen slightly weakened. Governor Ueda stated that "it will not be an immediate rate hike," indicating a strong intention to implement rate hikes in the medium to long term.

Of course, if the economy overheats and it becomes difficult to contain inflation, rate hikes can be justified. However, the current state of the Japanese economy does not seem to require rate hikes. If some large corporations have performed well with a weaker yen, they might face profit erosion with a stronger yen. Naturally, the economy will deteriorate to some extent, so can Governor Ueda respond promptly when that happens?

The role of the Bank of Japan is to ensure price stability, so if the momentum for wage increases continues while maintaining the current price levels, it is believed to be good for domestic demand to recover and the Japanese economy, but... in any case, the collaboration between the government and the Bank of Japan will be indispensable. In the still uncertain market, it's important to focus on domestic demand, INBOUND, and stocks with expectations due to inbound and hot weather.

Capcom <9697>, which owns many popular game titles, is forming a solid candlestick chart (daily). At the Osaka-Kansai Expo, 'Monster Hunter Bridge' is scheduled to be exhibited, which may further increase Monster Hunter fans. There are expectations in the esports-related sector, so it's important to check popular titles and collaboration events.

Gumi <3903>, which operates a mobile online gaming business, was well received for turning a profit in the earnings announcement on September 10th. The company, which had lacked stability in its performance, seems to have contributed to its performance through cost rationalization and new projects utilizing blockchain. If they can continue to stay in the black, buying interest may gradually gather.

Leading commercial mayonnaise company Kewpie Mayonnaise <2915> announced an upward revision along with its recent earnings. They are also actively committed to shareholder returns, with a positive stance on dividend increases. With a sense of undervaluation in the PBR, they updated their year-to-date high in September.

ABC Mart <2670>, which operates shoe retail stores, also forms a solid candlestick chart (daily). On September 10th, JP Morgan Securities set a 'bullish' rating on the company's grading and a target stock price of 3500 yen. The earnings announcement on October 9th is also one to watch.

Genki Global Dining Concepts <9828>, which operates revolving sushi restaurants like 'Genki Sushi' and 'Uobei', is showing strong performance with an upward trend. Not only catering to the inbound demand for sushi but also expanding to Southeast Asia, such as Thailand. Being featured in many television programs, the domestic business sales hit an all-time high in the first quarter. The potential for sushi, a pride of Japan, is infinite.

Lastly, Kosidaka HD <2157>, which operates the karaoke chain 'Maneki Neko', seems to be experiencing increased demand for indoor entertainment due to the lingering summer heat. With the midterm management goal of achieving 65 billion yen in revenue for the August 2025 period in sight, the earnings announcement on October 10th is one to watch.

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