Below is a comment written by FISCO Social Reporter's individual investor “Tamasuke Limited” (blog: Profitable Stock Information “Cat Husband's Stock Knows No Ceiling”). FISCO is working to disseminate more diverse information to investors by cooperating with individuals who actively disseminate information.

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※Written at 10:00 on 2024/10/7

The Ishiwari administration was inaugurated, and the general policy policy became clear. I heard the details of the statement of belief, and it seems like the market is starting to move right away. The unstable market, which is a mixture of expectations and anxiety, may continue.

Once again, my name is Kyusuke Limited, and I'm writing the stock & cat blog “Profitable Stock Information “Cat Husband's Stock Knows No Ceiling”.

If I were to briefly summarize the points I was concerned about after listening to the statement of belief speech on 10/4, there was a statement that economic policy would exceed price increases due to matters relating to national defense and the establishment of the Disaster Prevention Agency, including treatment of the Self-Defense Forces. Energy policy, including GX, and agriculture are also topics of concern.

As an overall summary, as has been pointed out in some media, the impression is that it was an unfortunate statement of belief speech lacking specificity. Although abstract goals were set in the economic field, which is said to be Prime Minister Ishiwari's weak point, there was no specific mention of how to act. It also seems that they are taking a little distance from the interest rate hike and tax increase line that was set up before taking office, probably because of the major stock price crash right after taking office.

The exchange rate of the dollar to yen, which was thought to be heading towards an appreciation of the yen, also rapidly swung in the direction of depreciation of the yen from the beginning of October. It is certain that both the exchange market and the stock market are in turmoil. Even in a market where uncertainty is heightened because you can't read ahead, you can see a risk-off mood where you are prepared to run away as soon as something happens.

Considering the fact that Prime Minister Ishiwari's policy is quite blurred from before he took office, that the dissolution general election is ahead, and even the US presidential election and geopolitical risks in the Middle East, it is a situation where materials are intertwined in a complex manner. It may be an option not to go against the trend now and honestly learn from stocks related to Prime Minister Ishiwari.

It seems that Ise Chemical Industries (4107), a major producer of iodine, has gradually rounded up its lower price recently. Prime Minister Ishiwari's statement of faith also included content that GX would be promoted. Iodine is used as a material for perovskite solar cells, and the company seems to have expectations.

Japan Steel Works (5631), which is being searched as defense-related, recently hit a year-to-date high. There also seems to be speculation about the fact that tension in the Middle East situation has increased since the beginning of October. If Mr. Trump is re-elected as president, is there a possibility that he will be further searched... Business performance is also strong, and dividends are being well received due to the trend of increasing dividends.

It seems that Tokyo Keiki (7721), a major ship and aviation instrument company, is also looking for defense-related matters. The new ultrasonic flowmeter “liquid battery-driven clamp-on ultrasonic flowmeter UC-1,” which was announced on 9/25, is said to be able to visualize energy “completely construction-less” without plumbing work, etc. Other than defense-related, are there speculations about energy-related issues such as decarbonization?

Carlit HD (4275), which handles semiconductor silicon wafers, explosives, and rocket propellants, seems to be viewed as a good entry into the magneto-optical materials field. Silicon Technology, which is under the umbrella of the company, has established a technology that can stably produce yttrium iron garnet single crystals. With PBR divided by 1 times, business performance has also remained steady.

Japan Land Development (1887), whose business performance has turned into a surplus, surpassed the 25th line and the 75th line when it hit bottom and turned back. PBR is undervalued at a rate of 1 times, and it seems that they are also active in buybacks of company shares. Is there any speculation that the company, which mainly focuses on civil engineering, is related to the Disaster Prevention Agency? We are watching closely even after the financial results on 10/15.

Finally, I will check Japan Basic Technology ＜1914＞ from the Disaster Prevention Agency. The company, which has strengths in ground improvement and landslide countermeasure construction, is also expanding its business performance. If the Ishiwari administration proceeds with countermeasures such as earthquakes and heavy rains, we anticipate that there is a possibility that demand will expand.

Well, I've been talking a bit long, but my blog introduces such “individual stocks and theme stocks that are strong now.” If you have free time, please take a look. We look forward to seeing you with our beloved cat “Al.”

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Author's name: Gyokusuke Kotei

Blog name: Cat Husband's Stock Knows No Ceiling