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 October 7, 2024 at 1:00 PM

Prime Minister Ishiba, who took office on October 1st, seems to be heading in a different direction from the policies he has been speaking about so far, as if he has changed after taking office. I wonder how long the Ishiba administration will last... It seems to be a topic of discussion in the streets.

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

If there is a possibility that the Ishiba administration will be short-lived, the likelihood of the current policies being implemented may also be low. Regarding the Kishida administration, despite stating that they would 'inherit Abenomics,' the policies implemented were completely opposite to Abenomics. Despite that, they managed to accomplish it over three years... What will they report at the grave of the late Ichiro Aisaku, from the same hometown of Hiroshima, at the now-defunct Koichikai... Well, let's leave that aside.

When considering the stock market, overseas investors are sensitive to risks, so there is a possibility that they may be wary of changes in the political system due to a dissolution of the House of Representatives. If the Liberal Democratic Party is expected to decrease its number of seats, the market trend is likely to change depending on whether it decreases more than anticipated or holds steady. Mr. Ishiba has already announced the schedule of October 15th for the official announcement and October 27th for the election.

Just under a month since the new administration was formed, Prime Minister Ishiba's policies seem to be taking on a Tamamushi color. However, the Bank of Japan continues to resist a hawkish stance on interest rate hikes, and the view on the exchange rate remains one of a strong yen trend. In other words, there is a tendency for stocks to become bearish. Therefore, in addition to performance expectations, let's continue to check on resilient stocks with strong upward trends... and with an eye on the imminent Lower House election and next year's Upper House election, let's check election-related stocks accordingly.

First is Intellix <8940>. The financial results (1Q) announced on October 4 showed a profit and exceeded the first half plan, continuing the expectations of an upward performance. While showing a strong upward trend, the stock price remains significantly undervalued. The chart has finally crossed the cloud of the Ichimoku Kinko Hyo (monthly) indicator, so there are hopes for profit from this point onwards.

Seiko Gikenken with strengths in light-related components and mold technology <6834> is solidly raising its lower limit. The company's optoelectronic fusion technology seems to be expanding due to the new construction rush of data centers. Will they aim for even higher prices without being swayed by external factors, such as fully acquiring MG, an injection molding manufacturer in Miyagi Prefecture?

Techno Bishamon, involved in air conditioning work <1965>, has expectations related to cooling equipment for data centers. The forecast for the fiscal year ending March 2025 is expected to be the highest ever. Similarly, Nippon Steel <5659>, with an outlook for the highest ever profit, is the largest producer of stainless steel wires. Monitoring whether they can form a trend by surpassing the 25-day moving average and the 75-day moving average.

Next, let's look at election-related stocks. Imura <3955>, which holds a 20% domestic market share of envelopes, a symbol stock, is being watched closely to see if the chart (daily) raises its lower limit. Even with the promotion of DX, envelope demand remains strong in Japan.

Musashi <7521>, which stands out for its low p/e ratio, boasts a high share in ballot paper sorting and counting equipment. Despite modest performance, the company is profitable, so it is essential to keep a close eye during the ongoing election season. Monitoring if it can exceed the previous high of 1917 yen set on September 30.

Lastly, Nishio HD <9699>, which deals with construction machinery rental, has been performing well in recent financial results. Watching closely to see how the 4Q financial results for the fiscal year ending September 2024 will turn out. The company also provides rental equipment for election campaign offices, making it worth checking out as an election-related stock.

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