re: JAPAN sentiment
seems to be ever-improving. also seems to following the US data with a "leverage" applied to it - not unusual given the high export dependence of Japan. I could easily think that Jap is even more export-dependent than the PRC at least over a midterm timeframe
Looking at the TSE I see my stocks literally flying..
6974.J - Nihon Inter (NIEC) - www.niec.co.jp - Power Semiconductor maker (FED, SBD, RECTIFIERS) up stronlgy because co. beat midterm expectations handily - 725 Yen is a move to the 52 week (and I think 5 year) high point of that stock. It's breakout area now, not yet confirmation because old high was 720 Yen weeks ago.. PSR of this one is in the 0.8 region, still quite low for international standards - US competitors like IRF, SYXI, APTI, MSCC, SMTC all trading at considerably higher multiples
6951.J - JEOL Ltd. - Maker of Metrology, Semiconductor Equipment, Biotech & Nanotech equipment which tripled over it's new breakthru ultracapacitor nanotech based design of it's venture arm(Nanogate Cap) also holding firm around 1030 Yen on segment strength of US competitors (NANO, TWAV, RTEC etc.) Price/Sales is still under 1, comapny has a good cash reserve and business mix. A steal under 2000 IMHO
6844.J - Shindengen Electric - Another Power Semiconductor maker, firming to 330 Yen. This company is right IN it's turnaround phase the company is determined to at least breakkeven if not do better. The last power semicondcutor marker on the TSE that didn't yet get a significant lift in it's shareprice. Most active in really good segments (similar to NIEC) shipping to consumer electronics, medical equipment and industrial vertical markets. Price/Sales is under 0.30 still here so it looks like a great opportunity in the making..
4004.J - Showa Denko KK - Diversified maker of alumina, harddisc platters, performance chemicals, electronic materials, compound semi wafers and nanomaterials was recently discovered as a world class level harddisc play. Still cheap at 215 Yen. PSR around 0.4. Should beenfit from a couple of forces : firming commodity (alumina) prices, improving HDD business (look at Seagate, Maxtor, WDC) surge in demand for compound semi wafers (InP, GaAs, InGaAs etc.)
2598.J - Asahi Softdrinks - Asian Beverage segment offers great opportunities. The operating model of the whole hemisphere offers up to 60% gross margins but calls for a lot of varieties to be offered. This necessitates the MARKETING muscle - brand building, advertising ,etc. Big firms like Asahi have an edge here over smaller players. And a cultural fit (unlike Schweppes or Coca Cola) to the region makes mastering the variety churn a tad easier. The whopper in this case IMHO is the PSR of 0.20 coupled with the 60% gross margin which together point to significant leverage to boost future profits. This year a succesful turnaround can be reported and profits are expected in the 10-15 Yen range. Next year the company guided up to 85 Yen per share recently. Stock under constant accumultion, now at 560 Yen.
UPCOMING : I am right now trying to get a better glimpse into another attractive segment - AUTOMOTIVE PARTS. The supplier to the automakers should do very well and if they do serve the aftermarket on their own they have another, even more profitable leg to stand on. If you have any knowledge about contenders, pls. tell me about your picks. I would love to do at least some basic DD about them. Same holds true for semi & semi equips stocks which I am not yet aware of..
all the best
CROSSY |
