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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Madharry who wrote (42110)	4/1/2011 10:42:31 AM
From: Spekulatius	Read Replies (2) \| Respond to of 78552

Madharry - you could well be right. I have studied the Japanese companies since we discussed them in 2007 and 2008 (Sumitomo and Itochu). My observation is that changes are brewing in Japan but it's very slow. overall, the balance sheet (which were very overleveraged in the 1990's) are in much better shape and the ROA are better too. These companies really remind in about European stocks in the early 19080's or even the stocks that WEB made his fortune in (or at least got started) in the 1950's. The Japanese have 20 years of a brutal bear market behind them. Most Japanese own very little or no stocks. I am surprised about the generous Dividend yield with many Japanese companies. Considering that you can easily borrow in Yen for 2% LT , those 3-5% that many stocks yields make stocks a huge bargain. Value traps are OK if the downside is limited. I bet I can always trade out of them opportunistically.