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

To: Jurgis Bekepuris who wrote (42336)	4/20/2011 2:41:44 AM
From: Spekulatius	Read Replies (2) \| Respond to of 78525

re Sapporo - i bought those on this fateful evening (13th) when the Fukishima reactor blew up at a price around 257Yen. That day was the low point for the market and I pretty much got prices close to it. I bought a couple of stocks that I knew somewhat, as I could not resist the surreal bids that I saw during the Tokyo stock exchange lunch break (between 7PM and 8:30PM PST). At that point I have made no decision if it is a short term trade or not. Well it's pretty much of if goes straight up, it's going to be a trade, if it goes down, it's going to be a LT holding <g>. Others purchases were Toa Valve (1646 probably a misjudgment of mine, since I later found out that 60% of their revenues are related to the nuclear business), Sumitomo Rubber (5110), Itochu (8001), Sumitomo Densetsu (1949). Overall I am sitting or have realized a decent profit - my position was >20% of my portfolio total at some point. Now I am hooked on Japan and found quite a few stocks that I like, including some net- nets. However I am picky and in addition to good prices, i want a tactical advantage, so I am waiting for price declines. There is still quite a bit of volatility in the Japanese market so there is always a clownbuck to be made, I hope. Currently is a lot of uncertainty about the economy (my guess is we see a 5% GNP down quarter worst case) but I think those companies i held, all have a good chance to recover. The situation reminds me a bit of the 10/11 2008 timeframe when the uncertaintly and the volatility were at unprecedented levels. Even now after a recovery the values are unbelievable for a Graham style investor - where can you buy sound business (not too profitable but not cigar buts either) for literally nothing or almost nothing if you back out the cash and receivable. There are not just a few, there are dozens of stocks that are net net or close to it. The question of course is, will this change or will these stocks just sit there because nobody cares. But that is a risk I am willing to take if I think the odds are good and the business has some positive aspects that let me believe that value is created for shareholders. Well I guess I am hooked on Japan. I am in the process of opening another IB account (taxable) so I can do more international trading. The nice thing with IB and international buys in a margin account is that I don't have to worry about currency, the way I understand it, it will just create a short position for the purchase amount of the foreign stock in that foreign currency (yen short position for a Purchase in Japan). Currently I have it in an IRA which does not allow short positions, so I need to purchase the currency I want to trade in first - similar to E*Trade, except that it's fairly cheap. Still it's an extra hassle and I would rather take the currency risk (of a stock purchase) out with an equivalent short position in the currency in most cases.