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

To: Jurgis Bekepuris who wrote (42434)	4/27/2011 12:49:08 AM
From: Spekulatius	Read Replies (2) \| Respond to of 78567

Jurgis, I skipped over Seiko 4963 because the revenue growth seemed to come from an acquisition in 2003 or 2004. I don't think that the paper chemical business is attractive either (paper demand is shrinking in developed countries and Seiko PMC does not seem to have much export business). M.O Steel looks better but you are correct that profitability is very low. I basically passed over Mo tech because I was not able to glean any information from my sources (everything is in Japanese PDF's that I can't translate). It may be worth more work. I am looking for Japanese stocks that are cheap and have a way to escape the shrinking economy, either via exports or foreign subsidies. Tsurumi 6351 Manufacturing sells their pumps all over the world, for example. They serve the mining industries, utilities, landscapers etc. many of these are pretty good markets. I do think that the competitive standing and probably the management attitude (difficult to gage) is more important than the net net valuation by itself. My assumption is that many of them are value traps, but I think that is OK, as long as the downside is limited. if you have a bunch of those and some go up, while the other ones just sit there, the overall results would be decent and the risk not that high. Such an outcome would be OK with me.