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 July 15, 2024 at 10:00.*

As we pass through the sell-off of ETF distributions, which is a typical feature of July, how long will the bullish stance on the Nikkei average last? If we can keep it around the 0.04 million yen range, investors may have a happy summer vacation.

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

Although the sell-off due to the distribution of ETFs (listed investment trusts) that was expected to occur on July 8th and 10th has passed safely, the Nikkei average on the 12th was largely sold off, with a focus on semiconductor-related stocks, affected by the US market. However, it seems that more than 60% of the stocks in the main board market were rising, so we need to be careful about the magic of the Nikkei average numbers.

The outlook for Japan's economy and overseas situation is uncertain, but let's accurately select stocks that rise in response to investor expectations while considering topicality and performance. There has also been a report that the average summer bonus for large corporations this year is the highest since 1981, so the economy does not seem to be that bad at the moment. I hope that this money will flow into Japan's stock market through new NISA and other means.

Although there are still many criticisms about the weak yen, it seems that large corporations have benefited from it. The government, which intervened in the exchange rate to drive it toward a stronger yen, also announced that tax revenue in Reiwa 5 was the highest ever, so we can only hope for a prime minister who can properly distribute the profits obtained through taxes and exchange rate interventions for the sake of Japan in the next general election.

Amid growing expectations of a US interest rate cut, stocks with performance expectations and topicality continue to be sought after. We will closely monitor whether Japanese stocks, which have turned bullish, can withstand external conditions and build an upward trend over the medium to long term.

Amiya <4258>, which develops data security and network security businesses, has recently updated its year-to-date high. The company also announced an agency contract with Canon Marketing Japan <8060> for its own service, Network All Cloud, and its performance for the December 2024 period is stable. We are watching to see how the chart will look after the earnings announcement on August 14th.

Aoi Electronics <6832>, which we have been watching as a semiconductor-related stock, announced on July 9 that it will promote the construction of post-processing production lines for semiconductor assembly at Sharp <6753>'s LCD panel factory. The stock price has shown some movement after the announcement, and the earnings announcement on August 2nd is also worth checking.

SANKYO <6417>, a major manufacturer of pachinko and pachislot machines, seems to have seen speculative buying flow in with the large-scale shareholding by US BlackRock. We are also watching whether the chart will turn upward after the earnings announcement on August 7th.

Tenma <7958>, which is also being sought after with large-scale shareholdings by US investment fund Dalton Investments, is forming an upward trend by exceeding the 25-day moving average on its daily chart. Although the stock price has updated its year-to-date high, the PBR is still below 1, so it is still relatively undervalued. Its performance is also sound, and we are monitoring any movements in its earnings announcement on August 9th.

Finally, we picked up Yupo Corporation <7065>, which handles industrial resin parts, because the company has been showing momentum as it has updated its record-high earnings for three consecutive periods since its earnings announcement on July 11th. We have been watching it for a long time due to its undervaluation, and at this point where it is reminiscent of the high of 829 yen since February 2018, the PER is 0.82 times, and the PBR is 0.79 times, so there is still room for an upward trend.

The last stocks we picked up are YUPiR <7065> and Japan Pallet Pool <4690>, which handle pallets that are essential for logistics, as the Ministry of Land, Infrastructure, Transport and Tourism has for the first time established a unified standard for them. Both companies have sound performance, and we want to keep an eye on whether their business expansion will be accelerated by this unified standard.

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