Below is a comment written by a personal investor, "Sanasae", a Fisco Social Reporter (blog: 'Sanasae's Beautiful Investment Life'). At Fisco, we work to collaborate with individuals who actively disseminate information to provide a greater variety of information to investors.
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※Written on August 12, 2024 at 12:00
Hello everyone, good morning/afternoon/evening. Despite the market's big sell-off and volatile trends, there are people out there who are still looking for good stocks to invest in. As for myself, I spend my days keeping an eye on such stocks and grinning from ear to ear.
This is the second year of my series written by a female investor in her forties, who won the runner-up in the Yukan Fuji-sponsored Stock 1GP Grand Prix (21st fiscal year)...and this is already the 81st installment. This time, along with the column in the title, we will introduce some of the recent notable stocks.
Although there have been many market sell-offs in the past due to various reasons such as the coronavirus and China shocks, the big sell-off on August 5th was still a bit unclear as to what actually caused it. The market was affected by concerns over the US economy slowing down (?), policies of the US, Japan and China central banks (?), and rollback of carry trades (?), none of which quite seem to add up.
However, looking back at the time through the VIX index, which expresses investor anxiety about future market trends, in normal times the market is in a state of panic if the index exceeds 20, and a crash market if it exceeds 40. The sell-off on August 5th reached a number of 66, following 83 in February 2020 during the coronavirus shock and 81 in November 2008 during the Lehman shock. In other words, it was a significant 'market crash'. However, the historical drop of only 4,451 yen that happened only in Japan was quite noticeable, and I think 'super panic selling' is an appropriate term for this number.
However, at a personal level, I consider that the accumulation of long positions of hedge funds in the yen depreciation/dollar appreciation in the so-called bubble state in carry trades, and the continuous liquidation of positions triggered by Japan's Bank of Japan additional rate hikes at the end of July and concerns about a slowdown in the US led to the collapse of the bubble, which is the biggest factor.
However, if there are no major significant factors causing long-lasting waves or unease, investors might just as well take advantage of this lower market of opportunity. In addition, I would like to introduce a few stocks that I have recently been bullish on.
First of all, it's Daikyo Nishikawa <4246>, which has moved in the latest earnings report. The company manufactures and sells plastic components for automobiles, etc. The company's performance has changed dramatically in the earnings report on the 8th, and it has been well received with upward revisions in earnings for this fiscal year. With the same company's stock price being quite undervalued, we can expect a rebound from here. Similarly, Suzuki <6785> in the auto parts industry announced its second-highest profit for the second year in a row in the earnings report on the 8th, and with a dividend increase of 34 yen, it has reached a stop-high on the 9th indicating that it is aiming high. Again, this stock remains undervalued. Zero <9028>, which handles the new car and used car transport for Nissan Motor Co., also rose again on the 8th with good earnings and dividend payout. It is worth considering due to its low valuation.
I am also looking at semiconductor-related stocks, which are expected to rebound from the selling of high-tech stocks before the sell-off. Laser Tech<6920> showed its continued growth in sales in the earnings report on the 7th, and with the announcement of a dividend increase, attention is focused on purchases by large funds such as overseas investors. In fact, seeing the contents of this earnings report, even large securities companies have upgraded their ratings. Wai-Yee-Y-S.HD <6298>, which will announce earnings on the 13th, is expected to improve its business performance. However, the stock price is already undervalued (※This article was written on the 12th). Tatumo <6266>, which performed well in the earnings report on the 9th, and Lowes <6323>, which has a strong semiconductor equipment business, should also be watched from here, as both have corrections due to the rapid sell-off market.
Finally, I would like to introduce some individual stocks that I recently have been keeping an eye on... Meidensha <6508>, which showed a dramatic improvement in its business performance in the earnings report on July 31st. Maruun <9067> with its strong earnings in the earnings report on the 7th, is expected to be a supplier related to 'hydrogen' that is actively invested in by Japan's public and private sectors, and the stock is also being watched as a PBR 1:1 stock (※This article was written on the 12th).
Yes, that's all for this time.
In my recent blog, in addition to the stocks introduced above, I pick up the 'Top 3 Stocks to Watch' every month as 'Sanae's Solo Stock 1GP' and measure their price range every weekend. Of course, there are various topics other than stocks... Please feel free to enjoy it even if you are curious or scared (lol). Well then, have a nice trade.
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Author name: Sanasae
Blog name: 'Sanasae's Beautiful Investment Life'