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 November 18, 2024 at 2:00 PM

With the emergence of President Trump, there seems to be a clear distinction between Trump-related stocks and others. The appointment of Mr. Elon Musk as the head of the Department of Government Efficiency and the record high of Bitcoin suggest uncertainty regarding the future stock market.

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

With the completion of the elections in Japan and the USA, the market is gradually leaning towards risk-on sentiment. There is hope for President Trump to promote deregulation and public investment in the future. However, it must be remembered that President Trump's "America First" policy, such as imposing high tariffs on China, affects not only Japan but the global market as well. The stock market views such uncertainties in a negative light.

To be frank, it is hard to imagine Prime Minister Ishiba negotiating and building a friendly relationship with President Trump. The scheduled meeting with President Trump was even called off, and Prime Minister Ishiba himself seems fully occupied with prolonging his term, showing little interest in diplomacy.

While predicting the future of politics may be challenging, the significant depreciation of the yen towards the 150 yen to the U.S. dollar range is concerning. If the yen remains in this range, the Bank of Japan may decide on a rate hike at the monetary policy meeting in December. Even in a bullish market, it is advisable to be prepared to act immediately in case of a crash.

Although we chatted idly, I strive for a prudent investment approach even in a market that appears to be risk-on. It should not be too late to shift to an offensive stance once the political uncertainty factors are eliminated.

Now, I will pick up undervalued stocks with performance expectations and good charts this time as well. THK <6481>, which announced its earnings on November 12, showed signs of recovery from the bottom zone. The announcement of a share buyback on the same day was well received. The company, a machinery component manufacturer focusing on LM guides, is also benefiting from the weak yen.

Honda-affiliated component manufacturer H-One <5989> received favorable responses to its earnings announcement on November 12. The company, which manufactures body frame components, seems to have expanded its performance through appropriate pricing and the weak yen. Its p/e ratio and p/b ratio are at undervalued levels, and we are closely monitoring whether the Ichimoku cloud breakout on the monthly chart can form an upward trend.

Ohashi Technica <7628>, which also gained momentum after its earnings announcement on November 12, received positive feedback for its share buyback as well. As an auto manufacturer, with a p/b ratio of less than 1, its recent stock price has reached a new high for the year.

Yushiro Chemical <5013>, the largest metalworking oil agent, significantly surpassed the 25-day and 75-day moving averages after its earnings announcement on November 8. Price revisions have contributed to performance, and the forecast for the fiscal year ending in March 2025 is to achieve a record profit. The company has also announced an increase in dividends, and even after the momentum, its p/e ratio and p/b ratio remain at undervalued levels.

Yukengogyo <6393>, which announced upward revisions and increased dividends in conjunction with its earnings release, is also performing well. Being a major player in hydraulic equipment alone, the company is monitoring how far it can raise its lower limit following the momentum. The dividend yield just after the earnings announcement exceeds 5%, and the p/e ratio and p/b ratio are also undervalued.

Lastly, Fujikura Composite <5121>, which handles rubber products and industrial materials, also has p/e and p/b ratios at undervalued levels, reaching new year-to-date highs with momentum after the earnings. The fiscal year ending in March 2025 is expected to achieve a record high operating profit, and it is worth watching for the possibility of upward revisions even after the 3rd quarter earnings.

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