The following is a comment written by individual investor "G有限亭玉介" of Fisco Social Reporter (blog: Profitable Stock Information "Cat Husband's Stocks are Limitlessly High"). At Fisco, efforts are made to actively disseminate diverse information to investors by collaborating with individuals who proactively share information.

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*Written on December 9, 2024, at 12:00.

Looking back, it has been a year swayed by politics, with the Ueda shock and Ishiba shock. I would like to think about how to wrap up this year while analyzing the market. Even in a lackluster market, it is hoped to steadily make profits without being complacent until the end.

Once again, my name is G有限亭玉介, and I am writing the stock and cat blog "Profitable Stock Information 'Cat Husband's Stocks are Limitlessly High'."

Overseas investors may be gradually withdrawing from the Japanese market due to the strong performance of US stocks and the high interest rates of US bonds. The US employment statistics announced on December 6 also showed very strong numbers that exceeded market expectations, suggesting that the momentum in the USA is likely to continue.

Japan's economy is not bad, but to be honest, it does not feel as dynamic as that of the USA. The future of the Ishiba administration from the end of this year into next year is uncertain. Additionally, Japan's interest rates are gradually rising over time, so it is necessary to pay attention to how Japan's economy and personal consumption will develop in the medium to long term.

One point of concern is that according to the Tokyo Stock Exchange's investment sector trading situation, while overseas investors indeed sold more than they bought during the third and fourth weeks of November in both markets, it seems that overseas investors are net buyers when looking at the Standard and Growth markets. This may indicate that money is flowing from large value stocks into high-growth, well-performing growth and Australian Small/Mid Cap stocks.

Although there are large Market Cap stocks in the Standard Growth market, it cannot be simply stated that Australian Small/Mid Cap stocks are being bought. It is always necessary for investors to maintain an attitude of continually searching for where the market offers potential opportunities. If there are stocks with high earnings expectations that are in an uptrend but have not yet reached overheating, one would want to actively aim for price fluctuations.

Aidoma HD <7373>, which updated its highest profits for the eighth consecutive term in the earnings announcement on October 11, is expected to update its highest profits again in the fiscal year ending August 2025. The chart (daily) has been gradually increasing the lower bounds since late November. The company, which develops management support businesses, has prospects related to DX.

Daiichi Jitsugyo <8059>, which has prospects related to geothermal power generation, is gradually forming an uptrend on its long-term weekly chart. This machinery trading company is performing well across multiple sectors including Energy, Automobiles, and Health Care. In the most recent earnings report, an increase in Dividends was also announced, with operating profit for the fiscal year ending March 2025 projected to be the highest.

Tokyo Cosmos Electric <6772>, a variable resistor manufacturer, appears to be attracting speculative buying due to purchases from Swiss-Asia Financial Services, known as an activist. Although the most recent earnings showed a decrease in profits, there is a trend of increasing Dividends, and future developments are being closely monitored.

Fixstars <3687>, with prospects related to AI, Datacenter, and Quantum Computers, is expected to update its highest profits for the fiscal year ending September 2025. The chart (daily) has rebounded from a downward trend and is now above the 25-day and 75-day moving averages. The company has excellent technology, with high achievements related to the supercomputer "Fugaku," and is being monitored for any developments that could excite the market.

Discharge Precision Processing Research Institute <6469>, which is the domestic leader in Metal discharge processing and Aluminum extrusion molds, is a hidden defense-related company checking its capital and business alliance with Mitsubishi Heavy Industries <7011>. Attention is being focused on whether it can break out from the low price range and establish an upward trend.

Finally, Headwaters <4011>, which provides solutions utilizing AI, made a rapid movement after announcing a strategic capital and business alliance with BTM <5247> on November 28, along with a Stock Split from one share to two shares. On December 2, it announced the strengthening of generative AI services for the automotive industry, featuring the car-mounted edge AI agent as the first phase, which is rich in potential developments.

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: Yūgentō Gyokusuke

Blog name: The Cat Husband's Stocks are Limitless