Report
Dave Nicoski ...
  • Ross LaDuke
EUR 235.08 For Business Accounts Only

Int'l Insights: Bullish Japanese Industrial Stocks

Buy Japanese diversified industrials

Despite the recent global selloff in equities, Japan's TOPIX and Nikkei 225 remain above their respective ~1,670 and ~22,000-22,500 support levels. As long as these levels continue to hold we view recent weakness as a buying opportunity. Our international Group MF-05 Japanese Diversified Industrials is particularly attractive and actionable... see chart below. In this report we focus on six stocks with the best setups in the Group: Mitsubishi Corporation (8058-JP), DAIKIN INDUSTRIES, LTD. (6367-JP), Mitsubishi Heavy Industries, Ltd. (7011-JP), IHI Corporation (7013-JP), Hitachi Metals, Ltd. (5486-JP), and Sojitz Corp. (2768-JP). Add exposure.
Underlyings
ASKUL Corporation

ASKUL and its subsidiaries are mainly engaged in the mail order retailer of office-related products mainly to small- and medium-sized companies. Co. operates in three business segments: e-commerce, logistics and other. E-commerce segment is engaged in the retail sale of stationery, office supplies, office furniture, fixtures, interior supplies, computer peripheral equipment, daily commodities, sanitary products, medical supplies, nursing care products, home electronics among others. It also offers Internet mail-order service under the name of "LOHACO" for general consumers. Logistics segment provides storage, logistics, freight transport and distribution service for companies.

DAIKIN INDUSTRIES LTD.

Daikin Industries is engaged in the manufacture and sale of air conditioning and refrigerating equipment. The Air Conditioning and Refrigeration Equipment segment offers housing equipment including split type air conditioners, air purifiers and air to water heat pump systems; commercial equipment including packaged air conditioners, multi-split type air conditioners, water cooled chillers, medium/low temperature refrigeration equipment, air handling units, rooftop systems and air filters; and marine air conditioning equipment. The Chemicals segment offers fluorocarbon gases, fluoroplastics, fluoroelastomers, fluoro coating agents, semiconductor-etching products and fluorinated oils.

Mitsubishi Corporation

Mitsubishi is a trading company. Co. is engaged in the manufacture and market a wide range of products, including energy, metals, machinery, chemicals and living essentials through Co.'s domestic and overseas network. Co. is involved in diverse businesses by actively investing in areas, such as natural resources development and infrastructure; and the finance businesses. Co. is engaged in diversified businesses, such as creating new business models in the fields of new energy and the environment. Co.'s principal business segments are global environmental & infrastructure, industrial finance logistics & development, energy, metals, machinery, chemicals, living essentials, and others.

Mitsubishi Heavy Industries Ltd.

Mitsubishi Heavy Industries is a manufacturer of heavy machinery. Along with its affiliates, Co. is engaged in the design, manufacture, installation, sale and after-sales services of boilers, turbines, diesel engines, power generation facilities, passenger ships, liquefied natural gas ("LNG") ships, liquefied petroleum gas ("LPG") ships, container ships, oil tankers, offshore structure, civil aircraft and aero engine, defense equipment, space equipment, waste treatment systems, traffic systems, cranes, forklifts, construction and agricultural machinery, and others. Co. is also engaged in the sale, purchase and leasing of properties and the printing business.

Provider
Vermilion Research
Vermilion Research

Vermilion Research delivers timely, actionable, and unique research inputs to professional investors. Our research strategists highlight securities which we believe are at major inflection points, based on our various proprietary technical indicators, and offer asymmetric risk/return profiles. We believe our research methodology, which is not limited by industry sector or market capitalization, enables us to deliver superior investment recommendations.

Our process begins by organizing all actively traded stocks into coherent sectors, then into logical industry groups. We then apply our proprietary relative strength tools to identify developing price trends. Once attractive trends are identified within a selected sectors or groups, we screen for individual stocks which we believe offer the best risk/reward profile. Vermilion offers U.S. and global equity market research products. Vermilion’s research team, which has received numerous awards and accolades, has a combined 70 year of experience in the analysis of investment securities.

Analysts
Dave Nicoski

Ross LaDuke

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