At the beginning of every year we publish our PSA Perspective, a report intended as a long shelf-life look at the year ahead. This year Pelham Smithers discusses Japan's economy, the outlook for the stock market, and some stand-out themes and developments for the year. These include the digital yen and the demise of live action entertainment in Japan. We also update our noted PSA Focus List of stocks. Table of Contents Overview 3 Background: 4 Japan’s Economic Outlook 5 Ja...
Despite having been labelled as lockdown stocks, smartphone game companies have not been sold off to the same extent as have other Covid beneficiaries, such as EC companies, against the backdrop of the reopening of the economy. That smartphone game stocks have been relatively resilient suggests that the services they provide have become a part of people’s daily lives. The fact that restrictions to movement have been lifted does not mean that people will stop playing smartphone games or reduce th...
Although the Japanese economy, politics and stock market seem to be where they were this time last year, there is a seismic shift going on in the way the Japanese stock market behaves that could make investing in Japan in 2022 quite different to previous years. We look at how and why this shift has taken place and what it means for investing in Japan in the coming year.
BASE Inc has moved from being a star market performer in 2020 as investors bought up Covid-19 lockdown winners to being one of the biggest losers this year. Its share price has lost 61% YTD, vs a 4% decline in the Mothers Index and a 4% gain in the Communication sector. Now that the impact of Covid-19 pandemic has abated, growth will likely normalise, but market competition is rising with new players backed by big internet companies. Despite the share price’s underperformance, we don’t currently...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
Pelham Smithers presents his strategy for Q3 2021 and the changes to PSA's stock Focus List Table of Contents Overview 3 Background 4 Valuations & Value 5 The Case for “Muddle Through” 6 Consumer Spending 7 The Labour Market 7 The Currency and the Carry Trade 8 The BoJ and Policy 9 Japan’s Stuttering Economy 10 Stock Performance and Earnings Expectations 12 Catalysts: Digital Transformation, Semiconductors, Price Hikes ...
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