Following the recent results season where several leading semiconductor and SPE companies globally produced either disappointing results or guidance, we look at where the semiconductor industry is at present, where it looks to be headed in 2025 and identify opportunities in the Japanese IC / SPE space.
Micron’s FY24 results are a reminder that the chip industry is still doing well. Pelham Smithers considers what is reflected in the shares price of the wafer fab equipment makers and highlights two Japanese plays that offer undemanding valuations.
The Japanese stock market is in an interesting phase where the Bank of Japan is supporting the bond market rather than the stock market. While this phase lasts, the dollar should remain above ¥120/$ and perhaps strengthen further against the yen. This report looks at what this phase might mean for the Japanese stock market as a whole, and for stock selection. The PSA Focus List has also been updated.
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.
It has been nine years since a downturn generated sizable losses for the semiconductor industry and 12 years since the Lehman Crisis led to major structural changes. The length and size of the upcycle has led to worries that the cycle is about to peak and when it does, the downturn could be brutal for both the industry and investors. The current uncertainty is heightened by shortages in many types of semiconductors, with average delivery times pushed out to 20 weeks. Some customers are having to...
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....
After numerous trade war escalations and setbacks, it is easy to become resigned to the belief that there will be no end to the trade war. We have come to expect the unexpected when it comes to President Trump's tactics, so the best course of action may be to assume nothing. Last week's “Phase 1†US-China trade agreement is certainly a step in the right direction, and for now we are taking the truce at face value as a positive development while also knowing that the risk of setbacks/escalati...
Favor EAFE over EM The U.S. dollar remains elevated and as long as this remains the case we believe developed international equities (EAFE) will continue to outperform relative to emerging markets (MSCI EM)... see charts below. Below we highlight attractive and actionable themes within developed international: • Australia. Australia's All Ordinaries index exhibits bullish price and RS trends, a rarity when it comes to global markets considering most country-specific indexes display neutral o...
Fed cut, now what? The Fed's 25 bps cut and Powell's evasiveness in committing to a new easing cycle was seen as more hawkish than expected. In our opinion Powell was essentially saying the Fed will act as appropriate moving forward, and we can't blame him considering this was largely an “insurance cut†as opposed to a rescue attempt to avoid recession, and we may or may not need additional insurance moving forward. Overall the weight of the evidence supports further consolidation - i.e., n...
Japan Market Comment by Pelham Smithers, Julie Boote and Joel Scheiman Nikkei ¥21,824.03 (+¥354.83 / +1.65%); Topix ¥1,741.30 (+¥25.82/ +1.51%); ¥/$106.59 Tags: Alps (6770 JP), Eisai (4523 JP), Merck (MRK US), Universal Entertainment (6425 JP), Wynn (WYNN US), Ulvac (6728 JP), Tokyo Seimitsu (7729 JP), Canon (7751 JP), Samco (6387 JP), Spotify (SPOT US), Sony (6758 JP), Warner Music (unlisted), Honda (7267 JP), Toyota 7203 JP), Miraial (4238 JP), Samsung (005930 KS), Shin-Etsu Polymer (797...
Japan Market Comment by Pelham Smithers, Julie Boote and William Nestuk Nikkei ¥21,925.10 -¥224.11/ -1.01%); Topix ¥1,762.45(-¥12.70 / -0.72%); ¥/$106.84 Tags: Nissha (7915 JP), Hodogaya (4112 JP), Ulvac (6728 JP), Chugai Pharmaceutical (4519 JP), Tokyo Steel (5423), Fujitsu (6702 JP), Japan Cash Machine (6418 JP), Universal Entertainment (6425 JP), Sony (6758 JP), Checker Cab, Daiwa Motor Transportation (9082 JP), Uber, Daiichi Koutsu Sangyo (9035 JP), Alphabet (GOOG US), Apple (AAPL US), Mit...
Ford Equity International Research Reports cover 60 countries with over 30,000 stocks traded on international exchanges. A proprietary quantitative system compares each company to its peers on proven measures of business value, growth characteristics, and investor behavior. Ford's three recommendation ratings buy, hold and sell, represent each stock’s return potential relative to its own country market.. The rating reports which are generated each week, include the fundamental details behind...
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