Characteristics of stocks that will play a leading role in the post-Corona “2022 Japanese stock market explosion”

On December 16, 2009 (Japan time), Jerome Powell, chairman of the Federal Reserve, issued a statement that three interest rate hikes within 2010 are certain. As interest rates rise, the U.S. economy is expected to grow. As interest rates rise, it will be difficult for U.S. stock prices to rise, while the global money glut will continue. I believe that undervalued Japanese stocks will certainly be an option for the money to flow into the U.S.” (Tomoyuki Fujimoto, stock critic)

It looks like 2010 will be a bright year. The monetary easing policies of various countries during the Covid-19 disaster certainly boosted stock prices in Japan. However, the main players in the Covid-19 disaster were growth stocks (companies with high growth rates in sales, profits, etc.). In Japan, there are many value stocks (companies whose stock prices are undervalued compared to their corporate value), so it cannot be said that Japan has benefited 100% from this trend in the past. This year, however, the situation is expected to change dramatically. Yasuo Ueki, a securities analyst, explains.

I think we will start to see a convergence of the Covid-19 from the second half of ’22 due to the spread of oral drugs and other factors, and inflation will become more pronounced. During periods of rising interest rates and inflation, value stocks tend to take center stage. I believe that the Nikkei Stock Average will gradually start to rise due to the increase in the price of large value stocks, and that the Nikkei Stock Average will reach 35,000 yen by the end of the year. I think we will see the Nikkei average reach 35,000 yen by the second half or end of 2010.

There’s no way not to take advantage of this surge in Japanese stocks. Let’s take a look at some of the stocks I recommend. The experts all recommend stocks related to semiconductors.

With the spread of AI (artificial intelligence), 5G, and EV (electric vehicles), the demand for semiconductors will continue to expand, and the semiconductor manufacturing market will continue to grow. The semiconductor manufacturing market will continue to grow. Lasertec develops and sells inspection and measurement equipment that is essential for semiconductor manufacturing. Lasertec develops and sells inspection and measurement equipment that is indispensable for semiconductor manufacturing, and Adtec Plasma Technology is the largest manufacturer of high-frequency power supplies for plasma, mainly for LCD and semiconductor equipment. I think these are the ones to watch,” said Nobuhiro Tomatsu, president of Global Link Advisors.

There are many processes involved in the manufacture of semiconductors. (Nobuhiro Tomatsu, President of Global Link Advisors) Semiconductors have many processes to manufacture, which is why there are many places to target. Mr. Tomotaro Tajima, an economic analyst, explains.

Mr. Tomotaro Tajima, an economic analyst, says, “Cleaning accounts for 30 to 40% of the semiconductor manufacturing process. It is essential to wash, wash, and wash all the time. What is needed is high-purity water called ‘ultrapure water. No matter how precisely a semiconductor is made, it will not perform well if it is washed with water that contains impurities. Therefore, the demand for companies involved in the production of this ultra-pure water or manufacturing equipment will increase. This includes Nomura Micro Science, Organo, and Kurita Water Industries.

The automotive industry is also not to be overlooked, with the wave of EVs sweeping through the market. Genichiro Amami, a stock journalist, tells us.

On December 14, 2009, Toyota Motor Corp. announced its plan to increase new EV sales to 3.5 million units per year by 2008. Tesla, the world’s top EV manufacturer, sells 1 million EVs a year, so you can see how big Toyota’s figure is. Denso, the core parts manufacturer of the Toyota Group, and Toyota Tsusho, a Toyota-affiliated trading company that is supposed to procure battery materials and other materials needed by Toyota for its EVs, are also good candidates.

Capturing revenge consumption

In the new energy field, which is growing rapidly, companies that have strengths in their field will become targets.

The Mitsubishi Group’s Chiyoda Corporation is developing SPERA hydrogen, which can be stored at room temperature and pressure. The fact that hydrogen cannot be transported without compression or liquefaction has been a bottleneck, but with this technology, the company has taken a step forward. Renova, which is involved in the generation and development of renewable energy, is probably the only company that foreign investors will target when they look at Japanese stocks for ESG investments (investments that take into account environmental, social, and governance factors). (Hideki Wajima, an economic journalist).

There is no doubt that the DX field will continue to grow in 2010. Yasuaki Fujine, a stock analyst, said.

In addition to the new Covid-19 epidemic, the number of companies promoting business efficiency through DX will continue to increase due to the reform of work styles. Sun’s Asterisk, which supports the digitization of businesses, is a great example. Asterisk, which supports the digitalization of business, and In-Source, which has the know-how to convert employee skills into data, are noteworthy. I think Sun Asterisk, which supports business digitalization, and InSource, which has expertise in converting employee skills into data, are worth watching.

In addition to the spread of vaccination, oral coronas are expected to be widely available in 2010. In addition to the spread of vaccinations, the spread of oral coronas is expected in 2010, and this will lead to a V-shaped recovery in the travel, food and beverage industries.

It’s only a matter of time before the food and beverage industry recovers with a vengeance. As for Gurunavi, once With Covid-19 is in full swing, more people will go out to eat, and the company’s business performance will also recover. Gift, which operates the Yokohama family ramen restaurant Machida Shoten, continues to expand its earnings by aggressively opening new restaurants. I think the company will be able to successfully capture revenge consumption,” said securities journalist Hiroaki Konno.

There are other stocks to watch. There are other stocks to watch.

Mr. Fujimoto said, “There is a company called JALCO Holdings, which is engaged in money lending and real estate leasing for the amusement industry, including pachinko and pachislot. Currently, the pachinko industry is being forced by regulations to shift to a system of counting payouts using electronic devices set inside the machines. A huge investment is required to install this measuring device (about 100,000 yen per machine) in each machine. I think it is highly likely that many companies will take out loans from this company.

The list goes on and on. This is an opportunity that should not be missed.

All stock prices in the chart are as of December 24, 2009. All share prices in the chart are as of December 24, 2009 and have not been adjusted for stock splits or consolidations.

From the January 21, 2022 issue of FRIDAY