Although Shinsei Bank (JP: 8303) recently traded as low as ¥543 intra-day, on 3/29, we think this is a stock to watch in the lagging financial sector. It could be a trade, but we are eyeing a longer-term position. It had a 9.4% run from the low on 3/29 to Monday’s intra-day high of ¥594 — so a pull-back here is understandable. No rush to buy or go all-in; look to add perhaps around ¥565, which is a 5% retreat.

Shinsei is an interesting banking play, which features growth opportunities even if the financial sector continues to struggle, and I’m not only referring to Japan — it is rather ambitious, in a good sense, in expanding abroad. Its embracing of IT, will certainly bring it advantages against domestic/overseas (Asian) competitors.

Disclosure: We are long-term shareholders of Shinsei and intend to add to our position as appropriate. We are advising clients to buy/add.