Active Investing in Japan

Haven’t heard of D&M Holdings? Well, then maybe you’ve heard of D&M’s premium audio brands: McIntosh, Marantz, Denon, Boston Acoustics and more!

D&M trades on the Tokyo Exchange, TOPIX-1: 6735.

Shares of D&M surged 14% to Y407 intra-day Monday on a Daiwa Institute of Research upgrade to a “1″ from a “2″ with a target share price of Y600. continue reading…

Well, so much for any Barron’s bounce following their bullish piece on Japan over the weekend. For starters, the Nikkei fell apart late Monday in the morning session and never had a chance in the afternoon. To make matters worse, U.S. futures were in the red from early on Monday and selling gained momentum intra-day. To credit Barron’s, which consistently seems to be bullish on Japan late in the year, Japanese stocks are indeed oversold (TOPIX 25-DMA A/D 64%) and if anything, due for a technical rebound. However, there’s nothing readily apparent to sustain the gains. Furthermore, their bullish reporting on small caps is misleading, but that is best left to another post or private consultation. continue reading…

Japan market summary for Monday (Nov. 19)
Nikkei 225 Stock Average: -112.05 (-0.7%) to 15,042.56; 17 1/2 month-plus low
Nikkei 225 futures Osaka: -120 (-0.8%) to 15,070, Singapore (SGX) -100 (-0.7%) to 15,100, Chicago (CME) *11/16 +5 (+0.0%) to 15,190
TOPIX: -15.06 (-1.0%) to 1,456.61; Advancers 356 x decliners 1,287 (unch. 80), New highs 4 x new lows 295
Nikkei Jasdaq: -14.08 (-0.8%) to 1,749.15
Yen: weakened 0.3% to the 110.50-55 level against the US$ late in Tokyo; weakened 0.5% against the euro to the 161.75 level
Notes: MOTHERS and HERCULES both traded lower amidst broader market weakness, losing 2.0% and 2.7%, respectively. Stocks were weak across Asia. Expect more of the same in the U.S. holiday-shortened week.