In response to an article I published yesterday, “Goldman forecasts recovery in Japanese stocks from mid-2009″, which was carried on Seeking Alpha, a reader asked for some “big cap” stocks trading at/near book value, among other things. Following is a quick list of select stocks with ADRs.
Trading below book value
- FUJI FILM (4901) (FUJI) — 0.89x book; 1.04% dividend yield; at the bottom of its 52-wk trading range
Nissan (7201) (NSANY) — 0.95x; 4.9%; at bottom of 52wk range
Wacoal (3591) (WACLY) — 0.97x; 2.0%; near bottom of 52wk range
NTT (9432) (NTT) — 0.95x; 1.7%; near top of 52wk range
ORIX (8591) (IX) — 0.92x; 2.0%; at bottom of 52wk range
Stocks trading “near” book value
- Mitsubishi UFJ (8306) (MTU) — 1.12x book; 1.7% dividend yield
TDK (6762) (TDK) — 1.12x; 2.1%
Kyocera (6971) (KYO) — 1.17x; 1.3%
Sony (6758) (SNE) — 1.21x; 0.6%
Hitachi (6501) (HIT) — 1.23x; 0.75%
Matsushita (6752) (MC) — 1.24x; 1.6%
Toyota (7203) (TM) — 1.27x; 2.9%
*Above stock information applicable to ordinary shares and based on Aug. 27, 2008 market close in Japan. Source: Yahoo! Finance Japan.
FD: No position in any stocks mentioned.
Thanks. Japan been underperforming for over a decade. trying to figure out when this market will start out performing. own slug of mtu. trading at low price to book value and waiting for the profit surge. net income margins are very low.
very little subprime sludge and plenty of capital to grow and take advantage of depressed financials.
Keep the ideas coming. this market will surprise at some point.
Maybe best way is to play ewj?
No problem. I think Japanese stocks could become an upside surprise story, but this will be driven by those in Kasumigaseki and benefit mostly the domestic-demand stocks. That said, cannot say unequivocally that EWJ is the best play, but in terms of liquidity, expenses and diversification, it just might be for U.S. retail investors.