What Worked Japan - 30 Jun 2017 - Value and High Beta names dominated this week

What Worked

Value and high Beta named dominated this week. Low PBR names have not done this well since last August. Low PBR names have been stuck in a slump since the middle of April. Low PBR names that did well this week were Kobe Steel up 11% and JFE Holdings up 9%.

High Beta names also did well this week. The last time Beta was this strong was back in December of last year. High Beta name that did well were Hitachi Metals up 10% and TADANO up 9%. On the other side, names up over the last three months were really hurt the most this week. Toshiba is down 11%, Tokyo Electron is down 6% and Sohgo Security Services is down 5%. High ROE names also did not do well this week. Nitori Holdings is down 9% and Temp Holdings is down 7%. There was also a slight selloff in Size this week.

Who Moved

Only 11 names moved on volume this week. On the positive side, Oracle Corp is up 6% and Taiheiyo Cement is up 5%. On the other side, Sumitomo Dainippon Pharma is down 10% and Takashimaya Corp is down 6%.

Summary

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What Worked Japan - 23 Jun 2017 - Quality worked and really nothing else stood out

What Worked

Low Debt to Equity and high ROIC names did the best this week. Low Debt to Equity names that did well were Murata Manufacturing (6981) up 11%, Zeon Corp (4205) up 10% and Alps Electrics (6770) up 9%. Low Debt to Equity names have only done this well once in the last 2 years. High ROIC names that did well were Yamaha (7951) up 6%, Hitachi Chemical (4217) up 7% and OBIC (4684) is up 7%.

On the other side, there was a slight selloff in low PBR names. Low PBR names have not really done well since the middle of April. Low PBR names that were hurt were Nomura Real Estate Holdings (3231) down 13%, Hokuriku Electric Power (9505) down 5% and Nippon Yusen Kabushiki Kaisha (9101) down 4%. All other factors were pretty much insignificant.

Who Moved

Only 13 named moved on volume this week. On the positive side, Murata Manufacturing (6981) is up 11%, Taiyo Yuden (6976) is up 7% and Aiful Corp (8515) is up 5%. On the other side, there was only one name down on volume this week, Tsumura (4540) down 1%.

Summary

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What Worked Japan - 16 Jun 2017 - Beta and Long-term momentum names were hurt this week

What Worked

Long-term momentum and high Beta names were hurt this week. Long-term momentum names have not done this poorly since the end of March this year. Disco (6146) is down 10%, Furukawa Electric is down 10% and Toyo Tire & Rubber (5105) is down 9%.  High Beta names also did not do well this week. Beta has only worked 1 out of the last 6 weeks. High Beta names that outperformed this week were Maeda (1824) is up 8%, Toshiba (6502) is up 7% and Daiwa House Industry (1925) is up 6%.

To a lesser degree, growth names did not do well this week. Sumco (3436) is down 9%, Nippon Paint Holdings (4612) is down 8% and Tokyo Electron (8035) is down 7%.

Who Moved

Only 10 names moved on volume this week. On the positive side, Tsumura (4540) is up 11%, ONO Pharma (4528) is up 9% and Aiful (8515) is up 3%. On the other side, Mabuchi Motors (6592) is down 8%, Nippon Paint Holdings (4612) is down 8% and Softbank Group (9984) is down 4%

Summary

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What Worked Japan - 02 Jun 2017 - High beta names bounced back as high dividend yield names continued to be hurt

What Worked

After 3 weeks of poor performance, names with high Beta to TOPIX and Beta to the Yen bounced back this week. H2O Retailing (8242) is up 9%, Dowa Holdings (5714) is up 10% and TADANO (6395) is also up 9%. There was a slight sell-off in names with high dividend yield. This is the 5th week in a row that high dividend yield names have not done well. However, with only 51 names down in TOPIX 500 this week it was more about which names did not go up as much. Park24 (4666) is down 6%, FamilyMart (8024) is down 4% and Oracle Corp Japan (4716) is down 4%.

Names with a high percent of Institutional Investors did better this week after doing poorly over the last month. Showa Denko (4004) is up 12% and Tokyo Ohka Kogyo (4186) is up 10%. Long-term momentum names were up while short-term momentum names were hurt this week. Mitsui Mining and Smelting (5706) is up 5% and MinebeaMitsumi (6479) is up7%.

Who Moved

Only 24 names moved on volume this week. On the positive side, Tosoh Corp (4042) is up 8%, Miraca Holdings (4544) is up 7% and Sysmex Corp (6869) is up 6%. On the other side, Oracle Corp (4716) is down 4%, Fuji Media Holdings (4676) is down 2% and Otsuka (4768) is down 1%. All on strong volume.

Summary

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What Worked Japan - 19 May 2017 - Value and Beta hurt for the second week in a row

What Worked

Value and high Beta names were hurt for the second week in a row. High Beta and low PBR names did poorly this week and the last after 1 month of outperformance. Before that both factors underperformed for 5 weeks straight. Low PBR names that were hurt were Idemitsu Kosan (5019) down 11%, Japan Petroleum Exploration down 10% and Central Glass (4044) down 10%.

High Beta names that went down were NTN Corp (6472) down 14%, Mitsubishi UFJ Lease & Finance (8593) down 9% and NSK (6471) down 9%. Names with a high ROE and to a lesser degree names with a high percent of Retail Investors benefited from the selloff in Value. Leopalace21 (8848) is up 9%, Toyo Tire & Rubber is up 9% and Toda Corp (1860) is up 7%.

Who Moved

101 names moved on volume this week. All the volume spikes look to be spread relatively evenly across all sectors. On the positive side, Nomura Real Estate (3231) is up 20%, Miura (6005) is up 10% and Shiseido (4911) is up 9%. On the other side, including the names mentioned above Isuzu Motors (7202) is down 11%, Japan Steel Works (5631) is down 10% and Hitachi Zosen (7004) is also down 9%.

Summary

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What Worked Japan - 12 May 2017 - Selloff in low PBR and high Beta names and into Quality

What Worked

There was a selloff in high Beta and Value, particularly low PBR, names this week. Low PBR names that went down this week were Isetan Mitsukoshi (3099) down 10%, Hitachi Zosen (7004) down 11% and Shinsei Bank (8303) down 8%. High Beta names that were also hurt were Subaru (7270) down 8%, Taiyo Nippon Sanso (4091) down 8% and Konica Minolta (4902) down 7%.

Quality names and to a lesser degree large-cap names benefited from the rotation away from Beta and Value. High ROE names that did well this week were COLOPL (3668) up 12%, Zenkoku Hosho (7164) up 11% and Start Today (3092) up 12%.

Who Moved

Strong volume week. 101 names moved on more than 1 standard deviation of volume. The volume spikes look to be spread relatively evenly across all sectors. On the positive side, Benesse Holdings (9783) is up 18%, Mitsubishi Tanabe Pharma (4508) is up 11% and IHI Corp (7013) is up 10% On the other side, Kakaku.com (2371) is down 8%, Meitec Corp is down 7% and Asahi Glass (5201) is down 6%. Isetan Mitsukoshi and Subaru mentioned above also moved on strong volume.

Summary

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What Worked Japan - 28 Apr 2017 - Low PE and High Beta names continue to do well

What Worked

Only 44 names in TOPIX 500 were down this week. However, there was a clear rotation away from names up over the last month into underperforming names. Izumi (8273) is down 2%, Peptidream (4587) is down 0.4% and Kyowa Hakko Kirin (4151) is up just 1%. Low PE names continue to outperform. This is the third week in a row that low PE names have done well. Showa Denko (4004) is up 22%, Tokuyama Corp (4043) is up 14% and Alps Electric (6770) is up 11%.

High Beta names also have down well in the last 3 weeks after 2 months of underperformance. Daido Steel (5471) is up 20%, Ibiden (4062) is up 16% and IHI Corp (7013) is up 12%. Names with a high % of Institutional Investors also outperformed this week. DMG Mori (6141) is up 11% and Capcom (9697) is up 9%.

Who Moved

32 names moved on volume this week. On the positive side, Showa Denko (4004) is up 22%, Daido Steel (5471) is up 20% and OBIC (4684) is up 12% all on strong volume. On the other side, ITO EN (2593) is down 1.5%, LINE (3938) is down 1% and Park24 (4666) is down 1%.

Summary

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What Worked Japan - 21 Apr 2017 - Move into High Beta names and slight move away from Large cap

What Worked

With Earnings Season starting next week, there was not a lot that stood out. As with most pre-earning weeks, most of the factors were insignificant. However, there was a move into high Beta names and a slight move away from large-caps.

High Beta names that did well this week were Aiful Corp (8515) up 8%, NOK (7240) up 7% and DeNA (2432) up 7%. Large-cap names that were down this week were Idemitsu Kosan (5019) down 5%, Fujifilm (4901) down 4% and CyberAgent (4751) down 3%. 

Who Moved

Only 15 names moved on volume this week. On the positive side, Kyowa Hakko Kirin (4151) is up 13%, Aiful (8515) is up 8% and Toho (9602) is up 6%. On the other side, Maruha Nichiro (1333) is down 6%, AEON (8905) is down 3% and Japan Post Holdings (6178) is down 1%. 

Summary

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What Worked Japan - 07 Apr 2017 - Beta hurt hard again after being destroyed two weeks ago

What Worked

High Beta names took another huge hit this week, almost as bad as two weeks ago. However, this week Value was hurt more than it was two weeks ago. High Beta names that were hurt were Toshiba (6502) down 10%, Mitsui Mining and Smelting (5706) down 7% and Taiyo Yuden down 7%. Low PBR names that went down this week were Tokai Rika (6995) down 7%, Dai-Ichi Life (8750) down 7% and Resona Holdings (8308) down 6%.

On the other side, Growth names did well this week and have continued to do well since the beginning of February. However this is the best week for growth names since the rally started. Seven & I Holdings (3382) is up 6%, Shimamura (8227) is up 5% and Ezaki Gilco (2206) is up 6%.

Who Moved

80 names moved on volume this week. This is compared to an average 22 names moving on volume weekly in March.  Volume spikes look to be spread relatively evenly across sectors. On the positive side, Sohgo Securities Services (2331) is up 11%, Nitori Holdings (9843) is up 7% and Shimamura (8227) is up 5%. On the other side, Kewpie Corp (2809) is down 9%, Hitachi Metals (5486) is down 6% and NSK (6471) is down 6%.

Summary

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What Worked Japan - 17 Mar 2017 - Low PBR and High Beta names were hurt this week

What Worked

Pretty good selloff in high Beta names and names with low PBR this week. Value, particularly PBR, has not done well since the second week of February. The same can be said for high Beta names. This week high Beta names that were hurt were Toshiba (6502) down 9%, Concordia Financial Group (7186) down 7% and T&D Holdings (8795) down 5%. Low PBR names that did not do well this week were Nisshin Steel (5413) down 9%, Hiroshima Bank (8379) down 5% and Fukuoka Financial (8354) down 5%.

On the other side, there was a rotation into high ROE  and OP Growth names. High ROE names that did well this week were Temp Holdings (2181) up 4%, Sohgo Security Services (2331) up 4% and Nichirei Corp (2871) up also up 4%. High ROE and growth names have down well over the last month

Who Moved

Only 14 names moved on volume this week. On the positive side, Mitsubishi Heavy Industries is up 9%, ITO EN (2593) is up 4% and Yamaha Corp (7951) is up 3%. On the other side, Kyushu Electric Power (9508) is down 6%, Nitto Denko (6988) is down 4% and Maruichi Steel Tube (5463) is down 4%.

Summary

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