catoismymotor (78.40)

catoismymotor's CAPS Blog

Two Ways To Play Japan's Recovery

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March 14, 2011 – Comments (4) | RELATED TICKERS: NSANY.PK , TM , SNE

Play No.1:

There is an opportunity here to do some good by investing in companies that will clean up, rebuild parts of Japan. I don't have any particular companies in mind as I write this. However there should be some promising infrastucture, power production, and home building companies, amongst others, that could seriously benefit from the coming uptick in business. It will take years to complete all the work. For those of you with a long term approach with an eye for growth opportunities in a foreign market this may be a good way to go.

Play No. 2:

The market in Tokyo has taken a hit with some heavy weights, such as Nissan, being down 10% since Friday. I will not be surprised to see more shares being sold, thus driving down the price of some very good Japanese large caps due to no fault of their own. Due to the power supply issues, major structural damage to thousands of office buildings and factories, supply chain interruptions and the temporarily shaken national psyche I see an environment ripe for those of you with a long term focus and favor the value investing approach.

4 Comments – Post Your Own

#1) On March 14, 2011 at 10:57 AM, Jbay76 (< 20) wrote:

I'm thinking of companies like Cemex, Catepillar, copper and steel, energy..all these companies/sectors will be needed to rebuild this country. Getting in on the companies now while their prices are depressed could prove a good entry piont, or so my theses goes.

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#2) On March 14, 2011 at 11:34 AM, lemoneater (84.49) wrote:

I cannot think Japan without thinking camera equipment. I have some shares in Canon (CAJ).

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#3) On March 14, 2011 at 11:44 AM, PeteysTired (< 20) wrote:

How does all of Japan's debt play into the overall ability to pay anything back?

Or does Japan's central bank handle all the debt issues like the Fed, so there is nothing to worry about :)

Or in natural disasters there is no concept of money?

Just curious.

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#4) On March 15, 2011 at 8:45 AM, catoismymotor (78.40) wrote:

TOKYO ELECTR POWER (TPO.F)

This may (I really don't know) prove worthy if some digging. They own the reactors that are currently causing the mass freak-out. A possible value play?

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