Monday October 17, 2011
by Yiannis Mostrous, editor Global Investment StrategistJapan remains the most attractively valued developed market. Here's a look at our two favorite Japanese stocks -- a retailer and a real estate play.
Analysts were quick to downgrade Japan and Japanese companies after the earthquake in March. But now analysts are rapidly upgrading their outlook for corporate earnings.
The country’s supply chain has recovered faster than expected from the earthquake and earnings will soon reflect this improving situation.
The government is also in the process of drafting a supplementary budget of about USD155 billion that will be used in reconstruction.
Our two favorite stocks to own in Japan are the clothing retailer
Fast Retailing (
FRCOY), and the premier real estate company
Mitsubishi Estate (
MITEY).
Fast Retailing remains on the forefront of a global trend toward “thrifty fashion.” The company has built its reputation on sales in its home market of Japan, which still accounts for the vast majority of revenue.
However, overseas sales are growing rapidly as the company pushes into both developed and emerging markets.
Mitsubishi Estate is one of the country’s most prestigious real estate companies, with land in some of the most coveted office areas in Tokyo. The company also has a very active residential business and runs six hotels in Japan.
Learn more about this financial newsletter at Yiannis Mostrous' Global Investment Strategist.
