Search for 100 bagger (100x stock)! August 2, 2021 issue
【This week's video is here】
※ Approximately21 minutes long.
August 16 (Mon) is a company summer holiday, so we will be taking a break.
Next issue will be on August 10 (Tue), and the following issue will be on August 23 (Mon).
1. Sakura Data Memo
Outlook for three decarbonization-related stocks watched by market participants
Since April, the Japanese stock market has had a heavy upper limit on indices, and unlike last year, the market did not rise sharply overall, so individual stocks have continued to be scouted.
In this year's market, the first to be scouted was semiconductor-related stocks, which had been active since last autumn, with Tokyo Electron [8035] and Advantest [6857] forming the center of interest until about April. After April, the focus on semiconductors shifted from Nikkei 225 constituents to other stocks, with Laser Tech [6920] being the leader. Laser Tech, with a market capitalization around 2 trillion yen, sometimes tops daily trading value rankings, indicating high popularity in the stock market. After hitting an all-time high of 23,930 yen in June, it fell, then traded in a high range, and is not actively pushing for higher prices.
In my independent opinion, the most notable target for the end of July to mid-August earnings season is “Laser Tech.” If the stock price declines because of earnings already priced in, the rally in semiconductor-related stocks should be considered over for the time being.
Now, this Sakura Data Memo is about decarbonization-related topics, but before that, you might wonder why I started by talking about semiconductor-related stocks...
Because I wanted to convey that market theme stocks are changing and to discuss the sustainability of the themes.
From last autumn to June this year, semiconductor-related stocks rose mainly for the following three reasons.
① Demand continued to rise even during the COVID-19 pandemic, with growth likely to continue for about the next two years.
② Traditionally, silicon cycles caused booms and busts every about four years, but with expanding use in 5G, data centers, and autonomous driving, the cycle may be extending longer than before.
③ Semiconductors are positioned as a national strategy not only in Japan but worldwide, and government support is expected in the future.
In a situation where long-term earnings fundamentals can be expected to improve, the anticipation of demand driven by national policy has also helped lead the rise of semiconductor stocks.
The decarbonization-related theme this time is likely to be a longer-term theme than semiconductors, possibly lasting at least five years, and given future development and goals, I expect it to remain a topic in the market around 2030 or so.
Around the United States and Europe, the sense of crisis regarding global warming and climate change is increasing year by year, and in Japan this field is now a must-win situation without delay.
This time, we will tell you the current positioning and status of three decarbonization-related stocks.
① Revivo (Renova) [9519]
② E-REX (E-Rex) [9517]
③ FON (F-ON) [9514]
Without further ado, I will state my conclusion regarding the three companies' positions based on their current stock prices.
For more, please see the PDF file.
