Sunday, September 18, 2005

A Japan followup

A short followup to my post on PalmSource takeover, where I suggested that Japan should be an essential part of any long-term portfolio.

Koizumi's emphatic win should definitely make this investment decision easier. Wining on a reform/privatization platform, this has shown that the Japanese are really ready for and demanding reforms. The sun should really rise in this land soon.

Apart from tech, another area where the Japanese are likely to start looking at targets, is pharmaceuticals. Takeda, for example, has already announced that it is planning to grow via acquisitions. I can think of a couple of targets - Kos Pharmaceuticals (KOSP) and Human Genome Sciences (HGSI). Kos is expensive, and I wouldn't buy at its current price. HGSI is definitely worth buying in large volume now, especically since there is some supporting insider activity.

The cosmetic/fashion/retail sector also may start showing life again. 7-Eleven (SE)'s Japanese owners recently offered to take the company private at a healthy premium, which may be hiked before the deal is considered closed. I had been watching 7-Eleven for a while, but never found a suitable entry point.


Post a Comment

<< Home