What Worked Japan - 07 Oct 2016 - Value and Beta bounced up hard at the expense of Growth names

What Worked – Beta and Value bounced up hard this week and names with a high percent of Retail Investors and Growth names were hurt. Beta broke a 1-month losing streak and came in strong with a 45% IC. High Beta names that did well were SUMCO (3436) up 14%, Hitachi (6501) up 12% and Sompo Holdings (8630) up 12%. Value, particularly PBR did well this week. Low PBR names that bounced were Idemitsu Kosan (5019) up 10%, H2O Retailing (8242) up 9% and Japan Petroleum Exploration (1662) up 9%.

Growth names were hurt hard this week. In fact, high Sales growth names have not done this poorly in the last two years. Names that were down were Miura (6005) down 9%, AEON Mall (8905) down 8% and Sundrug (9989) down 5%. Looking at names with a high percent of Retail Investors, this group has only done worse once in the last 2 years. High Retail names that did poorly were ABC-Mart (2670) down 9%, DeNA (2432) down 5% and Kawasaki Heavy Industries (7012) down 5%.

Who Moved – While the market was up 2%, only 17 names moved on volume this week. On the positive side, Furukawa Electric (5801) is up 8%, J Front Retailing (3086) is up 6% and Ebara (6361) is up 6%. On the other side, ABC-Mart (2670) is down 9%, Kewpie Corp (2809) is down 6% and Nomura Real Estate Holdings (3231) is down 5%.

Summary

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