Japan Stock Writeups

Yahoo Japan has bounced nicely post Microsoft's bid for its parent. Although there were some synergies between Yahoo Japan and Microsoft's Japanese business, the deal would not have provided a major earnings kicker to Yahoo Japan's profitability over the next few years. Without projecting a massive improvement in the advertising sector, it is tough to square the circle on the current  punchy valuations. Hence we have exited the position.   

In Japan, Yahoo provides the functions of not only Yahoo 'Global' but also Google and Ebay - it runs the largest and most used search engine, as well as the most popular auction website. 20 million people have an email account with them and they dominate internet advertising with a 50% market share. As consumption picks up in Japan, advertising spending is set to rebound, especially online. Yahoo Japan is ideally placed to benefit.

Sedol	Type	Price	Date
6084848	Sell	JPY 43,966.73	08/05/2008
6084848	Buy	JPY 42,929.188	25/06/2007

Yokohama Rubber has a strong position in the Japanese domestic tyre market, the world's second largest. Management have been focussed on maintaining profitability, and due to cuts in selling, general and administrative costs, operating margins have held up despite large rises in input costs. As these input costs come down, the company is set to achieve higher margins coupled with robust growth.

Sedol	Type	Price	Date
6986461	Buy	JPY 805.018	14/05/2007