Hennessy Japan Small Cap Funds Buys 5 New Stocks
The Hennessy Japan Small Cap Fund (Trades, Portfolio) (HJPSX) disclosed the purchase of five new stocks in the quarter ended Oct. 31, 2014. Managers of the fund seek companies that have strong business and management, attractive price and that have a market cap in the bottom 15% of Japanese companies.
In its most recent commentary, managers commented on the impact Japan Prime Minister Shinzo Abe's economic reforms would have on business and markets:
"In June, Prime Minister Abe unveiled details of the third of the 'Three Arrows,' which includes longer-term structural reforms. The government aims to revitalize corporate earnings, reduce the number of idle workers and make it easier for companies to conduct business. Among several details that emerged, the plan intends to promote private investment by reducing the corporate tax rate to below 30% over the next few years and by easing regulations for businesses.
These changes will likely create a more business-friendly environment. The market should also welcome these reforms, however, patience will be required, as they are multi-year initiatives. It may be difficult to evaluate the effectiveness of the third arrow over the short term, yet the government's commitment to economic growth appears strong."
The fund's five new stocks were: Utoc Corporation (TSE:9358), Marubun Corp (TSE:7537), Capcom Co. Ltd. (TSE:9697), Aichi Tokei Denki Co. Ltd. (TSE:7723) and New Japan Radio Co. Ltd. (TSE:6911).
Utoc Corporation (TSE:9358)
The fund purchased 47,900 shares of Utoc Corporation, a 1.1% portfolio space. The stock's trading price averaged 561 yen per share in the quarter.
Utoc Corp operates primarily in the intermodal transportation business in Japan. Utoc Corporation has a market cap of $24.26 billion; its shares were traded at around $561.00 with a P/E ratio of 8.80 and P/S ratio of 0.51. The dividend yield of Utoc Corporation stocks is 0.99%. Utoc Corporation had an annual average earnings growth of 13.20% over the past five years.
Marubun Corp (TSE:7537)
The fund purchased 35,200 shares of Marubun Corp, a 1.2% portfolio weight. The stock's price averaged 750 yen in the quarter.
Marubun Corp is engaged in the purchase and sale of semiconductors, general electronic components, electronic appliances and electronic products. Marubun Corp has a market cap of $21.51 billion; its shares were traded at around $823.00 with a P/E ratio of 12.70 and P/S ratio of 0.08. The dividend yield of Marubun Corp stocks is 1.94%. Marubun Corp had an annual average earnings growth of 14.50% over the past five years.
Capcom Co. Ltd. (TSE:9697)
The fund purchased 31,500 shares of Capcom Co. Ltd., a 1.7% portfolio weight. The stock's price averaged 1,722 yen in the quarter.
Capcom Co. Ltd. is a manufacturer and distributor of electronic game machines. Capcom Co. Ltd. has a market cap of $102.12 billion; its shares were traded at around $1816.00 with a P/E ratio of 69.60 and P/S ratio of 1.36. The dividend yield of Capcom Co. Ltd. stocks is 1.75%. Capcom Co. Ltd. had an annual average earnings growth of 10.10% over the past five years.
Aichi Tokei Denki Co. Ltd. (TSE:7723)
The fund purchased 116,000 shares of Aichi Tokei Denki in the quarter, a 1.7% portfolio weight. The stock's price averaged 312 yen in the quarter.
Aichi Tokei Denki Co. Ltd. is engaged in the manufacturing, repairing, and selling of measuring equipment such as water and gas meters, gas leakage alarms, magnetic sensors, and flow meters. Aichi Tokei Denki Co. Ltd. has a market cap of $16.59 billion; its shares were traded at around $323.00 with a P/E ratio of 12.00 and P/S ratio of 0.40. The dividend yield of Aichi Tokei Denki Co. Ltd. stocks is 2.35%. Aichi Tokei Denki Co. Ltd. had an annual average earnings growth of 11.10% over the past five years.
New Japan Radio Co. Ltd. (TSE:6911)
Hennessy purchased 91,000 shares of New Japan Radio Co. Ltd., a 2.1% portfolio weight. The stock's price averaged 482 yen in the quarter.
New Japan Radio Co. Ltd is a microwave and micro-electronics company manufacturing semi-conductors; microwave application products for use in satellite broadcasting, satellite communications and terrestrial communications. New Japan Radio Co. Ltd. has a market cap of $18.74 billion; its shares were traded at around $479.00 with a P/E ratio of 5.10 and P/S ratio of 0.43.
For more Hennessy Japan Small Cap Fund (Trades, Portfolio) stocks, visit the portfolio here. Not a Premium Member of GuruFocus? Try it free for 7 days here.
This article first appeared on GuruFocus.
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