JAPAN ASIA INVESTMENTS

1001 BOUL. DE MAISONNEUVE O., BUREAU 950, MONTREAL, CANADA   H3A 3C8

TEL: (514) 939-2221     FAX: (309) 417-0942

e-mail: sidklein@sidklein.com

www.sidklein.com

 

  THE RUN

 

Feb. 24, 2004

 

Nikkei:      10,644.13

*April low:   7,603.76

 

*- See March 31 & May 3, 2003 reports, along with April 10, 2003 ROBtv interview on homepage.

 

.JAPAN:

 

Thirteen days ago, in support of previous market letters, SKC reiterated:

 

“In the fourth quarter, SKC warned of seasonal weakness for calendar year-end. Such weakness relates to the activities of foreigners during that time. That weakness transpired and while followers of the Nikkei may not know it (SKC readers have not tracked the Nikkei (principally) for four years), Domestic Demand Oriented Value Stocks (DDOVS), as defined here since 2000, subsequently took off since the fourth quarter lows, with impressive double-digit gains. To make these performances even more noteworthy, the Nikkei has been every bit as unimpressive over the same time period.”

 

What follows are links to equities that are just a few examples of the many stocks that have taken off since the forecasted and identified fourth quarter lows for Japanese shares. Note that, once again, the Nikkei had little to do with reality, as has been the case since 2000, when SKC identified the lows for DDOVS, while still forecasting calamity for the indices.

 

As readers are aware, the model portfolio returned 79.8% from Oct. 7, 2002Oct. 6, 2003. Thereafter, SKC indicated that there would not be any further published stock examples. Several stocks have been breaking out and preparing to accelerate into Japanese yearend next month. The first example below is from last year’s model portfolio, while the following two are also held by investors.

 

(1)

 

 

 

There is no representation being made here as to which stocks are favourites among all those mentioned, nor is there any comment as to the ultimate targets, neither regarding the intermediate nor longer terms, though, sufficed to say, those close to my past comments are aware of which equities are in the earlier stages of their breakouts in the big picture, regardless of recent stellar performances. In all, investors are considering over twenty names, though buying opportunities in the short term in many stocks are falling by the wayside, due to price run-ups.

 

NB: SKC cautioned that ideal intermediate term buy points in November – December would manifest, spelling exceptional opportunities, particularly as intermediate term highs in many situations could be seen in March, thus offering significant per cent gains in short order.

 

Please note as well that no explanation is given as to why different equities would mix together in the same portfolio and in what manner, either as regards industry or sector balance, nor as regards the management of portfolio volatility. As well, these one-year snapshots offer no bigger picture in which every stock story is in fact told. Of course, once accessing the charts below, you may easily alter the time period of the respective charts by using the dropdown arrow.

 

http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=jp%3A4225&sid=0&o_symb=jp%3A4225&freq=1&time=8

 

http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=jp%3A2730&sid=0&o_symb=jp%3A2730&x=53&y=23


 http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=jp%3A6274&sid=0&o_symb=jp%3A6274&x=50&y=17

 

 

NEW YORK:

 

This market is playing out PERFECTLY (see previous market commentary), as are the prices of those instruments that we seek to acquire, in aiming at what could be the most extraordinary gains yet of the past twenty-five years, certainly on a risk adjusted basis.

 

GOLD, DOLLAR, OIL:

 

Gold and the currencies are unfolding their respective destinies as forecast in

 

(2)

 

 

 

these pages, though oil went a bit higher than initially thought.

 

The cold weather will have provided the multi-nationals (colloquialism) with the sought after capital.   Destroy it…re-build it.   Now there’s a first.

 

 

The next regularly scheduled commentary for clients and subscribers is set for the first weekend of April.

 

 

 

 

 

 

 

 

 

 

 

 

Sid Klein

________________________________________________________________

This newsletter is solely the work of the author for the private information of intended recipients only. Although the author is a registered investment advisor at Desjardins Securities Inc., this is not an official publication of Desjardins Securities Inc. The views (including any recommendations) expressed in this newsletter are those of the author alone and are not those of Desjardins Securities Inc. The information contained in this newsletter is drawn from sources believed to be reliable but the accuracy and completeness of the information is not guaranteed, nor in providing it do the author or Desjardins Securities Inc. assume any liability. No solicitation to buy or sell securities should be inferred from either the contents of this newsletter, nor its dissemination. Each potential investment decision and its appropriateness must be considered within the context of the entirety of the individual investor's circumstances. This information is given as of the date appearing on this newsletter and neither the author nor Desjardins Securities Inc. assume any obligation to update the information or advise on further developments relating to the information provided herein.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3)