Climb On Boardthe New Bull In Japan

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The ADR Alert
Tuesday, November 22, 2005
By Alexander Green, Investment Director

#89

Climb On Board the New Bull In Japan

The Tokyo market hit another new 52-week high last week. And it’s not hard to understand why.

The Japanese economy is on the mend. The country is experiencing steady, non-inflationary growth and corporate earnings are early in a recovery.

The yen has declined 14% against the dollar over the last year. That boosts the profits of major exporters and makes Japanese stocks cheaper for American investors.

And Prime Minister Koizumi’s government received a landslide victory last September. As a result, political and economic reforms are likely to continue. That’s causing massive amounts of foreign capital to flow into Japan.

So take a good look at Orix Corp (NYSE: IX).

Orix is a Japanese financial services company doing real estate and corporate lending, insurance and investment banking in 22 countries, including the U.S.

Earnings – and the stock – are on fire. This month the firm announced that net income this year is up 97%. Management cited increases in all of these: leases, interest on loans, securities profits, brokerage commissions, life insurance premiums, investment income, and “other operating revenues,” as well.

Costs are well under control. Expenses for the year have actually fallen 9%.

As a result, these shares are up 66% year to date. And the outlook remains positive. With the Japanese economy firming up – and demand for both commercial and personal loans rising – Orix provides an excellent vehicle for riding the resurgent bull market in Japan.

***Action to Take***

Buy Orix (NYSE: IX) at $113 or better. And place a sell stop at $96 for protection. (There are no options on this one for speculators to consider.)

If you have any questions, feel free to call one of our VIP Trading Services representatives at 888.570.9830 (toll-free) or e-mail: viptrader@oxfordclub.com, or contact Pillar One Advisor Greg Galloway or Rick Pfiefer at 800.438.3040 or 407.667.4729.

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