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TIAA-CREF Active Equity Research Director Melissa Otto on the outlook for the yen and Japanese stocks.
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Your anniversary can't believe -- time really goes by so quickly it's it's a one year anniversary of the killer earthquake and tsunami coming up.
The devastated Japan it is approaching so is it time for investors.
To taken a look at some of the biggest Japanese technology companies in fact some of that of stumbled over the past couple of years.
Our next guest is going to tell you how and when to get -- and joining us now in a Fox Business exclusive as Melissa Otto.
She's actually active equity research director at T I'd say -- -- Shortly after the earthquake in Japan on the tsunami we must -- fifty segments on should you buy.
Japanese technology stocks and Japanese stocks in in general.
Because they had -- beaten down due to the tragedy.
But you say now is the time that you should be looking for certain signals on some of these names.
Absolutely I I mean.
-- stocks have fallen 5060%.
So one could argue that a lot of the bad news that we saw from last year.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Has made us take a look and say wow you know these are starting to look pretty interesting at these level looking at the Nikkei 225 that of course is their big stock index of it over the past year it has really taken a hit but.
Previous to that.
The five year picture so unbelievably ugly what makes you think that we'll start to see some moves to the upside or at least opportunities in individual names.
The big thing I'm looking at right now is the currency.
Because this is been an enormous headwind for many of these exporter company is.
They're exporting an enormous amount to.
The UST your up into emerging markets and with the yen -- strong as it is it's really just been at -- terrible headway into their earnings.
You know Japan's largest maker of LCD panels in the chart a forecast the worst annual loss since it was founded saying that exporting.
Has become nearly impossible we just heard this from Carlos -- of Nissan Renault as well.
Saying it's become nearly impossible because their currency is so strong.
At what point does the yen -- do it by the way soar rising when you start to see the -- go from -- 78 to 85 or what have you.
That's it's obviously getting a little bit stronger there so.
-- -- drive is what I'm really looking for that's where we get to some pretty interesting levels.
Why.
Because they're they're not going to anniversary the same strain that they saw the previous years so that means they're gonna actually start to book some gains.
And depending on and it's very new -- based on whether or not -- company actually hedges are not but.
If if we say that.
They'd booked 78 into the dollar for this year and then.
Ultimately it turns out to be 85 that seven cents.
Trans -- -- and I playing this up folks 85 when the yen hits 85 that is the level.
I have that she says to get it now where they'd probably aren't just put Nintendo on the other coming out with -- -- you for example and I don't always is Nintendo an opportunity I mean when you look at some of these names.
-- -- -- to own it and another other competitors.
Absolutely mean apple is an unbelievable competitor is they have dominated and they've also benefited from the weak US dollar tremendously as they export.
Aggressively to China and to Europe.
And also to get the Japanese market they've taken enormous share there but like I said some of these stocks are starting to look like.
They're approaching a bottom while -- -- -- here's an interesting chart one year there's been -- -- not looking great and by the way we do have some flashes on Greece coming out on the bottom about.
Plants to cut the minimum wage so we're starting to get the draft information right now out of Greece so maybe some movement there on that.
Back to Melissa is there -- sort of an alternative to a Nintendo out -- -- name that you're looking out.
An alternative to Nintendo I mean.
One could argue Sony is looking kind of interesting right now that's a stock that's also taking huge -- they also put up huge losses revise down.
But there's a great argument out there saying that if the yen -- the US stabilizes.
We get a little bit of good news out of Greece.
Perhaps it's time to start looking at this name again -- there's a company called -- have you heard about data to stay out talk about that and how we we it was like to let our viewers know -- new names out there.
-- really interesting and it says social network keying.
-- -- made indigenous to Japan to have an overseas strategy as well.
And they've just been putting up fantastic numbers just be -- Marines found they just put up a fantastic quarter.
The fundamentals in that business clearly accelerating.
Yeah but what Melissa saying is you're not gonna -- You're not gonna buy high here I mean Sony for example down 43%.
Over the past year Panasonic jumped 37%.
But they're both paying.
Small but decent dividends -- to see you thank you so much much Melissa Otto of TIAA-CREF.
464 billion in assets have it there thank you could see.
