Market Is Too Short in Japan: Collett

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March 24 (Bloomberg) –- Sunrise Brokers Head of Japan and Asian Equities Ben Collett discusses Japan’s economy and the stocks he’s watching with Rishaad Salamat on Bloomberg Television’s “Asia Edge.” (Source: Bloomberg)


Let's get details on gaming.

The head of japan and the asian equities eying what happened in macau.

Singapore certainly did that.

The philippines as well.

Is japan now -- tell us about this.

There are so many benefits from this, not to mention the direct gaming companies themselves.

You see things like these are tango makers -- these pechinko makers.

They may lobby to stop this from happening as well.

That is the problem.

I think the macro play is going forward.

The big issue for us is the zoning.

The discussion of where they are going to put these places.

We are not talking about one sector.

It is the whole nation that needs this.

Is it going to be one city or throughout japan?

This is the thing that no one knows.

We think fukuoka is going to get one for sure.

Anywhere they can use an infusion of capital infrastructure.

We think the basis for a lot of our analysis is looking at stocks that they sneer these.

-- base near these.

Anything in these communities, we're are not talking about just one sector.

You could be wrong-footed on this one.

You could pick a wrong area.

It is a lot read.

Well, for the time being.

You could be wrong in anything you do.

We think this is a high probability.

A cyclical play.

This company does two things.

It does cement and it is also based in fukuoka.

The reason we think polysilicon will go into demand, it is solar panels.

The model has been fabricated by government using subsidies for solar panels.

They have had a run-up and the market will lose its fever.

One of the things we have seen by the german company that did a polysilicon-based solar panel that you can stick on anything.

Buildings, cars.

We think this is going to be -- that we are on the cusp and a change in the structure of demand from government subsidy to consumer products.

These guys are probably the most advanced producer in japan.

40% is cement and building consumables.

Property, that would be another read through.

We know there have been some big institutional sellers.

I do not want to speculate who they are.

These sorts of patents, you see a lot of these guys hold it for a month or two.

It is a very important part.

We have already seen the yen strengthened.

We think the yen is going to weaken.

All of the things add up to covering shorts and property.

The property sector is something we are looking at.

We do not want to buy for specific reasons.

You have got to ask what the market is like in certain parts of japan.

There is no way to make any money in these robberies they have bought.

-- in these properties they have bought.

There is a lot of support for markets.

It is not necessarily going down -- no one is taking any gains.

I suppose a lot of the people believe that the yen could go weaker.

We have looked at places or regions in japan.

As a foreigner buying a yen-based asset, i think you are taking a huge risk.

Well, let's take a look.

They are looking at the same things as they gear up for -- and taiwan is also looking at this too.

They want to cash in from the chinese boom and the love of gambling.

That is way beyond my ex these.

-- my expertise.

The interesting thing was that when the story broke, i think korea too was looking at expanding.

Everyone wants to get in on this game.

They really responded in terms of selling.

We have had comments coming out that they have been salivating about building in japan.

It may be a japanese solution to all of this and you do not get these huge buildings like the venetian, not just in vegas but on the coach i strip.

-- on the other strip.

With the americans coming in with their casinos, we certainly hope that is the case because they have the tendency to overcompensate.

-- overcomplicate.

This text has been automatically generated. It may not be 100% accurate.


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