Japan stock market seems cheap ?

capitalstars1 · Mar 18, 2011

Tokyo’s two-day stock market crash at the start of the week helped to create value out of stocks

shadowninja · Mar 18, 2011

The problem is that the price of stocks has fallen for a reason. Let's take Nissan as an example. They've actually lost suppliers of components who were based in the likes of Sendai so cannot manufacture their products. So they will have to find another source which may result in a reduced profit margin due to components being more expensive elsewhere... assuming these components were not only produced in Sendai due to exact specifications. If they have a replacement, the supplier can charge more knowing that one or more of their rivals have been wiped out. It's things like this that need to be considered before investing.

tar · Mar 18, 2011

capitalstars1 said:
Tokyo’s two-day stock market crash at the start of the week helped to create value out of stocks

http://www.imdb.com/title/tt0131566/

counter_violent · Mar 18, 2011

shadowninja said:
The problem is that the price of stocks has fallen for a reason. Let's take Nissan as an example. They've actually lost suppliers of components who were based in the likes of Sendai so cannot manufacture their products. So they will have to find another source which may result in a reduced profit margin due to components being more expensive elsewhere... assuming these components were not only produced in Sendai due to exact specifications. If they have a replacement, the supplier can charge more knowing that one or more of their rivals have been wiped out. It's things like this that need to be considered before investing.

Yes and could easily be worse. I'ts entirely possible that there is no alternative suppliers of certain parts, in which case cars don't get built and sales revenues dry up.

Japan stock market seems cheap ?

capitalstars1

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tar

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counter_violent

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