Kirin, a part-time investor, discussed the decision to sell Kioxia before its earnings announcement and disclosed views on the current market environment and stock splits. The article also highlights 3 stocks to watch.
Kirin, an individual investor with 11 years of investment experience, disclosed that a stock he had encountered 3 years earlier and initially viewed skeptically had recently begun to show growth, leading him to add it to his portfolio. He recalled that Kioxia's profit growth in the first half of this year was exceptionally strong, with the year-on-year comparison in its earnings summary shown as a dash because of the extent of the increase. At the same time, unrealized losses remain on shares bought at a high, and he said it would be necessary to assess whether future growth can be sustained over the long term. He also acknowledged that factors such as the impact of Chinese products could emerge from the perspective of volume multiplied by unit price. Given the need for caution, he believes a prudent approach is required when deciding whether to hold Kioxia through its earnings announcement.
Regarding whether to sell before earnings, he said he would use the portfolio's overall margin of safety as his sole criterion. If he felt there was insufficient leeway, he said selling before earnings and buying back afterward was an option. His view of the effect of a stock split has now become more positive, and he suggested that he might welcome measures such as a split to improve affordability even when a recovery in the share price is difficult. The value of one trading unit is said to be ¥5 million to ¥6 million, and he stressed that this is not a level at which investors can easily add to their positions.