It's earnings time. Here's the trend with the other IT firms that have announced; a clear majority of them sold off steeply after posting numbers. Why? Because the run-up in the past 2 months has been staggering. Let's assume IIJ's results are spectacular. If that's the scenario then it's my opinion the price will remain flat when the news hits the trading floor. The current price is too high for me and I currently have zero shares.
Let's see how it plays out.
Today was an irrational day. I stated only a day ago that it was time to wait but when IIJ went limit down I was dumfounded and quickly reversed my strategy. I bought above the low point(3140 to be exact) but am glad to have re-established a position. Many other firms(mostly small and mid-cap) that are interesting in Japan also got battered in the morning so it wasn't an easy call as to what to buy.
The gyrations in the Japanese market can be dizzying but if you keep your cool there are many opportunities.
The numbers which hit the street several hours ago were great but not spectacular. Hence, the share price slumped 7% this afternoon in Tokyo. It's very rare for me to hold 0 shares but I felt the uptick has been too dramatic. The fact that the dividend has been lifted and that the CEO has made some very optimistic comments in the ER report about IIJ"s prospects in foreign markets should limit the pain.
Nevertheless, I will wait for a more attractive re-entry point. Don't ignore the remarks made today by Sakakibara who called the Nikkei "bubbly." He still wields great influence when he speaks.