What did the pros choose and what did they discard? A weekly look at active ETFs through PCF [Lumo Edition]

In a flower field, Yell was spreading out a notebook and thinking when a breeze blew softly.

Lumo: "Yes, yes! I've brought this week's numbers!"

Lumo lands softly. Around him, more scraps of paper with numbers written on them than usual are spinning around.

Yell: "Wow, you've got a lot today!"

Lumo: "Yeah! In the episode where I first appeared, Cosmos said, 'They are choosing', right?"

Lumo: "So this week, I've organized it into 4 categories so you can see what the pros 'chose and what they discarded'!"organized into 4 categories

Cosmos: "Oh, that's amazing. How did you divide them?"

Lumo: "Well, like this!"

Lumo: "But, while I understand the numbers, I still don't really understand what they mean."

Yell: "Huh! That sounds interesting, like peeking into the minds of the pros!"

Cosmos: "That's a good perspective. Then, let's look at those four in order."

1. Representative newly added stocks

Trading record: April 16, Taiyo Yuden (6976) 7,900 shares newly added.

Basic information on the stock

· Sector: Electric Appliances (Electronic Components)
· Topic: A major manufacturer of Multi-Layer Ceramic Capacitors (MLCC).

2. Representative stocks that were increased

Trading record

· RAKUS (3923): April 16, increased holdings from 400 shares to 7,200 shares (approx. 18x).
· KDDI (9433): April 16, increased holdings from 1,100 shares to 5,800 shares (approx. 5.3x).

Basic Stock Information

· RAKUS: Sector is Information & Communication. Develops cloud services for small and medium-sized enterprises.
· KDDI: Sector is Information & Communication. Major telecommunications company.

③ Representative Stocks with Significant Position Reductions

Trading Records

· Osaka Soda (4046): Gradually reduced from 17,300 shares to 6,600 shares on April 15, and to 5,100 shares on April 17.
· ITOCHU Corporation (8001): Reduced from 5,200 shares to 1,600 shares on April 15 (approx. one-third).

Basic Stock Information

· Osaka Soda: Sector is Chemicals. Handles functional chemicals such as rubber and resin additives.
· ITOCHU Corporation: Sector is Wholesale Trade. General trading company.

④ Representative Stocks Excluded from the Portfolio

Trading Records: None this week. (No stocks were confirmed as completely excluded based on PCF data)

Yell: "So there were no exclusions."

Cosmos: "That's right. But since Osaka Soda and ITOCHU were significantly reduced, you could say their priority has effectively dropped."

Yell: "...But I still don't really understand what the pros are thinking."

Cosmos: "I agree. So, for example, Taiyo Yuden. Why do you think it was suddenly added to the portfolio this week?"

Yell: "True. Did something happen with Taiyo Yuden recently?"

Cosmos: "Actually, there was a report on April 14 that they would raise prices for MLCCs starting in May."

Yell: "A price hike! Does that mean they're bullish?"

Cosmos: "Yes. Being able to raise prices is also proof that they have confidence in demand. Plus, it's said that demand for MLCCs will grow not just for smartphones, but for EVs as well. In fact, Taiyo Yuden's third-quarter operating profit increased by about 97% compared to the same period last year."

Yell: "That much! So their performance is growing properly, then."

Cosmos: "Exactly. Furthermore, Murata Manufacturing, in the same electronic components sector, has also revised its full-year sales upward due to demand for AI data centers. There is a tailwind blowing across the entire sector."

Yell: "I see... So, maybe the pros saw that trend and thought, 'Now is the time.'"

Cosmos: "That might be it. KDDI's stock price had fallen after a scandal was reported in February, but an investigation report was released at the end of March, and the amount of loss was determined. By turning 'unseen risks' into 'seen risks,' the pros may have judged that the uncertainty had cleared up."

Yell: "Isn't it usually scary to buy more shares of a company that had a scandal?"

Cosmos: "Usually, yes. But the core business's earning power hasn't changed, and dividends are being maintained. That's likely what the pros are looking at."

Yell: "But in the end, this just means we don't know yet if the pros' judgment is correct, right?"

Cosmos: "Exactly. There is no 'absolute' in investing. But by looking at 'what they chose and what they discarded' like this, we can see through to 'what kind of story the pros are painting.'"

Yell: "A story, huh... Then, shall we check together next week if that story is true?"

Cosmos: "Sounds good. Let's do two things next week. One is industry research on the 'technology sector,' which Taiyo Yuden and Raks belong to. The other is—'why Taiyo Yuden was chosen now.' Let's explore the reasons for that together from the financial statements."

Yell: "A double feature of mystery solving and industry research! Sounds fun!"

Lumo: "I'm getting excited! I can pick up the numbers, but I don't understand the 'meaning,' so I'd love for you to teach me. Well, I'll come back when the wind brings something else!"

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Thank you for reading until the end 🌸 Let's continue to learn step by step together.

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*This article explains basic investment knowledge. It does not recommend buying or selling specific stocks. Please make investment decisions at your own responsibility.