Bond bother, but equity elation
Article Abstract:
There is increasing optimism by some economists about the prospects for the equity market in Japan. The rise in yields could reflect a recovering economy, according to Kirit Shah of Sanwa International, and this is supported by Michael Naldrett of Dresdner Kleinwort Benson, pointing to the close link between PE ratios and the current account surplus. However Peter Oppenheimer of HSBC has warned that the recent increase in the yen may depress exporters' earnings, and the PE ratio may rise, as earnings fall. Others feel that there is scant evidence of a recovery.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1999
User Contributions:
Comment about this article or add new information about this topic:
Chimerical pricing power
Article Abstract:
There is no simple relationship between pricing power and business performance. Companies that process raw materials and only add a little value have less pricing power, and face prices dictated by the market, as is the case of milk processors. Companies in such sectors can still perform well, as is shown by the case of Robert Wiseman Dairies. There may be limits to market power, as is shown by the computer and semiconductor industries. Price setters in niche industries, which enjoy a dominant position may be best placed in terms of protection from competition.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1999
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Uncertainty on US inflation presages a tough time picking winners. Life after death for US inflation
- Abstracts: Insider activity hints at excessive valuations at some regional banks. These southern banks show strong insider signals
- Abstracts: Toward a normative model of rational argumentation for critical accounting discussions. Literature and insights: 'Forensic' accounting in Spanish belles-lettres of the nineteenth century
- Abstracts: How to put a price on your reputation. Company reports: why earnings spell profits