On December 14th 2020, we recommended investors to BUY Japan’s Mitsubishi Motors 7211 JP at JPY 200 in a post titled ADDING TWO JAPANESE RECOVERY PLAYS and bought it in our Model Portfolio.
Today, the stock traded above JPY 300, after it was made public that Apple Inc has been in talks with most Japanese auto manufacturers to build its Electric self-driving vehicles in the US and took a stake in Korea’s KIA MOTORS.
Although, we remain very positive on the long-term recovery potential of Mitsubishi Motors, we tactically decided to take our
50 % profits on the position initiated in December.
The stock is overbought in the short term and, although the long term chart indicates much more upside and analysts are starting to upgrade their views on the company, the potential for a correction back to 250 has increased significantly.
Mitsubishi Motors remains one of our favorite recovery plays in Japan and in the global auto sector, but disciplined investing is key to delivering regular performances.
DISCLAIMER Mechelany Advisors FZ-LLC or www.mechelanyadvisors.com, is not a registered investment advisor, nor a capital management firm or broker-dealer and does not purport to tell or suggest which securities customers should buy or sell for themselves. Mechelany Advisors FZ-LLC operates as a private advisory and research company where we provide consulting services to pension funds, investments funds and private clients. Our analyses and conclusions are ours and they only clarify and highlight the investment rationale behind our own investment decisions. The analysts and employees or affiliates of Company may - and usually do - hold positions in the stocks or industries discussed here. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. You understand and acknowledge that there is a very high degree of risk involved in trading securities. It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns. The indicators, strategies, columns, articles and all other features of Company’s products are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company’s website are for educational purposes only. Such examples are not solicitations of any order to buy or sell securities, commodities, investment products or engage into any kind of trading activities. Accordingly, you should not rely solely on the Information provided in making any investment decision. Rather, you should use the Information provided only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment. By navigating on our website or remaining on our subscription lists, you accept our terms and conditions and discharge us irrevocably form all responsibility.
