METRICAL:CG Stock Performance (Japan): May 2021

May stock market continued directionless trading after an upturn at the beginning of the month. CG Top 20 stocks outperformed against both the Topix and JPX400 indices.

Stock prices opened higher at the beginning of the month on the back of lower US interest rates led by lower-than-expected US employment data, but subsequently kept directionless trading. Topix and JPX400 indices gained 1.42% and 1.78%, respectively, during the month of May. The CG Top 20 stocks outperformed for the second consecutive month with a 2.17% gain.

Metrical: CG Stock Performance: April 2021

Stock markets ended the month of April in a downtrend, mainly due to concerns about the spread of a COVID-19 infection. The performance of the CG Top 20 stocks over the month outperformed the Topix and JPX400, limiting the decline. In April, the stock market closed lower as traders took stock of their positions before […]

Golden Week 2021: Holiday Closing Notice

We will be closed from May 1st to May 9th due to the consecutive national holidays as the Golden Week Holidays.

Business will resume on Monday, May 10, 2021.

We apologize for the inconvenience and thank you for your kind understanding.
Please feel free to leave us a message at the e-mail address below, and we will get back to you shortly.

4/7 “Director Boot Camp” Held by Zoom! Next Course: 2021.07.13!

On April 7th, still in the midst of the pandemic, BDTI held its English Director Boot Camp via teleconference. The day-long intensive course was attended by 10 highly-experienced and highly interactive 4/7participants. The participants heard lectures about corporate governance by Nicholas Benes along with a guest lecture by Andrew Silberman of AMT, and exchanged experiences and opinions. Even during a pandemic, training continued smoothly, with all participants chiming in with insightful comments and questions.

Why Does a Farmer Fertilize, and Rotate his Crops? ~ Why is Director Training is So Essential for ESG, – But Especially in Japan?

Farmers fertilize their plots of land and sequentially rotate the crops they plant on them. They do this to improve soil health, optimize nutrients in the soil, and combat pest and weed pressures. Investors should take a cue, to improve the quality of the “land” from which they grow profits, – in other words, the […]

METRICAL:CG Stock Performance: February 2021

February stocks edged lower with a sharp decline. CG Top 20 stocks underperformed Topix and JPX400 during the month.

In February, the stock market immediately made up for the plunge at the end of the previous month, with the Nikkei 225 index getting off to a strong start, reaching the 30,000-yen level for the first time in 30 years. However, the stocks edged lower with a sharp decline on the last day of the month, due to a plunge in U.S. stocks, especially technology stocks, on concerns about rising U.S. Treasury yields.
CG Top 20 CG rose 1.61% during the month, while Topix and JPX400 indices gained 3.17% and 2.91%, respectively. Cumulative performance of CG Top 20 Stocks continued to outperform significantly as shown in the chart below.

2/9 “Director Boot Camp” Held by Zoom! Next Course: 2021.04.07!

On February 9th, still in the midst of the pandemic, BDTI held its English Director Boot Camp via teleconference. The day-long intensive course was attended by 10 highly-experienced and highly interactive participants. The participants heard lectures about corporate governance by Nicholas Benes along with a guest lecture by Andrew Silberman of AMT, and exchanged experiences and opinions. Even during a pandemic, training continued smoothly, with all participants chiming in with insightful comments and questions.

We are planning to hold the next course via teleconference on Wednesday, April 7th, 2021. Sign up early! Please see a description of our director training course here or click the button below for further information.

METRICAL:Post-COVID-19 Focuses on Family Companies

The environment surrounding our business is changing significantly in line with changes in social life due to the spread of the new corona virus infection. The biggest challenge for management is to adapt to these changes in the environment with a post-corona scenario in mind. We believe that one of the keys to adapting to these changes in a timely and flexible manner is management leadership. We expect to see a lot of interest in the relatively fast-moving family-owned companies. In the past, METRICAL research has shown that companies owned by founder’s families with 20% or more of their companies performing significantly better than average. We would like to focus again on the latest data. The following two charts show the distribution of ROE (actual for past 3-5 years) and Tobin’s Q between family-owned companies (those with 20% or more ownership) and the universe of 1,743 firms, with both ROE and Tobin’s Q being higher for family companies than for the universe of 1,743 companies’ distribution. It remains to be seen whether the family companies will be able to adapt to these changes at a rapid pace and achieve higher profitability, which will be reflected in their stock performance.

METRICAL:CG Stock Performance: November 2020

November stocks surged on global upswing.
CG Top 20 stocks under performed slightly against TOPIX and JPX400.

Stock prices rose Jumped in November on expectations of an economic recovery after Pfizer filed for a new coronavirus vaccine and further liquidity expansion following the U.S. FOMC meeting.

TOPIX and JPX400 indices gained 10.67% and 11.72%, respectively, during the month, while the CG Rating Top 20 ended the month with a 9.16% gain, which was not as large as the two indices.

METRICAL:CG Top 20 Stocks Fell With Underperformance Against TOPIX and JPX400

After an upward trend through the previous months, stock prices fell toward the end of the month in October on concerns about the rising number of coronavirus cases in Europe and North America. The CG Rating Score Top 20 stock indexes significantly underperformed the two indices. CG Top 20 stock prices fell 5.41% in October, while TOPIX and JPX400 closed down 2.81% and 2.75% respectively. However, the cumulative return of CG Top 20 stock prices kept significant outperformance against the both indices (see chart below).