Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

The Market Doubts Itochu Will Continue To Outpace Its Rivals

Sell-side analysts can be a stubborn lot. Even when a less-favored company outperforms, it's not uncommon to see follow-up reports declaring that its outperformance can't continue. When looking at the large Japanese trading companies, Itochu's (OTCPK:ITOCY) outperformance certainly stands out - the shares are up more than 50% in Japan while rivals Mitsui (OTCPK:MITSY), Marubeni (OTCPK:MARUY), Sumitomo (OTCPK:SSUMY), and Mitsubishi (MSHBY) are up around 20% to 30%.

Itochu's strong performance doesn't strike me as a fluke. Management has consciously and deliberately sought to create a balanced collection of assets, with operations in food and machinery offsetting the volatility to the commodities operations. With management looking to build its non-resource operations at...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details