sony

ISHARES MSCI JAPAN INDEX FUND $12.25 (American Exchange symbol EWJ; buy or sell through a broker) is an exchange-traded mutual fund that tries to match the return of the MSCI Japan Index (Morgan Stanley Capital International Japan Index). The MSCI Japan Index is a benchmark for Japanese equity performance. The iShares Japan Index Fund charges a fee of 0.59% of assets. The fund’s top holdings are: Toyota Motor at 5.0%; Mitsubishi UFJ Financial Group, 3.2%; Canon Inc., 2.1%; Nintendo Co., 2.0%; Sumitomo Mitsui Financial, 2.0%; Honda Motor, 1.9%; Mizuho Financial Group, 1.8%; Sony Corporation, 1.8%; Takeda Pharmaceutical, 1.7%; Matsushita Electric Industrial, 1.7%; and Mitsubishi Corp., 1.7%. Japanese stock markets remain volatile along with global markets. However, overall, we think that Japan’s economy will keep growing and push stock prices up....

SONY CORP. ADRs $48 (New York symbol SNE; Conservative Growth Portfolio, Manufacturing & Industry sector; ADRs outstanding: 1.0 billion; Market cap: $48.0 billion; WSSF Rating: Above average) is starting to enjoy the benefits of its recent restructuring plan. It earned $3.51 per ADR in its fiscal year ended March 31, 2008, up sharply from $0.99 in fiscal 2007. (Each American Depository Receipt represents one common share.) Sales grew 26.2%, to $88.7 billion from $70.3 billion, thanks to growing demand for its flat-screen TV sets and PlayStation 3 video game console. Sony has ended its partnership with Samsung, which supplied it with flat-screen panels. Instead, it will buy 34% of a new flat-screen plant that Sharp is building. Production should begin in 2010. Sony now plans to increase its annual dividend rate by 60%, from about $0.25 per ADR to $0.40. That implies an annual yield of 0.8%. It also plans to pay a special dividend of $0.10 per ADR....

ANHEUSER-BUSCH COMPANIES INC. $57.46, New York symbol BUD, rose 10% this week on speculation that Belgian-based InBev NV may launch a $65-a-share takeover offer. InBev is the world’s largest brewer, but has only a small presence in the United States. Buying Anheuser-Busch would instantly give InBev over half of the U.S. beer market. Anheuser-Busch has no controlling stockholder, so a hostile takeover could succeed. Even if InBev decides not to bid, we still like Anheuser-Busch’s long-term prospects. The stock is still a buy....

JAPAN EQUITY FUND $7.39 (New York symbol JEQ; CWA Rating: Aggressive) invests mostly in large capitalization stocks on the Tokyo Stock Exchange. Lately, the fund has added to its holdings of firms selling to emerging markets, to offset exposure to the slowing U.S. economy. It has also upped its holdings of Japanese financial stocks. These have limited exposure to subprime-related securities. The Japan Equity Fund’s top holdings include: Toyota Motor, Mitsubishi UFJ Financial Group, Mizuho Financial, Sony Corp., Denso Corporation, Mitsubishi Corp., Canon, East Japan Railway, Komatsu Ltd. and Takeda Pharmaceutical Co. Japan Equity Fund is available for 9% less than the current value of its assets. Our long-standing advice is that you only buy closed-end funds trading at close to or below net asset value. It’s a buy.

Japanese stock markets remain volatile along with global markets. As well, a slowing U.S. economy plus a continued rise in the yen in relation to the falling U.S. dollar would hurt Japan’s major export industries. However, overall, we think that Japan’s economy will keep growing and push stock prices up. JAPAN EQUITY FUND $7.39 (New York symbol JEQ; CWA Rating: Aggressive) invests mostly in large capitalization stocks on the Tokyo Stock Exchange. Lately, the fund has added to its holdings of firms selling to emerging markets, to offset exposure to the slowing U.S. economy. It has also upped its holdings of Japanese financial stocks. These have limited exposure to subprime-related securities. The Japan Equity Fund’s top holdings include: Toyota Motor, Mitsubishi UFJ Financial Group, Mizuho Financial, Sony Corp., Denso Corporation, Mitsubishi Corp., Canon, East Japan Railway, Komatsu Ltd. and Takeda Pharmaceutical Co....

SONY CORP. ADRs $46.77, New York symbol SNE, rose 5% this week after Toshiba Corp. said it would abandon its HD DVD high-definition video format due to declining sales and market share. Sony is the leading developer of the rival Blu-ray format, and the demise of HD DVD should lead to higher royalty income from sales of Blu-ray players and discs. The end of the format war should also fuel demand for Sony’s high-definition TV sets, as well as its PlayStation 3 video game console which includes a Blu-ray DVD player. Sony is a buy....

INTERNATIONAL BUSINESS MACHINES CORP. $106 (New York symbol IBM; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 1.4 billion; Market cap: $148.4 billion; WSSF Rating: Above average) is the world’s largest supplier of computers and information services. It operates in over 170 countries. IBM has long been a leader in large, mainframe computers for corporations and governments. As well, in the past five years, IBM has expanded its services and software operations through the purchase of over 60 companies for $20 billion. The company is now the world’s second-largest software company after Microsoft Corp. IBM now gets over 50% of its revenue from services, which include designing and maintaining computer systems for its customers. Services also give IBM steady, long-term revenue streams, which helps cut the risk of these acquisitions....

Computer technology stocks are among the most volatile in the Manufacturing & Industry sector of the economy, as we’ve seen with the current market turmoil. We think that the best way to invest in technology is through large, established, broad-based technology companies capable of funding expensive research and bringing new products to market. A great example is IBM. Its wide exposure to hardware and software limits its reliance on any single product. Its focus on computer services also gives it steadier revenue streams than most computer companies....

T. ROWE PRICE GROUP INC. $61 (Nasdaq symbol TROW; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 264.1 million; Market cap: $16.1 billion; WSSF Rating: Average) has raised its quarterly dividend 41.2%, from $0.17 a share to $0.24. The new annual rate of $0.96 yields 1.6%. T. Rowe Price has raised its dividend each year since it became a public company in 1986. T. Rowe Price is a buy. SONY CORP. ADRs $54 (New York symbol SNE; Conservative Growth Portfolio, Manufacturing & Industry sector; ADRs outstanding: 1.0 billion; Market cap: $54.0 billion; WSSF Rating: Above average) reports that U.S. sales of its PlayStation 3 video game player rose 300% in November compared to the prior month. Sales and market share should continue to grow as gamemakers release more games for the new console. Stronger sales of its digital cameras and notebook computers should also expand Sony’s earnings....

LA-Z-BOY INC. $6.00 (New York symbol LZB; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 51.4 million; Market cap: $308.4 million; WSSF Rating: Average) has struggled lately as the slump in the housing market has cut demand for new furniture. In its second fiscal quarter ended October 27, 2007, the company lost $0.07 a share from continuing operations, due to $0.08 a share in one-time charges. It earned $0.06 a share in the year-earlier quarter. Sales fell 11.9%, to $365.4 million from $414.6 million. Meanwhile, La-Z-Boy is doing a good job controlling its inventory. That puts it in a good position to profit when sales rebound. A cut to the $0.48 dividend, which yields 8.0%, is a possibility. But the stock would still yield 4.0% even after a 50% reduction. La-Z-Boy is a buy for patient investors....