ADRs

In April of last year, I made the case of going long Vodafone (VOD).

Since then, I’m up nearly 44% on my purchase price (including dividends). Vodafone currently yields nearly 7.5%.

Recently, Barrons had a good article on why investors should still consider investing in Vodafone.

Its ADRs, which trade on Nasdaq and each represent 10 ordinary U.K.-listed shares, could rise more than 20%, to $35-$38, over the next two years. Including dividends, the total return could top 35%, with significantly less volatility than the average stock, given Vodafone’s relatively stable business. (Vodafone ordinary shares closed in London Friday at 180 pence. The ADRs finished near $29.)

There were also several quotes from fund managers:

“Vodafone’s stock is significantly undervalued,” avers Bruno Lippens, a portfolio manager with Pictet Asset Management, “essentially because the market still doesn’t appreciate Verizon Wireless” and the way the dividend will translate into reliable future cash. While there’s no formal annual commitment, Verizon Wireless has little net debt and produces about $1 billion monthly in Ebitda. “Absent massive investment needs, I don’t see an alternative” to paying out a regular annual dividend, adds Lippens, who sees some 40% upside in Vodafone.

The author of the article also thinks that a liquidation of Verizon Wireless could occur within five years, which could be as high as 50% of VODs current market cap.

In a previous post I had mentioned that a Japanese REIT was going IPO. I was wondering how I could get in on the action. It seems like a good idea – the Dollar should weaken against the Yen and Japan’s Real Estate should appreciate after almost a decade and a half of stagnation.

It seems its rather more difficult than it is in the US. Unless you buying a stock that trades as an ADR, you need to open an account that allows you to purchase stocks on a foreign exchange. Luckily I had already an account with Interactive Brokers to buy Australian dollars which allows me to trade on the Tokyo Stock Exchange.

Unfortunately, there’s a 13 hour time difference and so the trades have to be placed in the evenings. Also its a little bit trickier than placing trades through a US online-trader and there’s no phone support [although there is online chatting] and the Tokyo Stock Exchange doesn’t really provide much information about the individual stocks.

Anyway, here’s a list of Japanese REITs that trade on the TSE. You’ll notice that they have codes instead of ticker symbols. Also their prices are listed in Yen which is currently around 118 yen to the US dollar but that fluctuates minute by minute!

Good luck!

3229 / JP3046460006 Nippon Commercial Investment Corporation.
3227 / JP3046450007 MID REIT, Inc.
3226 / JP3046440008 Nippon Accommodations Fund Inc.
8963 / JP3046190009 TGR Investment Inc.
8987 / JP3046420000 Japan Excellent, Inc.
8986 / JP3046410001 re-plus residential investment inc.
8985 / JP3046400002 Nippon Hotel Fund Investment Corporation
8980 / JP3046350009 LCP Investment Corporation
8984 / JP3046390005 BLife Investment Corporation
8983 / JP3046380006 Creed Office Investment Corporation
8982 / JP3046370007 Top REIT, Inc.
8981 / JP3046360008 Japan Hotel and Resort, Inc.
8978 / JP3046330001 Advance Residence Investment Corporation
8977 / JP3046320002 Hankyu REIT, Inc.
8976 / JP3046310003 DA Office Investment Corporation
8975 / JP3046300004 FC Residential Investment Corporation
8974 / JP3046290007 eASSET Investment Corporation
8973 / JP3046280008 Joint Reit Investment Corporation
8972 / JP3046270009 Kenedix Realty Investment Corporation
8970 / JP3046260000 Japan Single-residence REIT Inc.
8969 / JP3046250001 Prospect Residential Investment Corporation
8968 / JP3046240002 Fukuoka REIT Corporation
8967 / JP3046230003 Japan Logistics Fund, Inc.
8966 / JP3046220004 CRESCENDO Investment Corporation
8965 / JP3046210005 New City Residence Investment Corporation
8964 / JP3046200006 Frontier Real Estate Investment Corporation
8962 / JP3046180000 Nippon Residential Investment Corporation
8961 / JP3046170001 MORI TRUST Sogo Reit, Inc.
8960 / JP3045540006 United Urban Investment Corporation
8959 / JP3045530007 Nomura Real Estate Office Fund, Inc.
8958 / JP3044520009 Global One Real Estate Investment Corporation
8957 / JP3044510000 TOKYU REIT, Inc.
8956 / JP3041770003 Premier Investment Company
8955 / JP3040890000 Japan Prime Realty Investment Corporation
8954 / JP3040880001 ORIX JREIT Inc.
8953 / JP3039710003 Japan Retail Fund Investment Corporation
8952 / JP3027680002 Japan Real Estate Investment Corporation
8951 / JP3027670003 Nippon Building Fund Inc.