Healthy Investing = Wealth #14

by | Aug 27, 2003 | Archives

Haneda Airport, 1968. A message from Japan then shows us a path to riches now. Two powerful ways to enhance wealth is through the Wellness Revolution and by cashing in on currency shifts. Here is a way we might make money on both at once.

To help us do this, here is an excerpt from the course International Currencies Made EZ. You are welcome to download this course FREE at

I am flying abroad for the first time from Portland, Oregon to Vancouver, Canada, then on to Hong Kong via Japan. The plane touched down in Tokyo and I am wandering through the transit lounge. There are so many sights and sounds that are strange to me. Plastic samples of meals sit in the restaurant windows and the brands are those I have never heard. I step to the bar and am offered a Kirin beer or a Suntory whisky. “Are they good?” I ask. “Of course,” is the reply. “How much do they cost?” I ask. “Just divide the price by 400 and you will have the dollar price,” I am told. “One dollar is 400 yen!”

Had I only known then that the yen would rise in value over the next 27 years to reach a high of 79 yen per dollar, I imagine I would have purchased as many yen as possible.”

However after the yen rose to such heights, in the early 1990s Japan's stock and real estate market crashed. Interest rates slumped to all time lows and the yen crashed. For more than a decade I have been helping investors earn enormous profits borrowing yen to invest in higher earnings currencies.

Now as weak economics shift to the U.S. and the dollar weakens, Japan is finally showing some signs of growth. This is why Monday's messageshows Jyske Bank reducing the yen borrowing in its Multicurrency Sandwich model.

Holding the right currencies is a most important way to protect purchasing power, but spotting trends is valuable too. This is why we have been looking at shares that cash in on the Wellness Revolution. So here is a share that captures the Wellness Revolution and is in Japan. This is another share I picked up through the research of eClub advisor Michael Keppler who rates markets based on good value. Michael follows dozens of such shares and sent me a ton of data. Suzuken Co. is a Japanese share (listed on the Tokyo stock exchange # 9987) that may offer good value now. Researching this share led me to Given Diagnostic systems listed at Nasdaq under the code GIVN.

Given Imaging Ltd. is the developer of the M2A ingestible capsule endoscope and the Given Diagnostic System. Marubeni Corporation (TSE: 8002) one of Japan's largest trading corporations, and Suzuken Co., Ltd. (TSE: 9987), Japan's largest pharmaceuticals distributor, announced the formation of a joint venture in late 2002 to commercialize the Given Diagnostic System and the M2A capsule endoscope in Japan.

The joint venture, Given Imaging KK, will submit a request for regulatory and insurance reimbursement coverage in Japan, and then launch and market the Given Diagnostic System. Suzuken, which has more than 3,500 sales representatives, nearly countrywide coverage, and over $7 billion in sales last year, was appointed by Given Imaging KK as its exclusive sub-distributor in Japan. Marubeni, with approximately $75 billion in trading volume last year, was appointed Given Imaging KK's exclusive import agent. Triangle Technologies Ltd., which has helped form numerous strategic alliances in Japan, assisted Given Imaging in forming the joint venture. There is enormous potential for the M2A capsule endoscope in Japan and the venture with these large partners can accelerate our penetration. By combining Marubeni's unparalleled presence in Japan with Suzuken's broad medical products distribution channel and Given's proven marketing experience, they have created a formidable force in gastrointestinal diagnostics.

I was first attracted to Suzuken by its good value numbers.

Its P/E ratio is a low 12.3 and its dividend at 0.81 is the highest in this sector for a Japanese company (which generally do not pay high dividends). The company also has almost no debt with a Debt/Equity ratio of four (the MSCI benchmark is 64). Price-to-book value is less than half of any other Japanese share in this sector plus its price-to-cash flow is much lower than any other as well.

Add this all together and you'll see that Suzuken (and perhaps Given Imaging at Nasdaq) are worth more than a second glance.

Join us in Jefferson Landing Golf and Country Club in West Jefferson North Carolina in November with Thomas Fischer of Jyske Bank to learn more about cashing in on the Wellness Revolution, how to invest in value shares and enhance wealth through choosing the correct currencies. For details go to next message, may all your investments be well.