Are There Any Screaming Buys in Japan?

"Excluding financials, the Topix [a key Japanese stock index] companies are trading at 25-year lows based on price-to-earnings, price-to-recurring-profit, and economic value to Ebitda, according to Mitsubishi UFJ securities. The dividend yield is close to a 25-year high."

So wrote Leslie Norton in her Barron's column a few weeks back. Sure, the Japanese economy ain't perfect, and the market could remain stagnant or head even lower--but if you like value stocks and hear that an important global market is trading at 25 year lows by some measures, that's got to grab your interest.

One theme in particular that I've come across is Japanese companies with humungo (yes, that's a real word, at least according to Urban Dictionary) holdings of cash and securities of other companies, a somewhat common phenomenon in Japan. Here's one example, an analysis of advertising company Asatsu-DK (9747).

Despite value trap risk, if you can find situations where you don't pay much for the underlying business when viewed net of cash and securities (and maybe taxes), I'd say you have a solid beginning to your investment thesis.

For more Japanese stock ideas, read Norton's interview with Jesper Koll of Tantallon Capital. And if you like the idea of getting a business for dirt cheap net of cash, see my post here.

Or maybe the real steal is in the UK?