Dallas, Texas 09/17/2013 (Financialstrend) – Sumitomo Mitsui Financial Grp, Inc.(ADR) (NYSE:SMFG) and Itochu Corp are 2 Japanese trading houses that are now trading at very attractive valuations. They both have earned double digit profitability and are also paying out dividends that are in the range of 3%.
These 2 stocks are connected to global pricing and trade of raw materials, coking coal, iron ore as well as various other resources. These companies are referred to as trading-houses and there are around 5-6 of them in Japan. They are very large conglomerates and have been trading very profitably.
The two giants
Sumitomo Mitsui Financial Grp, Inc.(ADR) (NYSE:SMFG) is involved in various financial services related businesses. On the other hand, Itochu is more focused on different segments that pan industries such as energy and textiles. Both these companies are now trading at a low, 5-times cash-flow and earning very solid profits and paying out rich dividends, and analysts feel that both these stocks will rerate right through the next business-cycle. The projection is that they can rerate at least up to an additional 32-35%
Monday’s trading session
In Monday’s trading Sumitomo Mitsui Financial Grp, Inc.(ADR) (NYSE:SMFG) stock rose by 1.58%.The opening price of the shares was $9.67 which rose to an intraday high of $9.70 and dipped to close at $9.66. Approximately 2.17 million shares were traded on Monday and the average volume of shares traded over a 30 day period was 1.23. The company has a market cap of $65.39 billion.
About the company
Sumitomo Mitsui Financial Grp, Inc.(ADR) (NYSE:SMFG) is involved in the financial services related business. The Banking-segment is involved in the loan, deposit, foreign and domestic exchange, securities transaction, securities investment, bond registration and fiduciary, trust, insurance OTC sales business and security investment trust. Its Securities segment is completely engaged in the securities business.