“$45 Japanese Juggernaut to Hit $65 by February 1 GUARANTEED”

By Travis Johnson, Stock Gumshoe, January 4, 2011

Well, as you can imagine, the “GUARANTEED” part of that headline isn’t my word — nor are the rest of ’em, for that matter, I borrowed it all from the latest teaser for Robert Hsu’s Asia Edge newsletter.

In that ad, Robert (or his intrepid copywriters) tell us about a Japanese exporter that will jump dramatically in the weeks ahead, releasing earnings on February 1 — and of course, he’d be happy to tell you all about this stock if you’ll subscribe to his premium priced newsletter (Asia Edge is “normally” $2,995 — though with this promo it was offered at $995 in a 24-hour sale … and, you’ll probably be unsurprised to hear, the link for that 24-hour sale seems to still be available a week later, though I didn’t, of course, try to place an order).

So our task is before us: Figure out which “Japanese Juggernaut” Hsu is teasing. His Asia Edge newsletter has been around for many years, much like his China Strategy letter that’s more specifically focused on the China trade, and in this letter he has had a tendency to both give himself more leeway in terms of listings, choosing stocks that don’t have US listings or ADRs, and to broaden the universe of potential picks (in addition to the usual suspects like China and Japan he’s now including Brazil, Australia and Chile, along with more clearly Asian countries like Malaysia, Vietnam and Indonesia). He also pitches some of his other current ideas, but the main impulse to subscribe is his “Buy Now!” pitch for this Japanese stock.

Which is?

Let’s look at the clues, shall we? We already know about the February 1 earnings release, so that’s a good one — but there’s a bit more:

“Over the past 30 days as the yen has spiraled south, the same European insiders, institutional investors and mutual fund investors who have been shunning Japanese stocks for the past decade have been loading up on our top trade for the same reason we have.

“They see a huge breakout on earnings come February 1 and are positioning themselves now to profit-all thanks to these incredibly powerful forces that should hand investors a quick 30% to 50% gain in the next eight weeks:

“The falling yen
“A red-hot product line
“Brand-name popularity in the U.S.
“Rising profit margins, and
“A rock-bottom of PE of 10 that’s attracting millions of new investment from insiders, institutional investors and mutual fund investors.

“For these reasons, if you don’t act now-TODAY-and take a position in our a-rated Japanese exporter now, I guarantee you’ll kick yourself for years as the yen spirals south and this company’s earnings shoot through the roof come February 1.”

And we also get one little paragraph with a few helpful specifics:

“This is why our top Japanese trade, an overlooked brand-name electronics exporting juggernaut, has seen its net profit jump from a 50 billion yen loss to a 72 billion yen profit in just the last quarter-all while increasing operating profits a whopping 402%.”

So that’s quite enough to toss into the good ol’ Thinkolator — and when I did just that a few seconds ago, the answer came through in bold letters: this must be …

Hitachi (HIT)

Which, conveniently enough, does trade on the NYSE and is easy as pie to buy if you s