Buy shares in East Japan Railway Company (JR)! Especially now, during the COVID-19 pandemic

Hello, tuna(@miyakojimalife_) (^^)

Finally, COVID-19 vaccinations have begun in Europe and the United States.

Japan has also reached a basic agreement to receive 60 million doses of the Pfizer vaccine by the end of June 2021.

In addition, Pfizer submitted an application to the Ministry of Health, Labor and Welfare on the 18th seeking approval for use in Japan.

It appears a decision on whether or not it will be approved could come as early as February.

While hopes for containing the coronavirus continue to rise,

In Germany, schools have been closed since the 16th, and retail stores selling non-essential goods have also suspended operations.

A curfew has been announced in France

In Japan, railway companies in the Tokyo metropolitan area have decided to suspend all-night service at the end of the year.

It looks like we’ll be continuing to live with COVID-19 for a while longer.

Amid all this, I purchased shares of East Japan Railway Company (9020) this week.

I’ll explain the reasons why.

Stock Price Trends Since Before the Pandemic

Before the pandemic, the stock price had been fluctuating in the range of the high 9,000 yen to the 10,000 yen range, but

In response to the COVID-19 pandemic, the need to avoid the “Three Cs,” and the rise of remote work,

It has been falling steadily

The year-to-date low was on October 30,5,446 yen

I had placed a limit order aiming for the 5,300 yen range, and I

It was such a shame (＿□＿：)

Thinking back to before the pandemic,

Stock prices have fallen by about 40–50% over the past year.

Since I tend to do better when going against the grain for some reason, this is a welcome situation for me.

If you look only at the stock prices, it’s like a winter clearance sale, but

The financial results are really tough (o_□_)o

Consolidated second-quarter earnings were significantly negative

Looking at the Second Quarter Financial Results Summary dated October 28,

Operating revenue compared to the same period last yearminus 731.5 billion yen

Revenue is only 51.8% of last year’s level.

Operating income and ordinary income were also significantly negative.

Net income alsominus 264.3 billion yenAnd the results were disastrous…

Incidentally, regarding the second-quarter financial results:All-time lowOperating revenue

The main attraction, in particular, suffered significant damage.

Transportation, Distribution and Services, Real Estate and Hospitality

Let’s look at revenue and profit

Transportation: Operating Profitminus 286 billion yen

The Distribution and Services Business posted an operating profitminus 13.7 billion yen

The real estate and hotel business barely managed to post a positive operating profit.800 million yen

Even so, profits amounted to only 2% of the previous year’s total.

Precisely because their core business operates in an industry heavily impacted by COVID-19,

This month’s financial results are really tough |ω･`)

Why I Bought It Anyway

It is unlikely that future financial results will show a year-over-year decline in revenue.

As everyone would expect,

I believe the current stock price reflects expectations of a full-year loss.

However, looking at the stability of the financial results over the past two years,

This is not a corporate issue, but rather

The main cause is a decline in revenue due to the coronavirus, and

Even if revenue does not return to pre-pandemic levels,

We expect the company to return to stable financial results.

In addition, cost-cutting initiatives and

Measures such as bringing forward the last train and delaying the first train, etc.

I think their efforts to create some breathing room are also值得 praising.

While providing the infrastructure essential to daily life,

It operates shopping malls and hotels—located in prime locations directly connected to train stations—through its subsidiaries,

Also handles credit cards such as VIEW Card

I believe it is a company with a high degree of stability.

1. I have the ability to earn a living
2. The cause is COVID-19
3. Lowest-ever operating revenue for a second quarter
4. COVID-19 Vaccinations Begin in Europe and the U.S.

I thought, “I might as well just buy it while I’m at it,” so I clicked the buy button.

No one knows how things will turn out.

I’ve managed to survive so far by buying during market crashes and taking contrarian positions—and getting lucky—so

I’ll keep researching until I’m satisfied with the results.

Finally,

“It’ll all work out” (￣人￣)

I hope this article helps someone discover the joy of investing.

Thank you for reading to the end*ᴗ ᴗ)⁾⁾