AI-powered weekly stock research on Japan’s overlooked mid & small-cap market —
written in English, straight from Tokyo.
About This Site
This is a Japanese stock research blog run by roz, an individual investor based in Japan with six years of investing experience.
Every week, an AI-driven screening system analyzes approximately 1,500 mid- and small-cap stocks listed on the Tokyo Stock Exchange — focusing specifically on companies that are virtually invisible to overseas investors due to the near-total absence of English-language disclosures and sell-side analyst coverage. The most compelling picks are published as detailed English-language investment reports.
The idea behind this site is simple. Every time I discover an interesting stock through the screener, I find myself asking the same question: why doesn’t the world know about this? This blog is my way of recording and sharing those discoveries — partly for my own clarity, and hopefully as a useful resource for other investors interested in Japan’s overlooked corners of the market.
How the Screening Works
Universe: Approximately 1,500 stocks from the TOPIX Mid400, Small1, and Small2 indices (market cap up to ~¥300 billion / ~USD 2B).
Each stock is scored across three dimensions, rated out of 100 points:
📈 Growth — Weight: 35%
| Metric | Max | Scoring |
|---|---|---|
| Revenue growth YoY | 30 pts | >30%→30, >20%→25, >10%→18, >5%→10 |
| Operating margin improvement | 25 pts | >+5pp→25, >+2pp→18, any improvement→10 |
| EPS revision rate | 25 pts | >+15%→25, >+5%→18, ±5%→10, downward→0 |
| Growth acceleration | 20 pts | Accelerating→20, Stable→10, Decelerating→0 |
* Full-year (FY) data is used where available; quarterly data is used as a fallback.
💰 Value & Financial Health — Weight: 35%
| Metric | Max | Scoring |
|---|---|---|
| PBR (Price-to-Book) | 20 pts | <0.7x→20, <1.0x→15, <1.5x→8, <2.0x→4 |
| PER (Price-to-Earnings) | 20 pts | <10x→20, <15x→15, <20x→8, <25x→4 |
| Equity ratio | 30 pts | >65%→30, >50%→22, >40%→12, >30%→5 |
| ROE (Return on Equity) | 30 pts | >20%→30, >15%→22, >10%→12, >7%→8 |
* PER uses the company’s forecast EPS (FEPS) where disclosed.
📊 Demand & Momentum — Weight: 30%
| Metric | Max | Scoring |
|---|---|---|
| Relative Volume (RVOL) | 40 pts | ≥3.0x→40, ≥2.0x→30, ≥1.5x→20, ≥1.2x→10 |
| Price breakout | 30 pts | 52-week high→30, 13-week→20, 4-week→10 |
| 20-day price momentum | 20 pts | >+15%→20, >+8%→15, >+3%→10, positive→5 |
| RVOL continuity (5-day) | 10 pts | ≥3 days with RVOL>1.5→10, 2 days→5, 1 day→2 |
Composite Score & Verdict
Composite = Growth × 0.35 + Value × 0.35 + Demand × 0.30
| Verdict | Condition |
|---|---|
| ✅ BUY | Demand ≥ 60 AND (Growth ≥ 60 OR Value ≥ 60) AND Composite ≥ 65 |
| ⚠️ AVOID | Demand < 30 OR (Growth < 30 AND Value < 30) |
| 👁️ WATCH | Everything else |
Each week, the top 3 BUY/WATCH candidates are selected and published as in-depth reports — one each on Monday, Wednesday, and Friday.
🔧 These criteria are a work in progress. When better signals or thresholds are identified, the methodology will be updated and changes will be reflected on this page.
About roz
An individual investor based in Japan with six years of investing experience. Drawn to mid- and small-cap stocks where information asymmetry creates pricing inefficiencies that patient investors can exploit. Started this blog to organize personal investment thinking and share discoveries that rarely surface in English-language financial media. Not a professional investor or financial advisor — just a local market participant writing honestly about what the screener finds.
Disclaimer
All content on this site is for informational purposes only and does not constitute investment advice or a solicitation to buy or sell any securities. Investment decisions are made entirely at your own risk. The author is not a registered financial advisor or broker-dealer.