"If you own a television, chances are you're quite familiar with the infamous squawking duck in Aflac's commercials. Aflac has also been in the news lately as the first American company to give shareholders a 'say on pay', or the ability to vote on executive compensation.
"Less well known, however, is Aflac's huge presence in the Japanese insurance market. In 2007, roughly 75% of the company's pre-tax operating earnings were generated in Japan.
"Alfac has been doing business in Japan for more than 30 years, and one in four Japanese households has an Aflac insurance policy. In Japan, Aflac sells healthcare policies for certain things that aren't covered by the national healthcare system, as well as life insurance. And, yes, they have a talking duck in their ads over there too.
"At a time when many financial companies are reporting massive write-offs, Aflac reiterated its target of 15% earnings growth this year, and double-digit growth in 2009. Aflac Japan is doing its part to help drive this growth with 19% operating earnings growth in the first quarter of 2008."
Each day, Steven Halpern's TheStockAdvisors.com offers the latest market commentary and favorite investment ideas from the nation's leading financial newsletter advisors.
"Will the 'Land of the Rising Sun' ever rise again?" asks Mike Burnick in Global Market Investor. "From a valuation perspective, Japan is a real bargain; in fact, half its stocks trade below book value." Here is his review.
"First, let's cover the bad news; Japan's economy is slowing right now, just like the U.S. and Europe. Consumer spending is slumping worse than in the U.S. In other words, the domestic economy looks dismal. But at the same time, Japan's exports are booming, businesses are flush with cash, and industrial production is running strong.
"The reason is that Japan is an economy in transition, for years they counted on exports to the U.S. and Europe, but today China is becoming its most important trading partner. Exports to China jumped nearly 14% in November, as overall exports expanded 10%. That's why a slowdown in the U.S. and Europe may not hurt Japan as much as some people think.
"What was already one of the world's cheapest markets just went into deep-discount territory last year. In fact, half the stocks listed in Tokyo now trade below book value. In other words, the share price is less than the stock's per share net worth – that's unheard of in developed markets.
For 25 years, Steven Halpern, editor of TheStockAdvisors.com, has surveyed the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is one of 100+ ideas in the Best Stocks for 2008 report.
"I like Aflac (NYSE: AFL) as a top conservative choice for 2008," says Chuck Carlson, editor of The DRIP Investor. "The stock is a true 'steady eddy' performer and represents a cornerstone holding for any dividend reinvestment-based portfolio.
"Aflac is the number one provider of "guaranteed-renewable" insurance in the U.S. and the number one insurance company in terms of individual insurance policies in force in Japan. The firm insures more than 40 million people worldwide.
"Aflac's products should see good demand going forward as copays and deductibles are likely to increase for US and Japanese workers over the next several years.
"From a dividend perspective, there's a lot to like. Dividends have increased for 25 consecutive years, and dividend growth has been impressive. Dividends have been increased twice in 2007. With the consensus earnings estimate of $3.80 per share in 2008, look for the firm to give shareholders a generous dividend boost next year.
"Overall, the company offers the stability and consistency investors crave during volatile markets and the stock should handily outperform the market in 2008. Investors should note that Aflac offers a direct-purchase plan whereby any investor may buy shares directly from the company, the first share and every share."
For 25 years, Steven Halpern, editor of TheStockAdvisors.com, has surveyed the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is one of 100+ ideas in the Best Stocks for 2008 report.
"Japan has been one of the most out-of-favor major industrial stock markets over the past two years, yet corporate profits are growing at a fast pace, thanks to a robust export market. Japan's proximity to China certainly helps in this regard, as Japan has become a key exporter to China, as well as other emerging Asian nations.
"From a valuation perspective, Japan appears to be the most undervalued major market in the world right now. Many blue-chip Japanese banks and industrial firms sell at book value or even less then book.
"Meanwhile, bonds typically yield more than stocks, to compensate investors for the lack of appreciation potential in bonds. However, in Japan today the normal stock/bond risk/reward relationship is turned upside-down.
"Asia is still the place to be if you are looking for growth," says John Christy in The Forbes International Investment Report. Here, he looks at some favored Asian banking stocks -- in Japan, India and Korea.
"While China tends to get all of the headlines, the rest of Asia is on a solid economic growth trajectory for 2008. According to the latest Economist data, Hong Kong, South Korea, Singapore and Malaysia are all expected to deliver 5%+ gross domestic product growth next year. Taiwan isn't far behind at 4.6%.
"Of course, these numbers pale in comparison to forecasts of 10% for China and nearly 8% for India, but they're nothing to be ashamed of. With forecasts for Europe, the U.S. and Japan all hovering around 2%, Asia is still the place to be if you're looking for growth.
"Stock prices reflect much of this, but there are still plenty of pockets of opportunity. Asian financials are a good example. These names have been somewhat unfairly dragged down by the global credit mess and subprime fallout.
The land of the rising sun may be the investor's best bet as a land of rising stock prices, according to a trio of leading advisors.
Japan's current economic expansion is now over 60 months and running, making it the longest expansion in that country in the postwar period according to global advisor expert Carl Delfeld. He says, "Investors should not underestimate Japan's potential - it may be the best growth story in Asia."
The editor of Chartwell Advisor explains, Japanese stocks took a breather in 2006 -- rising 5.5% -- after gaining 35% in 2003, 15% in 2004 and 25% in 2005.
Despite these gains, he notes that the Japanese market is still 60% below its 1989 peak. Is it time to catch up? He says, "Investors should not underestimate Japan's potential - it may be the best growth story in Asia."
Indeed, while many see Xhina as the more exciting growth play, he says, "Japanese companies have long tentacles in emerging Asia, with especially strong networks in Southeast Asia. Plus, in Japan, there is a mountain of cash sitting on the sidelines. Even if just a small amount moves into equities, it will ignite some handsome returns."
Among individual stocks, he likes Kyocera (NYSE:KYO), a large multinational with products and markets that span electronics, fiber optics, and wireless. For broad exposure to the Japanese market, he recommends the iShares Japan ETF (ASE:EWJ), which tracks the MSCI Japan index, which is made up of 350 companies.
I've just returned from the World Money Show in Orlando where more than 10,000 investors gathered to learn about global investing. I had a chance to meet with many of the financial experts and global company representatives featured at the show, and over the next week I will share some of their top investment ideas. To view all of the stocks featured in this special global report, click here.
Visiting from Japan was mobile phone operator NTT DoCoMo (NYSE:DCM), whose stock is a favorite buy from Tony Sagami, editor of the Asia Stock Alert and a global analyst with Martin Weiss Research.
In reviewing the company, Sagami is particularly impressed with its new "portable wallet," which lets a cell phone act a credit card.
First, he notes, "The company just reported its results for the first nine months of its fiscal year (through the end of December). And while the firm delivered essentially flat sales and profits from the same period last year, DoCoMo still made $3.3 billion of profits on $29.7 billion of sales in the last nine months.
"Meanwhile, three items impressed the heck out of me. First, DoCoMo grew its subscriber base from 50.3 million last year to 52.2 million today. For a country whose cellular phone market is mature and very saturated, that additional 1.9 million cellular subscribers is pretty impressive.
"In addition, DoCoMo generates about $6 billion of free cash flow each year and has been using those dollars to buy back stock, increase its dividend, and invest in building out its network and new cutting-services, such as osaifu-ketai.
"I like 
Comfort Zone Investing: Keep your recovery expectations real
Will Americans have to slim down to fit into their cars?
Starbucks: The next McDonald's
