INTERNET INITIATIVE JAPAN IN ADR SPONSORED (IIJI)

[Allornothing0]

.

[HuntforRedStocktober]

Lights are flashing, but no trades going through, seems like they are trying to stimulate some movement. Strange, a company so interesting just dead in the water.

RED

[HuntforRedStocktober]

very little volume on this stock, but seems like a good one. what happened with your play?

RED

[doctorS]

Does anyone post here anymore?? Picked up a few thousand shares and getting killed. Averaged at 6 1/2 dollars. docS

[indignation301]

BUYING HERE

[Golden Cross]

Citizens, CenturyTel mull rural consolidation
Wed Mar 29, 2006 7:03 PM ET
By Sinead Carew

NEW YORK, March 29 (Reuters) - Citizens Communications Co. (CZN.N: Quote, Profile, Research) and CenturyTel Inc. (CTL.N: Quote, Profile, Research) may take part in the consolidation of the U.S. telecommunications industry, according to top executives who laid out criteria for potential deals on Wednesday.

FACT BOX

CZN.N (Citizens Communications Co)
Last: $13.53
Change: +0.21
Up/Down: +1.58%


AprJulOctJan
Quote
Full Chart
Company Profile
Analyst Research
News for CZN.N
Citizens, CenturyTel mull rural consolidation
Citizens Communications names new CFO
As Alltel Corp. (AT.N: Quote, Profile, Research) and Sprint Nextel Corp. (S.N: Quote, Profile, Research) spin off their local phone units, and AT&T Inc. (T.N: Quote, Profile, Research) plans to buy BellSouth Corp. (BLS.N: Quote, Profile, Research), some investors are expecting another spate of deals in the local telephone service market.

Citizens' President Jerry Elliott said mergers should help local providers operate more efficiently by pooling costs for information technology, accounting and human resources.

"There's no reason to have a bunch of stand alone companies. As many of them as possible should be combined," Elliott said on the sidelines of the Bank of America's Media, Telecommunications and Entertainment conference.

A banker familiar with the industry believes CenturyTel and Citizens are ripe for consolidation because they need more phone lines and services to compete against larger rivals.

Elliott said Citizens was "agnostic" as to whether it would be a buyer or a seller, but if it was to buy another company, it would ideally be in another rural market, where there is less competition and customers are more loyal.

The U.S. south-west and mid-west would be Citizens preferred geographic location for potential mergers and any deal would have to allow the company to maintain its dividend to free cash flow ratio of around 60 percent, Elliott said.

Stamford, Connecticut-based Citizens, which operates in 24 states, plans to pay a 25 cent dividend on March 31.

Elliott did not name any potential acquisition targets and said he did not "know of any today."

CenturyTel's Chief Financial Officer Stewart Ewing said his company would be most interested in deals for phone lines close to its operating region, unless they were big enough deals, with 50 to 100 thousand lines, to be worth going further afield.

"There's certainly properties we'd look at if they were to come on the market," he said at the same conference. CenturyTel operates in 26 states in rural areas and small- to mid-size cities.

He would not comment on specifics but said any deal would have to look more attractive to shareholders than CenturyTel's repurchases of its own shares. CenturyTel said last month its board authorized a stock repurchase of up to $1 billion.

Asked if CenturyTel would entertain any acquisition offers, Ewing told the audience: "I'm convinced our board would do the right thing if we were approached with an attractive offer."

But he said a sale would not be a requirement.

"We think we're large enough to have the scale ... to manage the access lines we have," he said.

He said CenturyTel may consider raising its dividend if it does not find other suitable investment opportunities. Monroe, Louisiana-based CenturyTel's dividend is just over 6 cents per share. (Additional reporting by Jessica Hall in Philadelphia)

[Golden Cross]

Mobile call price declines to slow -Sprint exec
Wed Mar 29, 2006 7:49 PM ET
NEW YORK, March 29 (Reuters) - The price of mobile phone calls should decline more slowly in 2006 than in recent times as the duration of phone calls expands less rapidly, a top executive at Sprint Nextel Corp. (S.N: Quote, Profile, Research) said on Wednesday.

U.S. operators have driven down the price of mobile phone calls in recent years as they tried to win new customers or steal each other's subscribers in the fiercely competitive market, which had as many as six national operators at one point.

FACT BOX

S.N (Sprint Nextel Corp)
Last: $25.69
Change: +0.08
Up/Down: +0.31%


AprJulOctJan
Quote
Full Chart
Company Profile
Analyst Research
News for S.N
Mobile call price declines to slow -Sprint exec
Citizens, CenturyTel mull rural consolidation
UPDATE 1-Verizon broadband deregulation contested by rivals
But as increases in the amount of time customers spend on the phone slow, operators will likely be less aggressive in lowering their prices this year, according to Len Lauer, chief operating Officer of Sprint, the No. 3 U.S. cellphone service.

"There will be some price declines, but I think it will be a little more restrained than previous years," Lauer told investors at a Bank of America conference here.

While the average customer monthly cellphone minutes of use had increased as much as 35 percent a year in recent years, Lauer expects an industry growth rate between 10 percent and 16 percent this year.

Ovum analyst Roger Entner estimated that average U.S. mobile phone call prices have dropped about 72 percent to about 6.5 cents a minute, down from about 24 cents a minute in 2001.

There are now four national U.S. wireless providers.

Sprint bought Nextel in 2005, and Cingular Wireless bought AT&T Wireless the year before. Cingular, the No 1 U.S. wireless company, is owned by AT&T Inc (T.N: Quote, Profile, Research) and BellSouth Corp. (BLS.N: Quote, Profile, Research), which plan to merge.

Verizon Wireless, a venture of Verizon Communications (VZ.N: Quote, Profile, Research) and Vodafone Group Plc (VOD.L: Quote, Profile, Research), is the No. 2 U.S. service provider, and T-Mobile USA, owned by Deutsche Telekom AG (DTEGn.DE: Quote, Profile, Research), is ranked No. 4 by subscriber numbers.

[Golden Cross]

Microsoft Joins Messaging Anti-Abuse Working Group to Help Fight Spam and Email Threats
Tuesday March 14, 11:30 am ET
Will Serve on MAAWG Board of Directors


SAN FRANCISCO, March 14 /PRNewswire-FirstCall/ -- Microsoft Corp., with its Outlook, Exchange Server and MSN Hotmail(TM) email offerings, has joined the global Messaging Anti-Abuse Working Group (MAAWG), an organization where network operators and vendors join forces to reduce spam and email abuse. Microsoft has made a significant commitment to the organization's efforts by joining at the highest membership level and will serve on the MAAWG Board of Directors.
ADVERTISEMENT


Microsoft's MSN Hotmail(TM) represents one of the largest and most popular online email communities. With this addition to the existing members' ISP networks, MAAWG now represents over half a billion mailboxes worldwide in the fight against both consumer and business online abuse, including the three largest providers of consumer email in the world. The service providers and vendors who are members of MAAWG cooperate in developing best practices to limit network access to spammers and in identifying new email threats. The organization also serves as the industry's voice on issues of public policy.

"We believe that threats like spam, phishing and malware must be addressed on several fronts, including technology innovation, industry and government collaboration, and user education and guidance, to help ensure online trust and confidence," said Craig Spiezle, director, Microsoft Technology Care and Safety Group. "MAAWG's goals closely align with Microsoft's commitment to holistically address these issues, and we look forward to working with the organization and its members as we collectively continue to further industry-wide efforts to create a safer and more secure online experience."

Microsoft joins other major Internet Service Providers and vendors from around the world, including key Internet, telecommunications and broadband network operators from the United States, Canada and Europe.

"MAAWG is recognized as being one of the most effective organizations for fighting abuse globally and it is where companies that are serious about fighting spam can cooperate and leverage their expertise," said Jonathan Curtis of Bell Canada, who is chairman of the MAAWG board of directors. "We welcome Microsoft and believe their experience and depth will play a vital role in helping us eliminate excessive spam and abuse."

Microsoft joined at the sponsor level and participated as a board member at the MAAWG 6th General Meeting in San Francisco on Feb. 28 through March 2. The meeting was another opportunity the organization provides for ongoing face-to-face industry dialogue on technical and collaborative efforts to reduce spam, evaluation of anti-abuse tools, public policy and other vital issues.

About the Messaging

[Golden Cross]

IIJ Acquires Patent Rights to SMF
Wednesday March 29, 9:00 pm ET


TOKYO--(BUSINESS WIRE)--March 30, 2006--Internet Initiative Japan Inc. (IIJ, NASDAQ: IIJI, Tokyo Stock Exchange Mothers: 3774), one of Japan's leading Internet access and comprehensive network solutions providers, today announced it has acquired the patent rights to the basic operations of SMF ("SEIL Management Framework"), a centralized network management system that was originally developed and introduced by IIJ in February 2003.
Outline of Patent

Patent number: Patent No. 3774433
Name of Invention: Means of connecting to a network--centralized
management system and procedures

SMF is a centralized network management system that was independently developed by IIJ. SMF uses a central server to perform integrated management of communication devices or household appliances that are installed in the workplace or the home. The technology allows users to take advantage of network services without having to perform complex initial set-up procedures, or to change settings. The specific features that are offered are as follows:

Auto-configuration function based on 'zero configuration,' under which the user only needs to connect communication devices with built-in SMF functionality to a network and turn on the power. All settings are made automatically.
Push-type transmission function that automatically updates set-up information (additions and deletions) to all communication device from the central management server.
Automatic surveillance function that allows a constant monitoring and management of the operating conditions of communication devices.
The acquisition of this patent represents an acknowledgment of the novelty and originality of SMF and the growing importance of using a system that completely removes the burden configuring and connecting increasingly complex devices to a network.

Merits of and Background to the Present Technology

In the past, setting up a network was expensive and time-consuming since a specialist network engineer would have to individually configure all routers and other communication devices. SMF has been developed to avoid this problem by performing automatic set-up and enabling centralized management.

With the SMF network management system, users can simply connect communication devices to a network and turn on the power. All settings are then made automatically. Users can thus easily take advantage of secure high-level in-house or household network services without regard to communication devices.

Future Development of Services using the Present Technology

As well as developing its own services based on SMF (such as the IIJ SMF Service and the IIJ Internet-LAN Service), IIJ has also been providing SMF technology to numerous other companies, some of which are listed below. The company is also developing auto-generation technology for the automatic generation of network device functions by making use of SMF. IIJ is currently in the process of applying for the relevant patents (Patent Application 2005-321082).

IIJ is actively seeking to further promote and widen the use of SMF in a wide range of network environments.

List of IIJ services based on SMF

Service Announcement Date Outline
----------------------------------------------------------------------
IIJ SMF Service 24 June 2003 Central management service for
SEIL routers developed by IIJ
----------------------------------------------------------------------
IIJ Internet-LAN 5 October 2005 Service for simple set-up of
Service Ethernet WAN environment
----------------------------------------------------------------------


List of third-party services based on SMF

Service Announcement Date Vendor
----------------------------------------------------------------------
KCOM SMF Service 19 April 2004 KDDI Network and Solutions Inc.
(formerly KCOM Inc.)
----------------------------------------------------------------------
SMF SETTERFREE 24 June 2004 NEC Networks & System
Integration Corporation
(formerly NEC System
Integration & Construction,
Ltd.)
----------------------------------------------------------------------
QTNet SMF Service 8 November 2004 Kyushu Telecommunication Network
Co., Inc.
----------------------------------------------------------------------
OCN-SMF Service 30 January 2006 NTT Communications Corporation
----------------------------------------------------------------------


List of third-party communications devices with built-in SMF
functionality

Product Announcement Date Vendor
----------------------------------------------------------------------
FutureNet MA-410- 22 February 2005 Century Systems Inc.
SEIL Series
----------------------------------------------------------------------
BB MediaRouter 14 October 2005 Oki Electric Industry Co., Ltd.
----------------------------------------------------------------------

About IIJ:

Founded in 1992, Internet Initiative Japan Inc. (IIJ, NASDAQ: IIJI, Tokyo Stock Exchange Mothers: 3774) is one of Japan's leading Internet-access and comprehensive network solutions providers. IIJ and its group of companies provide total network solutions that mainly cater to high-end corporate customers. The company's services include high-quality systems integration and security services, Internet access, hosting/housing, and content design. Moreover, the company has built one of the largest Internet backbone networks in Japan, and between Japan and the United States. IIJ was listed on NASDAQ in 1999 and on the Mothers market of Tokyo Stock Exchange in 2005. For more information about IIJ, visit the IIJ Web site at http://www.iij.ad.jp/en/.

The statements within this release contain forward-looking statements about our future plans that involve risk and uncertainty. These statements may differ materially from actual future events or results. Readers are referred to the documents furnished by Internet Initiative Japan Inc. with the SEC, specifically the most recent reports on Forms 20-F and 6-K, which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements.



Contact:
IIJ Corporate Communications
[phone]
[e-mail]
http://www.iij.ad.jp/

[Golden Cross]

IIJ Adds Storage Feature to IIJ Mail Gateway Service
Wednesday February 15, 9:00 pm ET
New Mail Archive Option Allows Full-Text Storage and Search of E-Mail, and Expands on Anti-Virus, Anti-Spam, Mail Audit Features


TOKYO--(BUSINESS WIRE)--Feb. 16, 2006--Internet Initiative Japan Inc. (IIJ, NASDAQ: IIJI, TSE Mothers: 3774), one of Japan's leading Internet access and comprehensive network solutions providers, announced today that it will release its Mail Archive Option, an e-mail archive feature on the enterprise mail management service IIJ Mail Gateway Service on 28 February 2006.
ADVERTISEMENT


The IIJ Mail Gateway Service monitors e-mail between corporate e-mail systems and the Internet and provides e-mail security such as anti-virus and anti-spam functions as well as prevents leaks of sensitive information.

The new Mail Archive Option archives all incoming and outgoing e-mail on a storage medium at the IIJ Data Center, and allows customers to search, monitor, download, and delete messages through a special Web interface. The archived mail can be searched by date, header information (From, To, Subject, and other fields), and other keyword searches, and when archive sizes reach a critical level, e-mail notification is sent out, and the customer can choose to delete messages by date.

Used in conjunction with the IIJ Mail Gateway's anti-virus feature, this new service allows the removal in advanced of useless messages to save space and increase efficiency.

With the Act on the Protection of Personal Information and the Japanese SOX Law, the need for self-auditing and preserving evidence in the event of information leaks make e-mail archiving an important element of corporate risk management strategies. However, saving every message requires high-volume storage facilities that greatly increase operating costs for companies.

The Mail Archive Option helps to keep these costs down and gives companies a quick and effective means of centrally managing e-mail archives.

IIJ Mail Gateway Service Mail Archive Option Fees
----------------------------------------------------------------------
Initial Fee Free
----------------------------------------------------------------------
Basic Fee 400,000 yen (includes 10 GB of storage)
Monthly Fees --------------------------------------------------------
Additional fees 200,000 yen per additional 10 GB
----------------------------------------------------------------------
Storage capacity can be added in 10 GB increments on a one-year
contract up to 200 GB.

The above prices are for the Mail Archive Option only. The IIJ Mail
Gateway service requires a separate fee. The prices shown do not
include tax.

About IIJ

Founded in 1992, Internet Initiative Japan Inc. (IIJ, NASDAQ: IIJI, Tokyo Stock Exchange Mothers: 3774) is one of Japan's leading Internet-access and comprehensive network solutions providers. IIJ and its group of companies provide total network solutions that mainly cater to high-end corporate customers. The company's services include high-quality systems integration and security services, Internet access, hosting/housing, and content design. Moreover, the company has built one of the largest Internet backbone networks in Japan, and between Japan and the United States. IIJ was listed on NASDAQ in 1999 and on the Mothers market of Tokyo Stock Exchange in 2005. For more information about IIJ, visit the IIJ Web site at http://www.iij.ad.jp/en/.

The statements within this release contain forward-looking statements about our future plans that involve risk and uncertainty. These statements may differ materially from actual future events or results. Readers are referred to the documents furnished by Internet Initiative Japan Inc. with the SEC, specifically the most recent reports on Forms 20-F and 6-K, which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements.



Contact:
IIJ Corporate Communications
[phone]
[e-mail]
http://www.iij.ad.jp/

--------------------------------------------------------------------------------
Source: Internet Initiative Japan Inc.

[Golden Cross]

IIJ Ranks No. 1 in Customer Satisfaction Study Conducted by J.D. Power Asia Pacific
Tuesday February 7, 9:00 pm ET
IIJ outshines industry in 2005 Japan Network Service Provider Satisfaction Study


TOKYO--(BUSINESS WIRE)--Feb. 8, 2006--Internet Initiative Japan Inc. (IIJ, NASDAQ: IIJI, TSE Mothers: 3774), one of Japan's leading Internet access and comprehensive network solutions providers, today announced that the Company ranked No. 1 in J.D. Power Asia Pacific 2005 Japan Network Service Provider Satisfaction Study(SM).
ADVERTISEMENT


The study, which was conducted by J.D. Power Asia Pacific - a global marketing information firm - aims to measure customer satisfaction of telecommunication carriers that provide corporate network services. The study was conducted between August and September 2005 and targeted companies with 100 or more employees. The 2005 study was based on a total of 5,309 responses from 2,992 companies (up to two responses from one company).

IIJ scored much higher than the industry average in five of the six factors that influence total customer satisfaction, including "maintenance services", "global support", "network quality", "sales/account representatives" and "setup process". This gave IIJ the No. 1 position in the study.

As broadband becomes more prevalent and network businesses start to flourish, today's corporate networks and business systems are becoming more reliant on the Internet. At the same time, cyber attacks, viruses, spam, and other Internet threats have become more virulent and have increased the demand for reliable advanced network services among companies. With a foundation of advanced technologies that have been developed since the Company's inception, IIJ has worked to develop new technology and robust services while providing customers with reliable network solutions. IIJ will continue to provide advanced network environments for a broad range of users, and promote innovative Internet technology.

For details about the survey, please visit the J.D. Power website at http://www.jdpower.co.jp/jdp_e/.

[Golden Cross]

IIJ Group Participates in METI's RFID Pilot Project
Monday February 6, 9:10 pm ET
IIJ provided ``IIJ EPC Network Service'' and Network Infrastructure for East-Asian RFID Tag Test


TOKYO--(BUSINESS WIRE)--Feb. 7, 2006--Internet Initiative Japan Inc. (IIJ, NASDAQ: IIJI, Tokyo Stock Exchange Mothers: 3774), one of Japan's leading Internet-access and comprehensive network solutions providers, along with IIJ Technology Inc. (IIJ-Tech), its 72.1% owned subsidiary, today announced their participation in the Japan-China-Korea Supply Chain RFID (*1) Pilot Project, one of the RFID Pilot Projects that has been initiated by the Ministry of Economy, Trade, and Industry (METI).
ADVERTISEMENT


Fuji Xerox Co., Ltd. was volunteered to be a part of this seminal project in which an RFID platform was built based on the global standard set by EPCglobal Network(TM), and the effectiveness of the RFID tags were tested in a supply chain that crosses international borders. Fuji Xerox factories and warehouses in Japan, China, and Korea were linked with parts manufacturers--spanning a total of seven locations--to test the use of RFID tags in copier parts procurement, warehouse administration, import and export, production management, and other supply chain components. The tests will be completed by February 2006. The IIJ Group provided its EPCglobal Network-based RFID solution--IIJ EPC Network Service--and network infrastructure.

While overseas production is becoming the norm in the manufacturing industry, many companies are not able to get real-time information on stock-on-hand at locations in Japan, and there is a real need for management to improve production process management and to achieve efficient traceability. As a solution to these problems, many companies are pursing the effective use of RFID tags. In this test, EPC Systems (*2) in Japan, China, and Korea were linked with the cooperation of the participating companies to build and test an RFID platform that could become the global standard in supply-chain management. This platform enables manufacturers to monitor all points along the supply chain, even across international borders, and thus improve operational efficiency and traceability.

IIJ Group is a member of EPCglobal--an international standards organization for the use of RFID over networks--and through participation in numerous RFID field tests and technological development, IIJ has acquired expertise in building systems based on the EPCglobal Network standard. Leveraging its experience in the RFID sector and the technological savvy acquired as a leading Internet service provider, IIJ broke new ground with the launch of the IIJ EPC Network Service in October 2005. The IIJ Group will continue its pursuit of RFID technology and the development of related services.

(*1) RFID (Radio Frequency Identification): The general term for information exchange technology that uses electronic tags.

(*2) EPC System: A system for recording, referencing, and changing RFID information, such as electronic product codes, product attributes, and product history, over a network.

Note: The names of companies, organizations, and products used in this release are the registered trademarks of their respective companies.

Ministry of Economy, Trade, and Industry RFID Pilot Project
-----------------------------------------------------------

Project leader: Japan Business Machine and Information System
Industries Association

Project name: Japan-China-Korea Supply Chain RFID Pilot Project

Test period: December 2005 to February 2006

Participants: Internet Initiative Japan Inc.,
Mitsubishi Research Institute Inc.,
Fuji Xerox Co., Ltd.,
Mitsui Global Strategic Studies Institute,
Toppan Printing Co., Ltd.,
Nihon Unisys, Ltd.,
VeriSign Japan K.K., and others

Locations: Japan / Fuji Xerox Co., Ltd. Ebina Office, two locations
China / Two parts suppliers, Fuji Xerox of Shenzhen Ltd.
Korea / One parts supplier, Fuji Xerox Korea Co., Ltd.

Objective: Examine a model for the use of RFID tags in the
supply chain, and verify the following results

-- Improved effectiveness and efficiency in
production process management and stock management
in a global supply chain

-- Improve product traceability

Description: Examine a model that effectively uses RFID tags

-- Examine a model that uses RFID tags for product
procurement from domestic and foreign suppliers,
stock management, import/export, production
management, and other operations

Expected Results:

-- Optimum production system and more efficient
distribution in a global supply chain

-- Improved traceability (quality assurance)

-- Quick response to diverse customer requests
(improved customer service)

-- Stimulate trade through the construction of a
platform with strict adherence to international
standards


About IIJ

Founded in 1992, Internet Initiative Japan Inc. (IIJ, NASDAQ: IIJI, Tokyo Stock Exchange Mothers: 3774) is one of Japan's leading Internet-access and comprehensive network solutions providers. IIJ and its group of companies provide total network solutions that mainly cater to high-end corporate customers. The company's services include high-quality systems integration and security services, Internet access, hosting/housing, and content design. Moreover, the company has built one of the largest Internet backbone networks in Japan, and between Japan and the United States. IIJ was listed on NASDAQ in 1999 and on the Mothers market of Tokyo Stock Exchange in 2005. For more information about IIJ, visit the IIJ Web site at http://www.iij.ad.jp/en/.

About IIJ Technology Inc.

Head Office: Tokyo, Chiyoda Ward; President and COO: Takeshi Kikuchi; Capitalization: JPY 2,261,750,000.

IIJ Technology Inc. (IIJ-Tech) was established in November 1996 to carry on IIJ's superior network technology and forward vision to provide the system building and operation services that customers want. IIJ-Tech builds Internet business systems and corporate information systems, as well as builds and operates many primary business systems and systems for e-commerce, financial transactions, ISP/ICP, extranets, intranets, and ASPs. More information about IIJ-Tech is available at http://www.iij-tech.co.jp/.

The statements within this release contain forward-looking statements about our future plans that involve risk and uncertainty. These statements may differ materially from actual future events or results. Readers are referred to the documents furnished by Internet Initiative Japan Inc. with the SEC, specifically the most recent reports on Forms 20-F and 6-K, which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements.



Contact:
IIJ Group Media Relations Office
[phone]
[e-mail]
http://www.iij.ad.jp/

[darko02]

Hi Bluesky

have you kept up with iiji and if so
would really appreciate if you know someone that knows what is going on with the stock now?

[bbgold]

Hi Bluesky,
CWCI and IIJI might find some support here at their gap support. Otherwise it could be a move to lower SMA support, maybe. Should be good for a Bounce from here IMO. I have seen this longer term move to fill a gap and move higher before. If the gap support fails is when you need to stay out and wait for lower support to hold, JMHO though.
Good Luck Bluesky! :^)

[bbgold]

Morning Bluesky
Yes, otcbb stocks can be very risky. Bernard is indeed the otcbb King with his otcbbpulse.com website.

I would hate to think of the scenario if Japan and the US are not on the way to recovery.
Take Care Bluesky! :^)

[blueskywaves]

I generally don't touch bulletin board stocks, Bernard. Here's a snapshot of the Japanese economy.

James Flanigan: Japan's Two Economies Need to Travel One Path
Los Angeles Times
July 13, 2003

Once again, Japan is generating excitement in world markets.

International investors have poured $10 billion into Japanese stocks in the last month, and the Nikkei average of the shares of leading Japanese companies is up 16% so far this year. Exports from the country's powerful corporations are sweeping the globe.

All that is causing some experts to ask, if tentatively, whether the world's second largest economy finally is on its way to recovery after 12 years of recession and paralysis.

The answer, at least for now, is no. That's because there are essentially two Japanese economies, and only one of them is showing signs of life.

Most people know the dynamic Japan of prominent companies and dominance in international trade, and that global force is doing fine. "Japan's leading companies, Toyota, Canon, Nissan and many more, have cleaned up their balance sheets and are in the best shape in years," says Kenneth Courtis, Tokyo-based vice chairman of Goldman Sachs Asia who has watched Japan's economy for more than 20 years.

Indeed, Japan's surplus on trade and investment income is running this year at $150 billion on an annual basis, thanks to exports of NEC semiconductors and Honda cars, as the Ministry of Finance noted last week in Tokyo.

But the Japanese economy that looks outward seems almost unrelated to its troubled cousin, the home-front economy of 127 million people that accounts for 85% of the nation's gross domestic product of $4 trillion.

For this economy, the statistics are grim. Japan's banks are burdened by more than $900 billion of bad loans. It's an enormous total that has built up over the last decade as these institutions have rolled over debts of client companies rather than compelled the companies to repay the debts or reorganize their operations. The rollovers were done at the behest of the Japanese government in the interest of stability.

But the strategy backfired. In fact, rolling over bad loans held back new lending by the banks and led to stagnation.

Despite the Nikkei's recent swell, stock prices in Japan today are roughly one-fourth of what they were a dozen years ago. Unemployment has been rising steadily, even though layoffs haven't been anywhere close to the scale of those in the U.S. (In Japan, many workers are simply kept on the payrolls, at relatively low wages and often with little to do.) Personal incomes and living standards have plummeted. The homeless are dramatically evident in Tokyo's parks.

The stalled internal economy has brought on deflation, with prices falling 1% to 3% and more a year. Deflation makes loans and mortgages harder to repay and property sales and transfers difficult, further stifling business activity.

Stalled Stimulus Plans

To spur the distressed economy, the government has launched numerous stimulus plans, mainly pushing money into public works, which favors the construction industry — a major backer of the Liberal Democratic Party that has ruled Japan since the end of World War II.

Government-funded initiatives have led to bizarre white elephant projects, such as little-used four-lane highways running near seasides and underused airports in isolated parts of the country.

Some funds for these endeavors have come from deposits made by Japanese citizens in Postal Savings Accounts, which the government invests. That was the great source of capital that helped rebuild Japanese industry in the decades after World War II.

But now, with capital tied up in make-work projects and in government bonds in a stalled economy, the accounts have failed to earn sufficient return to finance people's retirements. Investment in Japanese government bonds has earned only 1.65% a year over the last decade, a rate that has left Japan's pension system severely underfunded.

With the global side of the Japanese economy doing so well, does it matter that, back home, the economy is such a mess?

It does. Japan can't afford a weak and isolated domestic economy — and the United States can't afford for Japan to have one either. Japan is a leading U.S. trading partner and lender-investor, with the Japanese government holding an estimated $500 billion in U.S. Treasury notes and bonds.

Japan literally holds a mortgage on the U.S. economy.

A Shift Toward Reform

Change is necessary, and it may well be on its way. "Japan has approached financial collapse in the last year," says economist Adam Posen of Washington's Institute for International Economics. "It has dodged the bullet, but the crisis may have swung the consensus toward reform."

Reform will come in the restructuring of domestic institutions to make them behave like Japan's successful international companies.

New ways are being tried at a couple of banks, notably Shinsei Bank (the name means "new birth") that was created out of the failed, government-owned Long-Term Credit Bank three years ago.

Shinsei devotes half of its business to underwriting bond and stock issues for corporations, like a U.S. investment bank.

"Japanese companies are reducing their dependence on bank borrowing and raising money through public markets," explains Shinsei's chief executive, Masamoto Yashiro. "Japan is changing. That's why international investment is coming in."

But, he cautions, this is still Japan. Nothing will happen quickly. "The reform will take two to three years."

Whether the two Japans succeed or fail, the United States and much of the rest of the world will be profoundly affected.

[bbgold]

Thanks for the update Bluesky
I was wondering why you had not posted on the board but I can see now you are busy following a lot of other stocks. Just be careful if IIJI and CWCI start to decline as they both followed each other Up they might also follow each other Down, maybe. Make sure and do the conversion from Yen into Dollars. There was one company I was looking at that had revenues in the Millions. That was until I read the fine print and it was in an obscure denomination that was near 1000:1 to the dollar.

Have you looked at any otcbb stocks like DBBD or CBBD? I would like to hear your opinion on them. I do not hold any shares but have been hearing a lot about them.

Keep Rocking and be Safe Bluesky! Sincerely, Bob :^)

[blueskywaves]

IIJI owns 38% of CWCI. S&P shows IIJI as having 44.96M ADS outstanding and CWCI as having 10.04M ADS outstanding. These two stocks started to trade more closely together after IIJI nearly doubled in one day a few weeks ago as profits from the scorching hot Chinese portals started to recycle into secondary and tertiary players.

There are only 17 Japanese companies whose ADRs are listed on Nasdaq. IIJI and CWCI are really the only two broadband pure plays. By way of contrast, I follow more than 50 Chinese plays most of which are regularly being launched into the stratosphere by sheer momentum alone!

These Japanese companies tend to be more inscrutable than the Chinese companies, but IIJI and CWCI are somewhat unique because they bypassed listing on the Japanese exchanges and went straight for NASDAQ listing. There just aren't that many ways to get exposed to Japanese broadband without buying directly on the Japanese exchanges. The average Japanese household, for example, has a telecom (wireless/wireline) budget of around $200 a month, with less than 40% devoted to wireless!!

Once the powerful owners of these two companies clarify their commitments to IIJI and CWCI's capex programs then these companies's stocks will have better access to global capital and will have even higher demand. US institutions, in particular, are seriously underweight Japan.

From IIJI's 6F filing on 6/10/2003.

The Company (IIJI) has incurred shareholders' capital deficiency of 452,748 thousand yen as of the end of March, 2003 as the result of posting of a net loss of 13,765,686 thousand yen for this fiscal year.

Crosswave, 37.85% of which shares are owned by the Company, posted a large operating loss of 11,261,479 thousand yen for the previous fiscal year and 12,628,514 thousand yen for this fiscal year and its operating cash flow has significantly gone negative. Therefore, substantial doubt about the Company's ability to continue as a going concern exists.

In order to resolve such situation, the Company is planning the issuance of shares through third party allocation in an amount of 3,512,880 thousand yen, of which payment shall be made on June 6, 2003. Crosswave is scheduled to receive from the Company, Toyota Motor Corporation and Sony Corporation, its major shareholders, an advance of 3,100,000 thousand yen by the end of May, 2003 and 1,200,000 thousand yen by the end of June, 2003, or 4,300,000 thousand yen in total.

It is also in the coordination process with the Lenders as for when to receive the advance in an amount of 5,000,000 thousand yen which is the outstanding amount of the long-term facility pursuant to the Syndicated Loan Agreement by and between Crosswave and the Lenders as of May 21, 2002, and it is in the negotiation process with the major shareholders, etc. as for the business plan, including the funding thereafter.

The financial statements and schedules are created based upon the Company continuing as a going concern and they do not reflect any effect of aforementioned substantial doubt.

http://www.sec.gov/Archives/edgar/data/1090633/000115752303002374/a4412381.txt

[bbgold]

Hi Beelzeburp,
blueskywaves started the board but never posted on it. I am not sure if IIJI will keep moving from here or not. I would anticipate a pullback much as it did last year. I was looking at the company profile and it was showing the O/S at 22,000 shares? If that is true then the stock could still have some potential, although it has sold off in the past. I would anticipate the stock to continue to be volatile and would look for support around $10 and $6-8 if it fails at 10. Sorry that you did not just do a Half sale and were riding some Free shares here.
At least you caught some Kaching from it.
Good Luck Beezle! :^)

[Burpzilla]

Hola, Dilleet.

I can't believe the IIJI boards aren't busier, considering what the stock's been doing.

[dilleet]

Been watching this one for awhile, bought in around 3.70 with my realised profits from SINA. I had bought SINA at an average of 1.65 with a target of 15 and am amazed it is still soaring.
I don't know much about the key web players in Japan, I have read Softbank is probably the leader, but this Internet Initiative seems to to be a viable player and if there truly is a turnaround in Japan may well be worth looking at.
Glad to see that someone started this thread here, cannot even read the Yahoo boards and Raging Bull is disintegrating with bad technology and a grwoing lunatic fringe

[Burpzilla]

Thanks for starting this board, bbgold. This stock has been raging lately. I made money in the 3-4 range but bailed too early. Looking to get back in, in the single digits.

[bbgold]

A repeat of last year?
I am wondering it IIJI will see the same Spike and Decline here as last year? How much upside is left? Looks like an Awesome Kaching for everyone holding. Time to cash out at least Half and hold only Free shares? :^)