Does the Stock Price Also Rise When There’s a Wedding?…Japanese Company Whose Stock Rises When Otani Rises

Otani Industries in Japan with the Same Name
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WBC Popularity Spurs Stock Market Interest
Otani-Themed Stocks Unrelated to Otani
Expectations Rise Again if He Gets Married

Shohei Ohtani and his wife Mamiko Tanaka [Image source=LA Dodgers Facebook]

On February 29, after Shohei Ohtani, the baseball star from Japan, announced his marriage, the stock price of a certain company rose in the Japanese stock market on March 1. This company’s stock price rises every time Ohtani gains attention. The company’s name is Ohtani Kogyo. Although it has no relation to Ohtani, it is a representative company linked as an Ohtani-themed stock. On March 1, when the whole nation was excited about Ohtani’s marriage, Ohtani Kogyo’s stock price surged sharply from the previous closing price of 8,710 yen to 10,000 yen, a jump of 1,290 yen.

This company’s average stock price remained in the 4,000 yen range during the first half of 2019. Then, on December 16, 2019, it suddenly soared to 13,050 yen. There was much speculation in the market about the reason for the rise, but it is interpreted that from this point on, it became an Ohtani-themed stock. Ohtani Kogyo gained attention when Ohtani performed spectacularly at the World Baseball Classic (WBC) last March, pushing the stock price above 10,000 yen. After the WBC ended, the price dropped to the 6,000 yen range, but by the end of June, when Ohtani hit 15 home runs in a month, it recovered to 10,000 yen again. Afterward, it remained quiet until the marriage announcement stirred it up once more.

Panoramic view of Toyama Plant and Kanuma Plant of Otani Kogyo, Japan [Photo by Otani Kogyo]

Ohtani Kogyo is a company rooted in a businessman with the surname Ohtani. Founded in 1946 in the city of Izumi, Toyama Prefecture, it is a manufacturer specializing in electrical and communication aerial hardware, transmission towers, and architectural hardware. The company is headquartered in Tokyo and has factories in Toyama and Kanuma. The current chairman is Kazuhiko Ohtani, who is also the owner of the famous Japanese hotel chain New Otani Hotels. The company has no relation to Ohtani, who is from Iwate Prefecture.

Its annual sales amount to 7.84 billion yen (approximately 70 billion Korean won), operating profit is 365 million yen (about 3.3 billion Korean won), and it employs around 184 people, making it a small to medium-sized enterprise. Among Japanese stock investors, opinions are divided, with some saying, "Investing in a company unrelated to baseball player Ohtani requires caution," while others argue, "If Ohtani holds a wedding or performs well, the stock price will rise again, so shouldn’t we buy?"