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Japanese Stocks Advance In Early Trading

 
V. Phani Kumar
MarketWatch Pulse
     

    HONG KONG -- Japanese stocks advanced early Thursday on banks such as Mitsubishi UFJ Financial Group as investors awaited the U.S. Senate's vote on the $700 billion rescue plan for financial markets. But automakers like Toyota Motor Corp. fell after their U.S. sales slumped in September. The Nikkei 225 Average gained 0.6% to 11,438.66 and the Topix index advanced 0.4% to 1,105.95. Australia's S&P/ASX 200 index was little changed at 4,796.30, after moving in either direction, and South Korea's Kospi rose 0.9% to 1,452.39, while New Zealand's NZX 50 index climbed 1.1% to 3,223.56.

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    Same-Store Sales

    Most folks judge the health of a business by the revenue that comes in through sales. But not all revenue is equal. Companies can grow their sales by buying other companies, which means you don't get a clear view of how the real sales trends are moving.

    So, many analysts, particularly those who look at retail, try to gauge what¿s known as "organic" growth, by looking at same-store sales. These are sales only at outlets open more than a year, so the metric can exclude any sales jump that comes from opening new locations. Retailers release same-store sales (which are frequently called "comps" since they're a true comparison from the previous period) every month.

    Retail, incidentally, isn't the only industry to look at same-store sales. Hospital companies, also use the metric, to gauge how existing hospitals are performing compared to ones they just built or acquired.