While Howa Machinery (6203), Japan’s largest small firearms manufacturer, has had its index weight lifted within Topix on Oct 5, the shares have jumped another 100% since reporting on it last week. Will the JPX issue a speeding ticket to investigate a 100% rise in a stock that has already risen 100% in the last 12 months on zero positive news flow? The answer is no. While ETF inclusion and index buying of an illiquid stock can explain away some of the rise, the fundamentals don’t match the performance. Up another 10% today.