Ibiden (4062.T)

(A Top Pick Dec 6/07. Down 79%.) Manufactures automobile and semiconductor products. 2 products you don't want to be in these days. Having a very difficult time right now. No debt.

(Top pick, February 28, 2007. Down 35%) The growth in their market was slower than hoped. Their product (diesel filters) will be required in Europe in the next while. This is a good company. Will do well in the next 3 years.

Manufacture diesel particulate filters. Under the Euro5 regulations, which start in 2008, by 2010 all passenger vehicles and commercial vehicles will have to have particulate filters. This company has 70% market share and 30% operating margins.

He's a big bull on diesel. Great mileage on his European Saube (800 km on a tank). This company makes the filters that are used to remove the black smoke from the exhaust. European Union is putting in environmental requirements for this, North America may get it. 50% of European market, 3% of North American market, it's going to grow. 30% upside over one year, and should double over 2 years.

2/3 is manufacturing ceramic coatings for semiconductors and the rest is diesel particulate filters. Latter is growing extremely rapidly. Margins have grown from 14% in 2005 to 21% this year and should reach 25% in 2007.