Opinions
Lorne Steinberg
Aida Engineering
6118-JP
TOP PICK
Oct 02, 2018
Stock price when the opinion was issued
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This is huge in industrial automation. One of the global themes is robotics and automation. The Japanese are probably the global leaders in that area. The company has been around for over 60 years. One of these great Japanese companies where a good chunk of the market cap is simply cash and working capital. The dividend has doubled over the last 5 years. Still throwing off free cash flow. A compelling growth story. Dividend yield of 2.96%. (Analysts’ price target is ¥940.)
(A Top Pick Nov 24/16. Up 55.95%.) The Japanese market remains compellingly cheap. This one is a global business that makes manufacturing equipment for the auto sector and others. There are thousands of great Japanese companies that you never hear about, because they are either making electrical components that are inside all kinds of different devices, or they make manufacturing equipment.
This is another of the great Japanese companies. 75-year old track record. More than half the share price is in net cash. It is a global leader in metal form press equipment and robotics for the auto sector and electronics sector. Japan leads the world in industrial robotics. His estimated fair value for Aida is more than double the current share price. Japan should benefit from the recent trade agreement, but its market has been out of favour for decades. Large firms are beginning to recommend Japan again. Cycles don’t last forever and it is better to buy when a sector is cheap. Yield 2.9%. (Analysts’ price target ¥1240.00 )