Opinions
Lorne Steinberg
Hirano Tecseed
6245-JP
PAST TOP PICK
Apr 30, 2013
Stock price when the opinion was issued
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Osaka exchange. Very R&D focused. Big in laminating and coating technologies. Largest #1 market share globally in coating for lithium iodide batteries, which are used in electric cars, which is a huge growth area. $80 million market cap and half their business is outside Japan and growing rapidly. 3% dividend yield. Trading at 7X earnings. Have $120 million in cash with no debt.
This is one of those Japanese gems that is actually trading for its cash. They have no debt. You are getting a profitable dividend paying company for free. They are in a great engineering machinery niche, coating laminating equipment. They are one of the best players in the world in this business. 3% dividend.
(A Top Pick Sept 11/12. Up 127.4%.) A little niche player in the coatings and laminating business. It was trading so far below intrinsic value and below its net working capital, so you were buying the entire business for free. Still trading for about 70% of tangible BV so there is still huge upside, at least another 50%-75% as earnings are still growing at 25%-30%.