Lorne Steinberg
Hosiden Corp
6804-JP
PAST TOP PICK
Jul 22, 2020
(A Top Pick Aug 15/19, Down 2%) He still owns this. They are an electronic manufacturer. The stock has recovered well and trades still at a single-digit multiple and below book value. He is absolutely sticking with it.
Another one of those crazy cheap Japanese electronic companies that you are buying for a discount to the net cash they are holding after subtracting all liabilities and getting the entire company for free. March 2015 versus March 2014. He is looking for earnings growth in the area of 30%-50% range.
A net cash story. How can you not like a company where you are getting, for a fraction, an underlying company? This one offers huge upside. Earnings are poised to take off again.
It is trading for less than tangible book value with a mass of cash on the balance sheet. It is worth double the share price. (Analysts’ target: 2100).
(A Top Pick May 07/18, Down 23%) They make electronics. Japanese small-caps got pounded at the end of 2018, but have rebounded sharply, outpacing American stocks. It's trading to a huge discount now, but it's had a wild ride in the past year.
(A Top Pick May 07/18, Down 8%) A Japanese electronics company. It took a downdraft in late 2018, but its valuation is insane with no debt. You're buying the company for less than working capital. It's worth more than double the current share price. It trades at 7x earnings with a solid dividend.
It is trading for less than cash and receivables less all liabilities. You get the whole business for free. They are buying back shares and raising the dividend. He thinks it is worth double what it trades at. There is minimal downside. (Analysts’ price target is $1150.00)