Yamaha Corp. (7951.HK)

(A Top Pick Jun 27/24, Down 22%)

They had disappointing earnings, because China has been weak and now have excess inventory. Nothing is going well, except they continue to generate free cash flow and buy back a whack of shares. When they get rid of that excess, the company should be well-positioned. 

Music, not motors. Represents the new Japan in investor relations. Buys back stock every year, still sitting with net cash. Stock's down due to China slowdown, and yen is down sharply. Returning to growth, which has been double digits in the past. (Price target in yen.) Yield is 1.9%.

Leading market share in audio equipment. A bulletproof company, buy when the price is down.

(Analysts’ price target is $3933.33)

(A Top Pick Jun 26/19, Up 4%) This is the music business, not the motorbikes. It has held up very well. He expects earnings to rebound a lot in 2021. A core holding. It's very undervalued. Japan as a whole has bounced back and is bifurcated like other markets.

They make musical instruments, gaining market share and coming out with a slew of new products. They have a great presence in China. Has no debt and a lot of cash. They've been buying back shares and raising their dividend agressively. Earnings and revenues are up. Price target: Yen 5957.14 (Analysts’ price target is $5957.14)

Great maker of piano, keyboards and A/V equipment. No debt. A third of the price is their holding in Yamaha motors. A third is cash. Global business that is incredibly cheap.