Stockchase Opinions

David Driscoll Canon Inc. CAJ-N BUY ON WEAKNESS Nov 09, 2006

Very conservative Japanese blue chip that pays a nice decent dividend. Growth is still very positive.
$53.000

Stock price when the opinion was issued

electrical electronic
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TOP PICK
A great company. 16 times earnings. Well run, world leading company.
HOLD
Have been able to consistently commercialize their R & D, which is very hard to do. The weak Yen has also benefited them, because the bulk of their sales is outside of Japan.
WEAK BUY
A leader. 70% of sales sold outside of Japan, strengthening Yen not good for business. In a very strong position. Strong in SLR cameras which are popular.
HOLD

Unfortunately they have had a tough time. Camera division is doing extremely well. Coming out with new cameras. He is scrutinizing it hard. 4.2% dividend is safe. Strong balance sheet. If camera division takes a turn to the worse he would sell.

TOP PICK

#5 in new US patents. Patent for nanoimprint lithography, stamping designs on silicon wafers, cheaper than other methods. 12-month price target of $36.50, decent runway. Buy it in Japan or as an ADR. Yield is 3.4%.

(Analysts’ price target is $27.00)