Futaba Corp (6986-JP)

(A Top Pick November 28, 2017. Down 13%). This company trades for less than working capital. You get the whole company for free. Japanese small caps have been hurt over the past 6 months but as trade frictions subside, valuation will become more important again. Futuba makes industrial equipment, such as VFD and OLED displays and touch panels. This is a growth industry and he expects Futaba to do well over the long term.

Touch panel displays and robots. Another one of these great Japanese companies that does not sell to consumers, but sells stuff that goes into manufacturing equipment. Half the share price is in cash and three quarters is in working capital, so you are paying very little for this 70-year old business. Has gone through a transition year with a couple of write-downs in the last couple of years, but returning to profitability now. Thinks the stock is worth double its share price. Dividend yield of 1.2%. (Analysts’ price target is ¥2,200.00.)

(A Top Pick Oct 7/13. Up 38.45%.) Component manufacturer. This is one of those great Japanese value investments, and is still cheap. Trading for less than its full working capital. He can see 20% earnings growth a year for the next couple of years.

A Japanese company that is still, after this big run, trading at less than its cash. So investors buy the cash at a discount and get the entire company for free. Machine manufacturer.