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Strategies & Market Trends : JAPAN-Nikkei-Time to go back up? -- Ignore unavailable to you. Want to Upgrade?

To: borb who wrote (3424)	8/19/2003 2:54:51 PM
From: Crossy	Respond to of 3902

Borb, yes - Price to sales cannot be massaged by extraordinary items as Price to earnings. Top line items (Sales and EBITDA) are usually more "leading" indicators than bottom line indicators. Profit is a "residual" figure. But beware, PSR ratio is "industry specific". Usually you find good picks IN an industry by tabulating Price/Sales ratios and hunting down the low PSR stocks.. another angle: look at turnarounds. first the stocks have no earnings, then just a tiny amount. Those stocks have NEGASTIVE PE ratios or abnormal high ones, yet they are often the best investments. I avoid the PE mania by looking at Gross margin, it's trends and Price/Sales. Debt level of course also needs to be adressed but this is usually a secondary figure, with the exception of wildly leveraged situations.. rgrds CROSSY

To: borb who wrote (3424)	8/19/2003 5:57:42 PM
From: Crossy	Read Replies (1) \| Respond to of 3902

re : 6844.J (Shindengen Electric) - 333 Yen I did some scanning yesterday of Japan's semiconductor makers and found Shindengen Electric Manufacturing, ticker is 6844.J (Tokyo), website: shindengen.co.jp - stock is trading at 333 Yen.. Valuation wise it's more than cheap, unlike the many others - just trading at a Price/Sales ratio of 0.30. Expected PE is around 30 but that the high PE ratio is typical for turnaround stories. After a period of losses, the company is expeced to post earnings of 10-13 Yen in 2003 and 2004 - especially the 2004 figure looks rather lowballed to me. Just one broker analyst follows it and has a "hold" rating on it. It took almost a year on NIEC for the japanese brokers to find out about it's value. Fundamentals for Shindengen are here : biz.yahoo.co.jp They are a prime maker of power semiconductors, 50% of their business is power devices : semiconductors, rectifiers, fred's, sbgd, power modules, power ics - they seem poised to mimic NIEC's (competitor - 6974.J) succesful up-market strategy. They are going to enter the "automotive" market - right now they are supplying primarily to motorcycle makers there (inside the "automotive" segment) but that is about to change.. They seem to feature quite a diverse product offering among power semiconductor devices : shindengen.co.jp What attracts me here is that it's 50% power devices, almost a "pure play" in power semis.. (the other nearly pure plays are Nihon Inter and Origin Electric) rgrds CROSSY