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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Jurgis Bekepuris who wrote (42467)	4/29/2011 2:12:09 AM
From: Spekulatius	Read Replies (2) \| Respond to of 78596

re Japanese - >>So although we can't say that all Japanese companies are value traps with shareholder-hostile managements, I wonder if the cheap ones actually are.<< Didn't we have a discussion about efficient markets not long ago. The companies like Shimano or Keyence are known leaders in their field. Everybody who rides a bike and switches gears every once in a while ought to know Shimano. Keyence is a leader in small sensors, particular proximity sensors. Tsurumi pumps (not a field that I am very familiar with but I did do some research) are well known and compete with industry leaders like Gould (part of ITT). Wholesalers in the US carry them. it's of course a much smaller business than the one's I mentioned, only 9000 shares trades this Thursday for example. But still, I consider it pretty good for a 200M$ (equivalent) market cap company to have worldwide distribution in a niche market. Their ROE is abysmal (~4%) but if you strip out the cash and the LT investment (shares in other Japanese companies), which are not necessary to run the business and contribute very little to net earnings, then he ROE goes to ~7%, still bad but not abysmal any more. Same applies to many other companies.