Canon is one of the world’s leading designers, manufacturers and marketers of office equipment (office, personal and full color copying machines, office and network digital multifunction devices, laser and inkjet printers, scanners), cameras (digital and film cameras, digital video camcorders and camera accessories) and optical products (semiconductor production equipment, broadcasting lenses, medical equipment and electronic components). The company has grown profits and dividends at a 17%+ rate over the last ten years earning an 11-15% return on equity. The company has suffered from weak demand and competitive pricing pressures in the latest slowdown, but management’s ongoing effort to achieve the number one position in each of its core businesses should produce above average results over the long term. Its strategy is to focus on:
(1) maintain a technological edge over its competitors,
(2) maintain state of the art production facilities,
(3) pursue an aggressive cost cutting program,
Statistical Summary
Stock Dividend Payout # Increases
Yield Growth Rate Ratio Since 1999
CAJ 2.9% 6% 42% 9
Ind Ave 1.0 3 25 NA
Debt/ EPS Down Net Value Line
Equity ROE Since 1999 Margin Rating
CAJ 1% 11% 3 8% A
Ind Ave 17 9 NA 4 NA
Chart
Note: While up off its March low, CAJ has struggled to sustain an up trend. It briefly penetrated then retreated from its November 2008 trading high (green line) and it has never approached the down trend off its June 2007 high (red line). The straight blue line is the lower boundary of a trading range dating back to 2003. The wiggly blue line is on balance volume.
Canon is rated A by Value Line, has a solid balance sheet (1% debt), and its stock yields 2.9%.
http://finance.yahoo.com/q?s=CAJ
12/09
News on Stocks in Our Portfolios
A write up on Accenture (Aggressive Growth Portfolio):
http://seekingalpha.com/article/175669-accenture-sees-recovery-in-h210-time-for-dip-buying
Disclaimer
Steven J. Cook is president of strategic-stock-investments, LLC, parent of CJS Research, a registered investment advisor. All material presented herein is believed to be reliable but we cannot attest to its accuracy. Investment recommendations may change and readers are urged to check with their investment counselors before making any investment decisions.
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Posted
12-01-2009 8:42 AM
by
Steve Cook