Tuesday, August 28, 2012

Japanese Companies | Panasonic Carbon ?

Japanese companies are poor pay masters for employees and even worse care takers for investors.

I had identified Ricoh as a potential candidate few years back with ambitious plans for India, but saw through their intentions as they spawned privately listed companies in India. Not far later they have recently decided to de-list.

Investors are victims of their make-believe, looking for a Sylvester Stallone in mirror, where none exists, even spending a million on the mirror and make up. Just because consumer stocks are flavour of the day, does not imply every company in the industry would reward from Kanchan International Ltd to Panasonic Applicances Ltd.

Barring a few exceptions in mainstream stocks easy returns can be made in stocks which do not feature in any news, article or magazine.

Sorry for the arrogance but I don't even like playing for 30% gain or loss. It has to be a minimum doubler, which means I have to lose out on many opportunities of lesser quantum of gain, even with higher certainty. Once such possible opportunity is Panasonic Carbon  India Ltd which is debt free, with 54 crores in Bank Account fetching 5 crores in annual interest. Their products have been well accepted in export market and this year the turnover should be 40% greater than previous year. Markets will be fooled into assuming this growth as 'new normal' and propel price upwards of 160Rs from 130Rs today. 7 Rs dividend goes a step further in captivating a value investor, should one dive in ?

Disclosure: Not invested