Fukuda Denshi (JP:6960) - Highly Profitable Growth Company at Bargain- Basement Price

Introduction

Fukuda Denshi is a leading Japanese medical device manufacturer. It offers a wide range of medical equipment products like, among others, defibrillators, patient monitoring, vascular screening -, ultrasound -, stress test - and respiratory systems. In addition, the company provides therapeutic instruments for sleep apnea syndrome and sells AED (automated external defibrillators).

Lately, the company has successfully expanded into the rental medical equipment for home care, including oxygen concentrator devices, which is starting to contribute significantly to the bottom line.

The Company holds high market share within Japan in several business segments that show significant growth, a duopolistic/ oligopolistic market structure and a secular tailwind due to the aging population.

The absence of promotional behavior (limited IR), low trading volume of the stock and no analyst coverage has created a stupendous value dislocation in absolute and relative terms seldom seen in my career as a security analyst and investor.

Basically, the company is a long- term compounder, trading at double liquidation value, spitting out an incredible amount of (growing) free cash- flow while investing significantly in future growth that is totally lacking attention of the Buffett style investors.

Nitto Kohki (JP:6151) - Decent Compounder Trading around Liquidation Value

Company Overview

Nitto Kohki, founded in 1956 and headquartered in Tokyo, Japan is a well established Japanese manufacturer of components, tools and machines. Nitto Kohki's products fulfill vital roles in fields ranging from applications in the construction industry, automotive industry, medical device manufacturing and high-tech engineering.

Its mainstay products are quick connecting couplings to join fluid pipes. Customers are mainly found in the field of semiconductors manufacturing and housing construction.

Products of the machine tool segment are mainly steel drilling machines and die machining tools to produce automobiles.

In the segment pumping systems, the company mainly offers linear motor driven pumps with a wide range of applications. Among others in medical equipment and for wastewater treatment systems.

The company has sales subsidiaries in the U.S, U.K, Germany, Shanghai and Australia.

The Match Tycoon Ivar Kreuger: Genius or Crook?

Introduction

It was Saturday the 12th of March 1932, a sunny but chilly early spring day. Andrè Kostolany, the German/ Hungarian speculator, found himself in a tide of compassionate French citizens on the magnificent Champs- Elysée in Paris, where they had gathered in huge numbers bidding farewell to their late president Aristide Briand. Kostolany, who was more of a practical than sentimental personality, took the opportunity to make a detour to his stockbroker, located just around the corner, to check the ticker.

The stock market was open on Saturdays, albeit only for two hours and trading was usually sluggish. It would not be different that specific day, but nevertheless Kostolany would be up for a huge surprise. One company immediately caught his eye. Kreuger & Toll Inc., the company of the famous Swedish financier and match manufacturer Ivar Kreuger. The stock was heavily traded but, somehow mysteriously, the issue would barely budge.

Kostolany immediately figured out the obvious. Banks, on behalf of interested parties, were supporting the share price. It would cost them dearly in the not-too-distant-future and make Kostolany, (who was short the stock) a little fortune. Because what neither the banks, nor Kostolany, were aware of was Ivar Kreuger had met his maker. Lying on the canopy bed in his mansion with a 9mm bullet in his chest. 

Apparently, not all were as uninformed. Among those who knew, was a senior officer from the Police Department. He was lunching with his daughter’s fiancé, an American journalist, and let him in on the little secret, noting that: “I'm sure you will know how to get some benefit from the News. But promise me that you won't pass it on until evening!”

Yodogawa Steel Works (JP:5451): A J- Net Beauty with Loads of Hidden Assets

Company overview

Yodogawa Steel Works, Ltd. is an independent Japanese steelmaker located in Osaka. It mainly provides surface treated steel sheet. It is particularly strong in color steel sheet.

The Company operates in four business segments. The Steel Sheets-related segment manufactures and sells coated steel sheets, galvanized steel sheets and cold-rolled steel products. The Roll segment is engaged in the manufacture and sale of steel rolls, non-ferrous rolls, etc. The grating segment is engaged in the manufacture and sale of gratings. The Real Estate segment is engaged in the leasing and sale of real estate.

Most of its products are provided to corporate customers, such as building contractors and consumer electronics maker, but the company also handles household use storerooms, carports, and photovoltaic power generation, among other things, for general consumers.

It runs plants in Osaka, Kure, Ichikawa, Fukai and Izumiotsu. It started steel sheet sales through own sales offices. It also has a large overseas plant in Taiwan. The joint venture subsidiary, which operates the Taiwanese plant, is listed on the Taiwan Stock exchange. The company also set up local firms in Taiwan and China to produce and sell surface treated steel sheet.

Just for the Record - Sell Ryoyo Electro (JP:8068)

Sold today Ryoyo Electro for 2’683 Yen per share. A stock I mentioned on my blog roughly 8 years ago at 944 yen.

By than Ryoyo was a debt- free deep value stock with enormous assets in form of cash, receivables, inventory and liquid investments that traded below its liquidation value.

The percentage gain (without dividends) is a 184 %. Including dividends received (before Taxes), which were 420 Yen per share, the percentage gain comes in at 229%.

A more detailed analysis on the rational to buy into the stock and the reason for selling out is coming up soon!

Fukuda Denshi (JP:6960): The Three Bagger Stock That Still Is a Bargain

Introduction

Fukuda Denshi was first presented on the blog in 2012. Since mentioning the company the stock price has more than trippled.

In this post I will make the case that Fukuda Denshi is a wonderful company that, irrespectively of the significant share price appreciation,  is still a bargain issue.

Shinko Shoji (JP:8141) - A J-Net Beauty

The company overview and the section covering risk factors are partially based on an excellent analysis of Shinko Shoji done by TobiB from the blog  Preis und Wert.

Company Overview

Shinko Shoji was founded in 1953 and is headquartered in Tokyo, Japan. At its beginning the company engaged mainly in trading electronic motors and transformers.

Osaka Gas (JP:9532) - Nice in Disguise

Fortunately, in good accounting literature one is often advised to scrutinize a company’s quality of earning. A quality of earning break down adjust for the fact that accounting profits of a company seldom match economic profits (the true profits). But it is the economic profit that the astute security analyst should be most interested in.

Ryoyo Electro (JP:8068) - Still a J-Net

Company and Business Overview

Ryoyo Electro Corporation engages in the distribution of semiconductors, computer systems and peripherals, and electronic devices mainly in Japan but also internationally. Therefore Ryoyo Electro is a classical trading company that is not engaged in the production of electronic devices. It was founded in 1961, is headquartered in Tokyo, Japan and the stock is listed on the First Section of the Tokyo Stock Exchange (TSE).

On why I sold Astellas Pharma

"Behave like a good christian on the stock market. Take when everyone else is giving and give when everyone else is taking." (André Kostolany)

On the Flaw of Price Ratios - Namco Bandai vs. Capcom

This is a valuation follow up on Namco Bandai, a stock I presented last year on this blog.

The Beast - Kawasumi Laboratories (JP:7703)

Company Overview

Kawasumi Laboratories Inc. engages in the development of medical devices and pharmaceuticals primarily in Japan and Thailand. Its products comprise disposable medical products and liquid pharmaceuticals used for blood purifying in minimally invasive therapies. It utilizes plastic molding and processing technologies to produce and supply various medical devices that belong to categories such as Hemodialysis, Blood Bank, Cardiovascular Systems and Infusion Therapy. It operates in two main business segments; Blood Transfusion / Vascular Access and Dialysis/ Therapeutic Apheresis. Kawasumi Laboratories Inc. was founded in 1954 and is headquartered in Tokyo, Japan.

Fingerübung - Co-Cos (JP:3599)

And here we go. Another japanese net-net stock.

Co-Cos hasn't got an english internetpage. I have to rely on data from Businessweek and  MSN Money. 2012 numbers out on its internetpage (japanese).