Canon (CAJ)

• Article
• Discussion
• Edit
• History
• Bookmark

See all Bulls Reasons Bulls: Reasons To Buy Undervalued due to strong yen appreciation 100% agree Undervalued due to strong yen appreciation Canon is an excellent company and long-term investment. In anticipation of a big purchase later this year, I am liquidating part of my stock portfolio and as I mull over which stocks to sell, Canon (CAJ) and Nokia (yes I am still holding on to it since I featured it in the October... read more View or Edit Reason 1 votes 100% agree Bears: Reasons To Sell Feeling Bearish? Be the first to explain why this would make a poor investment Send the authors a comment or suggestion Be the first to make a suggestion See All Suggestions

Top Contributors Jc Maco Asif Suria Related Articles Hewlett-Packard Company (HPQ) Xerox (XRX) Sony (SNE) The Dollar

Canon develops, manufactures and sells a wide lineup of copying machines, printers, cameras, optical products, industrial equipment and other products to meet a diverse range of customer needs. The Company has developed its business activities on a global scale. Canon is a registered trademark in over 180 countries and regions around the world. Canon first began implementing its Excellent Global Corporation Plan in 1996, and has since delivered a series of strong performances. In fiscal 2006, the inaugural year of Phase III of the Plan, Canon achieved record earnings and marked its seventh consecutive year of growth in both sales and net income. With the spread of globalization and broadband networks, Canon stands poised to lead a new era in digital imaging and highly effective communication. In addition to strengthening business results for enhanced corporate value, the Company engages in a number of environmental and social contribution activities and focuses on fulfilling its duties to investors and society by stressing good corporate governance.

In the Camera segment, Canon faces Nikon, Olympus, Pentax and Sony (SNE). While with Office Imaging Products, Canon faces Xerox (XRX), HP and others. Finally, the Computer Periphicals segment is the most competitive with many companies offering similar products like printers and scanners.

[edit] Trends and Forces

[edit] Yen appreciation against Dollar

Canon is embroiled with various foreign exchange forces and due to that fact, it was in early 2008 exposed to an extreme sell-off in the stock due to concerns about a stronger yen affecting profits in 2008. The yen continued appreciating against the dollar through mid-March but the stock has instead appreciated year-to-date as you can see from the chart below. Canon has due to this reason appreciated in value and in the recent weeks increasing almost 30% since early February and 13.48% since the end of 2007.

As the graph shows us that the stock has been significantly undervalued over the last year due to a weak yen, however with the yen going up recently, this trend is expected to benefit CAJ.

[edit] References