Tachibana Eletech (TSE:8159) reported 39% increase in earnings for the first 9 months versus a year ago.
Sales were up 14%. Comprehensive income was up a whopping 155% on asset gains
(mostly securities). Earnings reflect operations, but comprehensive income
reflect the change in book value. The book value is up 11% in the last 9 months. I bought the company for the
balance sheet and earnings. The last quarter shows both are firing on all
cylinders.
| Price | ¥ 1265 |
| Market Cap | ¥ 26.4B
($259M USD) |
| P/E | 7.3x |
| Div yield | 1.2% |
| P/BV | 0.59 |
| Price/Netnet | 0.64 |
| ROE | 8% |
Operationally, the company showed the most sales gains
in their Factory Automation division and their Semiconductor division.
These are the two largest divisions of the company.
Exports are at 18% of sales, and I hope they improve that number.
This stock could easily trade at ¥ 2000. I don't know what it would take to get there, other than
hostile takeover or huge share buybacks, which I feel the company won't allow. I
am a little frustrated,
but then again I am patient and I am not a believer in catalysts. I don't
try to predict events. But I also cannot ignore the market price of this company because I
am not Japanese, so I don't intend to hold Yen forever. When this does reach what I believe is my
intrinsic value, I will sell and repatriate the money.
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