CAJFF - Canon: 'Hold'ing Was The Right Choice

2024-06-17 22:38:47 ET

Summary

• Canon has been a successful investment for me, but recent overvaluation has led to a shift in thesis to a "HOLD".
• Despite challenges, Canon's low debt and sector leadership make it a positive investment, but the current valuation is not attractive.
• Company's recent performance shows mixed results, with challenges in certain segments, but overall growth in sales and profit.

Dear readers/followers,

In this article, I'll update my thesis on Canon ( CAJPY ) (CAJFF). This is a successful investment I've been making for about a year. I've been investing when it was cheap, and in my last few articles, I've mostly managed to outperform the market using Canon. In my last article, I changed my thesis to a "HOLD" due to what I viewed as non-trivial overvaluation on the part of this company. I considered that Canon's market outperformance was limited, and its valuation was no longer sustainable. The company had achieved consecutive quarters of top-line growth and cost reduction, but its profitability wasn't as strong as it once was....

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