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Q: Canon - Are they a sure fire winner ( Answered 1 out of 5 stars,   1 Comment )
Subject: Canon - Are they a sure fire winner
Category: Miscellaneous
Asked by: arras-ga
List Price: $20.00
Posted: 19 Sep 2005 02:05 PDT
Expires: 19 Oct 2005 02:05 PDT
Question ID: 569588
Canon Inc looks to be a great investment for the future particulalry
on the printer/MFD and business machine side.
What problems will they/are they likely face in the next 3 years that
may put me off investing?
Subject: Re: Canon - Are they a sure fire winner
Answered By: omnivorous-ga on 19 Sep 2005 15:04 PDT
Rated:1 out of 5 stars
Arras ?

There are at least 2 web-based services that track what the Wall
Street analysts have to say about companies.  It?s a good way to look
at the competitive marketplace for a company like Canon and see a
variety of opinions.

The first service is free and you?ll find out quite a bit by doing a
search on its pages for Canon:
Search for Canon News (Sept. 19, 2005)

For example, from the Canon summaries, we can learn that:
?	sales predicted to rise by more than 11% this fiscal year.  JP
Morgan says that  slower-than-expected fall in prices of digital
cameras and further cost-cutting measures likely to have boosted
profits.  However, concerns remain about escalation of competition in
office equipment operations.
?	A just-completed J.D. Power survey of digital camera owners put
Eastman Kodak and Sony Corp atop surveys for customer satisfaction,
while  Canon has slipped in most categories.
?	Morgan Stanley has continued to ?overweight? Canon in its portfolio,
citing efficient use of cash, cost reduction, and a strategic edge in
LBP (laser beam color printers).  The company has a target price of
7000 yen for the stock (about $63).
?	Canon sales have been down within recent quarters due to lower OEM
sales of laser printers to Hewlett-Packard.

The second service that tracks Wall Street analyst activities is
Investext, a fee-based service available for no charge at many public
libraries.  Investext is published by Thomson-Gale and sometimes
appears under their ?Business Resource Center? database.   It is more
interesting because it has detailed analysts? reports ? and you get to
know who specifically follows a company?s stock.  That allows you to
use Google to find other comments that may have appeared in industry
publications like Computerworld or even business news stories from
daily newspapers.

Some information that can be helpful from recent Investext reports:
?	Kunihiko Kanno, the analyst that covers the firm for Credit
Suisse/First Boston, notes in late August that Canon acquired both NEC
Machinery and Anelva, the former a factory-automation company and the
latter a flat panel production equipment company.  Kanno says that
Anelva will allow Canon to move production of manufacturing equipment
for SEDs (surface-conduction electron emitter displays) in-house.  The
NEC Machinery acquisition could be quite large, with a potential cost
of 10 billion yen.
?	Kanno also tracks Hewlett-Packard sales of laser-based printers
closely because of it impact on Canon, the OEM.
?	Shima Nakao tracks Canon for Morgan Stanley.  Nakao says that Canon
has predicted price declines of 9% in compact cameras (after
originally predicting 18%) and 10% in SLRs (up from 8%).   The compact
camera market continues to fall, though Canon hopes that higher
resolution models will stem that decline.  Digital camera sales volume
was 41 million units for the past 12 months and the division is at
least marginally profitable.  However, Nakao forecasts price declines
in cameras at 12% per year in the near-term.
?	Satoomi Ushoda, in a July report on Canon done by Smith Barney (part of 
Citigroup), puts the company?s price target at $62.  In Q2, 2005,
Ushoda says that strengths were in sales of SLR cameras and digicams,
as well as reduced headquarters expenses.  However, office equipment
sales were $222 million (not yen) below Smith Barney?s projections for
the product line.  Inkjet printers were particularly poor performers
due to price wars in Europe and North America.
?	Ryohei Takahashi, analyst for UBS, is more neutral on Canon in a
report written in late April.  With a price target of 5,600 yen for
the company, he sees risks in digital camera sales, particularly in
competition with camera-based cellphones.  However, strong points for
the company are its color copiers and IC steppers (for LCD
production).  Takahashi says that major risks to the stock ? besides
competition in digital cameras ? are:
1.	exchange rates: each change of 1 yen with the dollar reduces
earnings by 5 billion yen (3.5 billion Euros with every 1 yen change)
2.	 continued risk of printer inventory reductions at H-P
3.	slow U.S. office markets, which account for more than 31% of Canon?s sales 

As previously mentioned, you can often find these same analysts quoted
on business and markets.  Here?s just one example, using the following
Google search strategy:
?ryhohei takahaski? UBS

Digital Photography Review

Some companies list the analysts that follow them on Investor
Relations pages.  Canon does not.  That?s an additional way to track
news & analysis of the company ? by doing a Google search for ?Canon?
+ ?analyst name?:

Canon Investor Relations

Google search strategy:
Canon + ?investor relations?
Canon + LBP

Best regards,

arras-ga rated this answer:1 out of 5 stars
I'm sorry, but this answer did nt flag up any real business issues or
problems that Canon have. All companies have problems of some nature
but I am unable to find any hard facts here

Subject: Re: Canon - Are they a sure fire winner
From: calummackenzie-ga on 19 Sep 2005 04:04 PDT
They jumping into the LCD TV market will be interesting!!, 
also be aware of canon dont sell camera phones, some articles are
saying that camera phoness are leading to more sales in digital
cameras which might be true as consumers get a feel for digital
photography. however with no phone cameras out there the cheap point
and cheap cameras might lose out to sony who have camera phones out

in saying that the quality of canon products is extremly HIGH, and
hopefully will lead to improved sales.

i would Back canon to do well, if they do some more advertising and
lower costs of low end products this would sky rocket the company, the
top end SLR sell them selfs,

look at
to see the latest developments from canon.
in particaular look at canon Epo

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