Canon, Inc. (ADR) (CAJ)

hey4ndr3w (99.04) Submitted: 1/02/08 9:33 AM : Start Price: $45.85 CAJ Score: 9.60

Japanese stocks are historically cheap right now. In 2007, the Nekkei turned in its first yearly loss since 2002, at the same time their neighbors in Asia were posting double digit gains. By one estimate, 40% of the Topix companies have a price/book value ratio of under 1.0, which means they're trading for less than the value of their assets! Them's bargains in yonder hills!

Much of the decline in the Nekkei can be attributed to the recent rise of the yen, which sucks the value of earnings from foreign markets when they're converted to the foreign market's currency. If the yen stabilizes against the dollar, some of that value will return to shareholders.

Institutional investors are sniffing around, looking for new places to park cash. WSJ reports that the Qatar Investment Authority, with over $60-billion under management, is looking to buy Japanese shares, as is the China investment Corp., with over $200-billion. A rising tide of investment dollars will float a lot of keels.

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