Makita Corp (ADR) (MKTAY)

Graham formula gives me a faire value of $40 when using current earnings ($3.12) and book value ($22.41). Using more conservative earnings of $2.00 (based on the numbers from 2006), I still get a fair value of $31. That's a margin of safety between 25 and 40% based on the current price of $23.63.

Great products, and was pleased to find strong fundamentals here.

Great company with quality products, severely undervalued and beaten down by market volatility. Makita is a top-notch manufacturer and in the long run the stock should recover well.

CHEAP

Lot of cash, no debt, good margins, plenty of room to grow and trades at book-value.

Japan Bull Market Checklist
Strong Currency...check
Low Exposure to Sub-Prime...check
High savings rate..check
Banks flushed with cash..check
Ability to buy distressed U.S assets..check
Deflationary economy showing sings of ending...check
Japan market ready for takeoff!!

Tons of cash, low long term debt. Plus, I like their drill bit sets.

Solid company, great products, steady growth, stable management, good ROI, low debt, attractive valuation, looked on favorably by CAPS and Wall Street analysts alike. Even a very conservative estimate of discounted cash flow suggests this is trading at less than half its likely fair market value. To top it off, being based in Japan with diversified global operations is a big plus at the moment.

Great tools, good prices, should get in on Asia and someday I'm sure someone will build something in the US and Europe.

3 to 5 star stock in one year.

japanese tool company

They make the BEST quality portable tools. I have personally used their tools as a production electrician, they make dewalt look like yellow turds, Milwaukee Power is comparable, but my makita set was the envy of all my fellow electricians. My 14.4 tool set out performed other brands 18v sets.

Also huge sales and service base is in CHINA.

Good product, however housing builds and economics for DIYer's may limit sales in the next year. Am concerned about battery life of portables.

Great tools

Housing Slump is on its way to being over. But since older homes are not being sold sales of power equipment to both homeowners and contractors are going to increase.

cheap

The quality of their cutting tool products and the strength of their American distribution networks means these guys are roaring back.

One poster questioned the quality of their product, but qualified their statement by disclosing that they did not have 1st hand knowledge.

I can personally vouch for the product. It's a top notch product and consistently scores in the top bracket of the tool reviews I've read in Taunton and others.

I am a customer. I will spend extra for a Makita product and will shop the brand exclusively except under special exceptions. All of their products are of the highest quality, even the stuff I've purchased in the last year.

Aside from that, the production crews in California all seem to be using Makita exclusively now - at least the drills and circ saws for sure. Some of them seem to be customized - like a fashion trend. These are the new silver and chrome (?) line, not the blue ones like I use.

The company is sitting on almost $1B US in cash and is growing earnings at a 25% clip due to having the Chinese construction market as buyers as well as the US and Europe. Couple that with great management and a P/E under 10 and you have a freaking hot dog giggity winner.

it has great ability to keep outperforming others