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When looking for emerging markets' exposure, keep an eye out for those companies that are based in America and other developed economies, but do a lot of business in emerging markets.

The currency wars can actually benefit a company with global sales, depending on the market and position of the company it hurt. Many of these derivative / downstream plays have the added value of being more stable companies operating in developed markets.

One of those companies to keep an eye on is Canon (CAJ, quote). Canon is based in Japan, but trades here on the New York exchange as an ADR.

What is an ADR?

An ADR, or American Depository Receipt, is a negotiable certificate for shares of a foreign stock that can be bought and sold on a U.S. exchange. ADRs allow investors to buy shares in a foreign company and collect any dividends and capital gains in U.S. dollars.

Since hitting a low back in July, Canon has been making higher highs and higher lows, with a new 52-week high yesterday.

There are many reasons to consider looking at CAJ. Fundamentally, the company seems fairly valued with a P/E value of 19.5073 -- in line with the computer peripherals industry -- and one of the strongest net margins in the industry.

One of the most impressive aspects of this stock is that it has little or no debt in its capital structure and may present less financial risk than the industry aggregate.

Canon is truly a global player in the plain paper copying machines, laser printers, inkjet printers, cameras and steppers with sales in Japan, the United States, Germany, France, Taiwan, China, Malaysia, Thailand and Vietnam.

Consider the following two trades:

Option 1: Consider purchasing stock in a stair-stepping method each time the stock retraces back to the trend line.

For example, if you wanted to buy 200 shares of CAJ: Buy 75 shares on a pullback. Then, when the price pulls back another 3% to 4%, consider buying an additional 50 shares and so on.

If the price continues to run higher, look for the dividend pay dates in order to capture a lower price due to the dividend payout.

Option 2: Consider looking at longer-dated call option to capture earnings after the holidays. Caution is warranted as options volume in CAJ is low. Please use limit orders to protect yourself.

Disclosure: No positions