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Japanese Electrical Goods


Normally I post my weekly stock pick on Mondays, but I missed it yesterday, sorry long weekend. I’m posting it today.

The Market This Week

ECB Mersch says current recovery not sustainable, and I agree. Shanghai shares are down big on policy concerns. The Fed loses a lawsuit demanding transparency. If you can’t trust the Fed who can you trust? Joke, at least yourself that’s for sure. Some former athletes financial adviser is charge in another Ponzi scam. Hearing that Asia can grow like the USA back in the 1950’s. I agree 110%. Citibank may be facing another $40 plus billion in loan losses, and energy prices look to be a little toppy currently.

My Stock Pick This Week

It’s a sell short on a Japanese ADR that is involved in the industrial electrical goods equipment manufacturing. This is a little bit of a tough one because this stock has been in a steady uptrend for the last year. If the broad market is looking to slide which I think it could anytime, this pick may be a nice low-risk high-reward winner. If not, I got a tight stop-loss on it. There’s always another taxi coming along, and there will always be other stock buy or sell opportunities coming along also.

Sell Short Nidec – Ticker NJ

Sell Entry: 18.40 to 18.15

Stop-Loss: 18.50

Take Profit Areas: 17.92 to 17.44, 17.14 to 16.98, 16.83 to 16.68, 16.10 to 15.95, 13.96 to 13.83

Nidec Company Profile

Nidec Corporation engages in the design, development, manufacture, and marketing of small precision motors, mid-size motors, machinery, and electronic and optical components. Its small precision motors include spindle motors for computer hard disk drives, motors for optical disk drives, and small precision fans and other small motors. The company's mid-size motors are used in automobiles, electric household appliances, and industrial equipment. Nidec's machinery products comprise power transmission equipment, semi-conductor manufacturing supplies, test systems, measuring equipment, card readers, industrial robots, and factory automation systems; and electronic and optical components consist of camera shutters, camera lends units, encoders, switches, trimmer potentiometers, motor driven actuator units, optical pickup units, and processing and precision plastic mold products. The company also offers auto parts, pivot assemblies, and other services. In addition, it manufactures and sells motors and actuators, such as air flow system, seat positioning system, body closure system, braking, and drive-line and steering system; and base plate die-casting and top cover used in hard disk drives. The company serves manufacturers of hard disk drives, and various automation equipment, electric household appliances, home video game consoles, telecommunication and audio-visual equipment, and automotive components. It has operations principally in Japan, the United States, Singapore, Germany, Thailand, the Philippines, China, and Vietnam. The company was founded in 1973 and is headquartered in Kyoto, Japan.

Click here to review and trial the Trading Software we used in determining our short position on NJ.

Click the Nidec Stock Chart for a larger view.

Nidec Stock Chart