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Kyle Ferguson
Kyle Ferguson
Articles (522)  | Author's Website |

David Dreman Reduces Canon Holding Despite Favorable Signs

Guru reduces stake by 70%

December 18, 2015 | About:

David Dreman (Trades, Portfolio) is a contrarian investor who runs Dreman Value Management LLC. The firm was founded in 1997. Dreman has been a contrarian value investor for over 30 years.

In the third quarter of 2015, Dreman reduced his position in Canon (NYSE:CAJ) selling 84,443 shares, a reduction of 70.34%. He now owns 35,612 shares of Canon.

Canon is also traded in Switzerland, Japan and Argentina.

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Canon was incorporated under the laws of Japan in 1937. The company is a manufacturer of office multifunction devices, plain paper copying machines, laser multifunction printers, inkjet printers, cameras and lithography equipment. Canon operates in three business segments: Office business, imaging system business, and industry and other business. Today the company has a market cap of $32.77 billion and employs more than 170,000 people worldwide.

Canon has five good signs for their company:

  • They are expanding - operating expansion is usually a good sign.
  • They have a comfortable interest coverage, meaning they have enough cash to cover all of their financial debt.
  • The company's dividend yield is close to a three-year high.
  • The P/S ratio is close to a one-year low.
  • P/B ratio is close to a one-year low.

Below is a Peter Lynch chart for Canon.

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It’s noteworthy that Dreman has drastically reduced his holding in Canon, a 70.34% reduction, even when the company has strong financials and good signs looking forward.

Cheers to your investment success.

About the author:

Kyle Ferguson
Kyle Ferguson is an investor, author of The Christian Bubble, and he is a world-renowned human and animal rights activist, and the co-founder of The Light Movement. He is outspoken, fearless, and relentless. Kyle lives in Montreal, Quebec, and he is dedicated to making the world a better place with love and light.

Visit Kyle Ferguson's Website


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