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David Dreman Reduces Canon Holding Despite Favorable Signs

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 ( 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.

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.

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.

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This article first appeared on GuruFocus .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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