Yaskawa Electric (OTCPK:YASKY) (OTCPK:YASKF)
(6506.T) has been a surprisingly volatile stock over the last two
years, although it has been one of the best-performing automation stocks
over that time, but the 50% move since the start of the year is extreme
even by that standard. While many automation stocks have done quite
well on year-to-date basis (including Cognex (CGNX), Fanuc (OTCPK:FANUY), and Nidec (OTCPK:NJDCY)),
Yaskawa has been the standout as investors apparently not only think
that the worst is over, but that demand in markets like China is going
to rebound sharply.
Much as I like Yaskawa as a
company, I don’t share this view. China’s export-oriented sectors did
better than expected in the first quarter, and I don’t see things
getting substantially worse unless the trade friction with the U.S. gets
worse, but I think a sharp V-shaped recovery is too optimistic given
mounting challenges in North America and Europe. With today’s price
already anticipating a major long-term acceleration in growth, it’s hard
for me to see what can take these shares higher other than just raw
momentum.
Read more here:
Yaskawa Electric's Rocket Ride Anticipates Smooth Sailing
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