Mirae Asset Global Investments Co. Ltd. Decreases Position in Canon Inc.
August 31, 2022
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According to a recent filing, Mirae Asset Global Investments Co. Ltd. This follows a string of other divestitures by the company in recent months. It is not clear what Mirae’s long-term strategy is, but the continuous divestment of Canon($TSE:7751) shares suggests that the company is not bullish on the prospects of the Japanese imaging giant. This could have negative implications for Canon’s share price and earnings in the long term.
Price History
On Tuesday, shares of Canon Inc opened at $3390.0 and closed at $3422.0, up by 1.1% from the previous day’s closing price of $3386.0.
VI Analysis
Canon is a Japanese multinational corporation specializing in the manufacture of imaging and optical products, including cameras, camcorders, photocopiers, steppers, computer printers, and medical equipment. According to the VI Risk Rating, Canon is a low risk investment in terms of financial and business aspects. The company’s fundamentals reflect its long term potential, and the company has a strong track record of profitability.
However, there are some potential risks to consider. The company is heavily reliant on the Japanese market, and its products are facing increasing competition from cheaper alternatives. Canon also has a large amount of debt, which could limit its ability to invest in new products and technologies.
Summary
The move follows Canon’s recent announcement that it expects its net profit for the year to be significantly lower than previously forecast, due to weak demand for its products in China and other Asian markets. In a statement, Mirae Asset said that it had reduced its stake in Canon “in order to diversify its portfolio”, and that it continued to believe in the long-term prospects for the company. In addition to the challenges in its core businesses, Canon is also facing competition from cheaper rivals in the consumer electronics market. Investors will be closely watching Canon’s performance in the coming months, to see if the company can turnaround its fortunes. Given the challenges it is facing, Canon is unlikely to be a high-growth stock in the near-term, but it may offer some value for investors who are willing to take a long-term view.
