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Subject:  Makita Corporation Date:  2/18/2006  2:28 PM
Author:  pencils2 Number:  9 of 23

Makita Corporation


Makita Corporation
3-11-8 Sumiyoshi-cho
Anjo, Aichi, JP 446-8502
Phone: (056) 698-1711

Makita has just popped onto my radar after my brother-and-law got some Makita tools this Christmas. Makita is an underfollowed company(Only six news articles on Yahoo! Finance since July 8) with great financials.

Makita has 724.59M in cash and only 33.99M in debt. Makita has a market cap of 3.51 Billion so this takes away some of the risk factor. The only bad spot I see in Makita's financials is the negative Levered Free Cash Flow. They have been improving their product line for years and in many places their new product line has sold out. Makita has locations in many countries ranging from the Middle East, China and Russia to the Bahamas and South America.

Founded in Japan in 1915, Makita is still headquartered there and is expanding to new locations quickly but conservatively. Makita manufactures power tools, including portable woodworking tools, primarily saws and planers, and portable general purpose tools, primarily drills, grinders and sanders.

Makita's primary competition is in Black and Decker, Danaher Corp, and Stanley Works, according to Yahoo! Finance. Black and Deckers tools have been known to be crummy, just not very good quality. They do own several other companies that have good reputations, but I like Makita because they have their own product line that they can focuse on and improve. I don't know too much about Danaher and Stanley Works, but from looking at these four companies cash/debt positions, Makita is the only one of these companies that has more cash than debt.

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