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Author: pencils2 Big gold star, 5000 posts Feste Award Nominee! Old School Fool CAPS All Star SN Odyssey SN Olympia3 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 5  
Subject: Makita Corporation Date: 1/8/2006 8:21 PM
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Hi all,

This has been posted on several other boards, so I thought I would post it here. I have no idea why there has been no activity on this board.

Makita looks undervalued to me from my research, so I'd like to here what any of you think of MKTAY currently.



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.

Link to Makita Annual Reports and SEC Filings:

Link to Yahoo! Finance competitors:

Link to Makita homepage:

Link to Makita at Yahoo! Finance:

I think this covers everything, at least the important statistics for Makita. This seems like a company that Tom G. would be interested in sense Makita has been around for nearly 100 years. Makita has gone up five times in value since 2002, and it certainly could keep going.

If someone from TMF could let me know what they think of this as an investment oppurtunity that would be great.

Any other feedback greatly appreciated,


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