A Different Type Of Investment In Canon

[rocketdesigner]

Since the next 6 months may very well re-define Canon's position in the market (at least the pro market), is it a good time to be investing in Canon stock?

I realize that pro sales don't generate the profit which their consumer products generate ... but there is the "trickle down" effect.

So do I buy Canon stock now with the anticipation they will hit home runs over the upcoming months?

 

[JasonM]

Cameras are also not Canon's only business unit so even big gains in pro or consumer cameras might not lead to growth in stock prices. I don't follow Canon stock so don't even know if they publish the % of total revenue and profit cameras and lenses generate.

 

[afira]

^^The above.

If you were serious about investing in Canon stock just because you feel that a major camera announcement is imminent, you would peg their growth over the past five years and mark every announcement time for major camera releases. However, you would probably find that market sentiment doesn't follow Canon's pro camera line for major stock price changes.

However, that being said, because Canon doesn't rely solely on cameras as their income source, you'd be far better off investigating things like: available capital, net profit/loss announcements, advances in research and development, consumer sentiment and market analysis of the value of the stock. Its announcements, unlike, say, Nintendo's announcement of the Wii U, shouldn't cause major ripples for the stock. Things like, for instance, a tsunami or an earthquake which disrupts production would.

They've been a bit of a roller coaster ride the past six months, with a low point at 42 and peaking at 50. You'll notice a definite correspondence to the Earthquake and announcements directly following. You're better off picking a point at which you feel comfortable purchasing it, but I don't believe that in the current market you'd be banking on more than 46-48 dollars USD per share.

 

[Eagle Eye]

Yeah, it doesn't really work like that. If you're thinking along those lines, I'd recommend speaking with an investment advisor who can take you in the right direction depending on what kind of risk you're looking for.