This leads us to a Japanese nanotechnology
company, NEC (NIPNY:NASDAQ). Ever wonder how
those tiny cell phones or computers work? It’s all
those teeny little chips that NEC makes. NEC’s business is focused on three areas. Its IT
Solutions division makes high-end computers and
peripherals such as servers, supercomputers, moni-
tors and projectors. NEC ranks second among
Japanese computer makers. Its Electron Devices
division makes components like transistors and dis-
play modules. NEC is tied for the number-two spot
among semiconductor makers. The third division
markets and sells its broadband and wireless net-
working equipment, and also runs one of Japan’s
largest Internet service providers, BIGLOBE. Although Japan has slowly recovered since the
end of the war in Iraq, economic conditions remain
challenging. But NEC is expanding its global busi-
ness, focusing on Europe, China and Taiwan, the
Asia Pacific region and North America. Most of the
attention is focused on Europe and China. Asia loves new gadgets The numbers aren’t bad. Net sales for the first half of the fiscal year ending March 31, 2004, came
in at 2,283 billion yen. The mobile communications
business increased 5%, with further expansion
expected for the full year. Sales of IT Solutions for the first half of 2004 came in at 949.4 billion yen. Sales of Network
Solutions were 852.5 billion yen, an increase of 21%
compared to the same period last year. NEC credits
this growth to an increase in shipments for mobile
handsets in both overseas and domestic markets.
Profits in the Network Solutions business doubled
compared to the same period last year. If you’ve ever been to Asia, you probably noticed
that everyone carries cell phones. We’re not talking
about old models from a year ago. We’re talking
about the latest and most advanced versions. And
NEC has been able to provide these gadgets. In
January it launched third-generation cell phones
with video viewing and conferencing features in
Hong Kong. This 3G service has already hit Britain
and Italy as well. Sales of Electron Devices decreased 3% com-
pared to the same period last year, though sales of
semiconductors increased 3% in the first half of
2004. But the Electron Devices division did record a
profit of 21.6 billion yen for the first half of 2004. Net cash for the first half of 2004 was 107.0 bil-
lion yen. That’s an increase of 56.4 billion yen com-
pared to the same time last year. After a steady run-up that started in May 2003,
NEC Corp is beginning to pull back. The company
will benefit from an improving global economy.
NEC (NIPNY:NASDAQ) is a buy on dips under
US$7.75. n I’m one of the least confronta-
tional guys you’ll ever meet. But,
man, do I love a good fight. I
guess I have an accelerated case
of Spectator Syndrome, but
nothing gets my adrenaline flow-
ing like an old-fashioned scrap. Naturally, I’m at my happiest
when election time rolls around.
I’m not talking about local elec-
tions. They have their moments, but they lack the star power I need. What I’m talking about is the big time. The
Foreman vs. Ali of the political world. The presidential election.
I love it. I’ll tell you right now, when the mud
starts flying, you can’t sandblast the smile off my face… especially when there’s a profit opportunity
involved. Or three. You see, I came across a report a couple weeks
ago that piqued my interest. I go through piles of
information each day. For this to hit me in the face,
it must be something special. Where’s the money going? The article gives a brief rundown of some of the presidential candidates and their benefactors. You’d
think it would just be private parties and unknown
companies supporting the presidential hopefuls.
This article says different. According to what I read, John Kerry is receiving
lots of money from some big-time players.
Specifically, Sony, Viacom and News Corporation. If 8 Hotline: 410 528 8228 TAIPAN Dirty Money: How to profit from campaign
2004’s mudslinging William Colburn
