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Analyst says Canon stock ready for comeback

Canon USA Inc., currently based in Lake Success,

Canon USA Inc., currently based in Lake Success, plans to move into a Melville facility currently under construction by the end of 2012, and has said that its workforce will grow to more than 2,000 employees in the new building. (May 25, 2011) Credit: Newsday / Audrey C. Tiernan

After a close look at the fundamental health of three undervalued Japan-based electronics giants -- Panasonic, Sony and Canon -- one of the trio seems best prepared for a strong comeback in the wake of the island nation's earthquake, tsunami and nuclear plant disasters, one analyst says.

All three should be able to come back strong, but Canon, which has its U.S. headquarters on Long Island, is in the best position to prosper quickly, the website SeekingAlpha says in a blog titled "Panasonic and Sony Still Shaken, Canon Ready for a Comeback."

The blog says, "Major disasters tend to lead to over-selling which is a perfect opportunity for value investors to scoop up undervalued stocks that show strong fundamentals. But, buyers beware."

Panasonic and Sony have fundamentals that are unimpressive, the blog says.

But "Canon has reported that their current year profits ($4.6 billion) will be higher than forecasted due to the rapidly recovering supply chains in Japan that have nearly been restored to pre-quake levels."

This indicates that "Canon appears to be the best candidate for value investors due their valuation and strong fundamentals."

Canon USA, of Lake Success, is building a new headquarters in Melville.

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