Despite the fact that there are -- quite literally -- tens of thousands of opportunities to engage in the global financial markets, the discourse is dominated by the Apples or the Intels of the investment community. That's understandable given the enormous capital and brand leverage that the big boys command, but sometimes, they don't provide attractive returns, especially when the underlying economy to which they are based isn't doing so hot.
Apple Inc. (NASDAQ:AAPL), for example, has been underperforming in the markets since May of this year, even though the company has been churning out record-breaking product sales. Intel Corp. (NASDAQ:INTC) hasn't quite had similar luck, with INTC stock down nearly 20% year-to-date. Blame the slothful U.S. economy or the protracted death-throes of the personal computer industry -- a lesson that competitor companies like Hewlett-Packard Co. (NYSE:HPQ) seem unable to learn from -- the playboys of the markets are failing to impress.
In order to sidestep this problem, investors must start to think differently and abroad. Enter Seiko Epson (OTCMKTS:SEKEY). A Japanese electronics company specializing in printing and imaging devices, its broad business scope allows Seiko Epson -- which also produces consumer cyclical items like watches -- a considerable measure of flexibility that industry-specific organizations don't have. In addition, some of the export-driven components of Seiko Epson's business benefits from favorable currency dynamics -- a sort of gift from the Bank of Japan courtesy of the "Abenomics" policy of Japanese prime minister Shinzo Abe.
While some will argue against the "morality" -- or lack thereof -- of Keynesian monetary strategies, the reality is that in this case, it has buoyed the market value of several Japanese stocks, just because. It's not the most technical answer but what else can explain the 145% jump in valuation of SEKEY stock between November of 2013 and the high of September 2014 besides the stupid, crazy world of investor psychology?
The best part is that investors right now can jump on the bandwagon. After September of 2014 until the present time, SEKEY has given up more than 30% of market value. It's fair to say that Seiko Epson shares have entered a consolidation period as the bulls and bears figure out the next macro move. Given the long-term inclining trend, that move is likely to the upside.
We can also deploy objective statistical data in our analysis. Over the past 90 days, SEKEY stock's market performance has averaged 1.6%. Since the history of SEKEY in the markets, anytime quarterly performance generates a positive number, there is a 70% probability that shares will move higher over the next three months, by an average return of 22%.
That's impressive chump change, making Seiko Epson worth a second look.