Pilot Corp (7846)

Source: Pilot Corp website

I've taken up drawing lessons of late and this somehow led me to investigate which companies that sell drawing materials are listed. This is because the cost of drawing materials cost a pretty penny and the art and creative industry will never die regardless of the state of the world economy. Creating art is in our blood as after all it has probably been around since the beginning of time. Creating art also means that even if you are a master, you will still need to draw and paint the same subject a few times before you are pleased with it.

From paper to markers to paint, I came to pens which is where I found Pilot Corp and the 1 year stock chart was like it was reaching for the stars! I was shocked that the humble pen that we use daily and carelessly sometimes is like a powerhouse in the stock market. ACCICB was so impressed with the stock chart that he went to read its annual report.

I also started doing research as this is a potential stock that could be added to our portfolio. ACCICB told me that he liked what he read in the annual report of their investments in R&D and how they try to turn a new product such as Frixon into a full range of products from pens to markers etc. I told him that Pilot pens have been increasing in price over the years as I've been buying them on and off ever since I started work. It may seem like just a 10 cents or 20 cents increase once every few years but it all adds up I guess!

Thus the latest dip in stock price of Pilot makes it rather attractive but it's still not low enough for me to enter the market yet. ACCICB was telling me that we had pretty much maxed out our holdings in Japanese stocks so any new additions would have to be an exception rather than the norm. Pilot has a pretty impressive marketing strategy and its brand awareness is awesome but I do notice that there's very little news about the company. Probably because of the nature of the product which is neither hip nor state of the art so it doesn't get much news coverage.

Its more of a flying under the radar stock and it is performing much better than its listed peer Mitsubishi Pencil Co Ltd which owns the Uniball brand of pens and other forms of stationery. Pilot shall join my ever growing watch list of stocks and who knows one day I may even own the stock!


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