Smart Trading Action Alert: Take 18% profits on this Japanese cosmetics co.

Posted December 8, 2007

"Looks like Ms. Cadden's persistence payed off for TFN readers who took our advice. Shiseido stock finished this week at a smidgen under $24.50, up almost 18 percent over our recommended entry price. This may be as good a time as any to start looking at taking money off the table." — J. Christoph Amberger

by J. Christoph Amberger

Baltimore — (TFN): When it comes to investing, I admit that my attention is usually absorbed by oil and energy stocks, technology, and of course China IPOs. Would it surprise you when I told you that I pay little attention to cosmetics companies?

But as I was writing up my Monday eNews back on September 3, I received an IM from Smart Trading Action Alert host Laura Cadden. If I had seen the news on Japanese cosmetics manufacturer Shiseido Co. (4911.T) announcing 25 billion yen buyback of its own shares. I hadn't. And I would have been quite happy writing up my own story. But when the host of a popular investing show called "Smart Trading Action Alert" insists I look into a story, I know to give in.

Accordingly, on September 4, we posted and broadcast "Smart Trading Action Alert: Buyback means catalyst for year-end surge".

Thanks to Labor Day, the increase in the Tokyo price was not reflected immediately in the price of its ADR, which trades under the symbols SSDOF and SSDOY (both the F and the Y at the end signaling foreign shares) on the pinksheets. The ADR had closed that week at $20.83.

Shiseido is up 18%

We wrote: "While the talking heads have been trying to tie subprime to upcoming drops in consumer spending, Shiseido's Asian market should be almost immune to major drops in demand. We see an upside of up to 20% to materialize by earnings release for Q4, 2007. Buy SSDOF below $21."

Shiseido is up 18%

Well then. Looks like Ms. Cadden's persistence payed off for TFN readers who took our advice. The stock finished this week at a smidgen under $24.50.

This may be as good a time as any to start looking at taking money off the table, for gains of almost 18 percent over our recommended entry price.

To view Laura Cadden's latest Smart Trading Action Alert, with guest Chris DeHaemer, click here. And make sure you sign up for our FREE TFN News Feed for breaking news, special reports and new financial videos. Click here to pick your favorite reader. If you prefer to have the feed delivered to your email, just click here.