Bloomberg noted that Nikon has the attention of Hedge funds but for all the wrong reasons. Evidently they are the prime target for 'shorters', that is investors that bet on a company share price going down. Nikon is not alone in this and other technology companies like Casio are also targets.
Why the negativity towards these companies? It appears that there is a general scepticism that they will be able to grow revenue by introducing new products and services in the near term. New business areas will require time and investment before they will grow sufficient revenue to cover the decline of current technology products.
Nikon also makes lithography systems that are required for producing semiconductors and displays for smartphones. The current slowdown in growth may have a negative impact on this side of the business as well as the ongoing decline in Digital Camera sales.
How have other investors viewed the company? Well aginst this Nikon shares have seen a 9% rise since the turn of the year. Perhaps this is due to better recent results and high expectations for the new products out this year. The new D5 and D500 will no doubt boost sales in the near future but the underlying trend may not be so positive. Full-year results are due out in May and that may give a good indication as to whether the shorters will win or find themselves staring down the barrel.Original Article