Jinpan: Despite Record Sales, Near-Term Market Softness And Dividend Cut Causes Overreaction

Foreword: This unsolicited assessment is founded on my unique background and experience focusing mostly on power delivery markets. I am a retired GE executive, with over 12 years managing military electronics and semiconductor businesses and 25 years managing power transformer businesses, followed by 7 years as one of JST's Independent Directors. Over this period, I have had the unique opportunity to understand JST management's capabilities and JST's competitive strengths and compare those and the company's performance with dozens of JST's competitors in China and throughout the world. Prior to becoming a Director, I met and worked with JST's competitors' managements and technical teams and toured dozens of factories. This experience, in turn, provides me with the knowledge and ability to assess JST and their competitors' relative capabilities to successfully serve existing and future markets.The investment community has demonstrated again that it does not understand Jinpan (Nasdaq: JST) like I do. If it did, the stock price should be much higher. The fact that investors do not understand JST's management, product and technical depth and significant competitive advantages, or the huge, yet to be tapped markets, plus not being able to differentiate the good China companies from the shady ones, are the primary factors limiting this stock from being valued at a fair price. Overcoming these handicaps will require JST to find new ways to communicate to... Read more

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