Pelikan...A Local Price Tag On A Global Brand

Pelikan is one prominent stationery producer and distributor in the world in high-end writing instruments, art, painting and hobby products as well as school and office stationery supplies that needs no further introduction.

Its projected EPS for 2010 is 0.18 which translates to a PE of 6.7 at 1.21. The stock offers decent value with DPS of 0.02, going ex on 13 Aug. Nonetheless, my liking for Pelikan is premised beyond these numbers and they are:-
1. The possible recovery surprise from Euro zone esp. the Deutsch market (the primary market).
2. Strong franchise value in Pelikan.
3. The defensive nature (generally recession-proof) of business in stationery (indirect link to education).
4. Company's active share buy back programme.

The drop in Euro has a negative impact on its earnings reporting, nevertheless further weakening in Euro may be unlikely barring any major bad news from PIIGS.

Technically, I see its share price bottoming out and has great potential for further upsides.