Karin, I don't think Nissan is for sale...
I don't know when you bought your shares but obviously your entry point will determine the amount of patience you have with NSANY...
There are many negatives with it now and I would say most of them are quite well known;
1- their main market is under tremendous downward price pressure.
2- sales are shrinking by the day
3- exports to their growth market have gone up in smoke with the latest crisis in Asia
4- there is a lot of uncertainty as to future access to credit (re cost of borrowing)
5- only speculation but to that extent perhaps the biggest factor of all, possible unknown liabilities from their subsidiaries (pre-bubble days)
6- higher cost manufacturing than their leaner competitors (Toyota and Honda)
Now , with all those negatives , why would you want to buy NSANY?
Well, for the potential turn around story. Consider these;
1- possible alliance with DASA (Benz)
2- drastic management action (sale of other units, assets in real estate etc)
3- the company truly turns around
4- Asian economies eventually turn around
5- the yen appreciate, in due course, valuating your shares higher in dollar terms
6- the industry may see a few other mergers so the potential for surprises is high
7- other players in the Japanese market (top players I should say) are valued at 10 times the price of Nissan.
I am not sure I answered your message, nor do I think I was trying really but these are the factors I see at play here. To what extent they will have an effect on the stock is a million dollar question (well for some) but basically you bought a laggard in a spriraling down economy and your hope rests on a turn around story. So patience is the name of the game here. I am not suggesting you should stay invested, you might just do a lot better selling now and putting your money in a different co and hitting it big, but that is a different story altogether.
All the best,
sg
PS for all its worth, Nissan has managed to sell more cars (or lose less sales than other car makers here in Japan) but that has come at the expense of profits since they have been aggressively discounting to reach their targets. In turn, Toyota with its good reputation, is not really budging on price. In the US, Nissan had a dismal performance although the US auto sales are red hot... Not good...
sg |
