I bought mine on the Daimler noise. My own decision.
It is not the brightest move ever (read I have a loss right now) but given the size of the forces at play right now, it is difficult for NSANY to go either way ... Sounds confusing? Sorry, it really is a complex situation. On the one hand a cheaper yen favors Nissan as it helps them be more competitive in the US, on the other it signals a continuing weak economy at home and a deteriorating one in Asia, so the stock goes nowhere. Main story right now is the pace of reform in Japan with an auto industry consolidation background that may or may not pan out for Nissan. If you look closer though, you find that Ford pretty much controls Mazda, Toyota has no intention to merge or sell out to any one, Honda would be an expensive one to buy although I think a tie up is not necessarily out of the question, Isuzu is already owned 33% by GM ... What does that leave? Nissan is number two in Japan and not doing well, Mitsubishi is a bit scary because of its debt and the other ones are quite small really. (Daihatsu was owned 38% by Toyota and will be merged into the Toyota fold more closely, so will Hino the truck maker. Subaru, I don't know.)
At these levels, I think a quick profit is too much to ask. THis is not an internet stock but I reckon that the downside is very limited now. Just IMHO.
PS
here is a good link in English for info on the auto industry in Japan.
(from the Nikkei Shimbun)
nikkei.co.jp
sg |
