Topic: Growth Stocks

Stock Pickers Digest Hotline – Thursday, May 13, 2016

Article Excerpt

NISSAN MOTOR CO., $18.86, symbol NSANY on Nasdaq, is Japan’s second-largest automaker, after Toyota and ahead of Honda. Nissan has now agreed to buy a 34% stake in Mitsubishi Motors for $2.18 billion U.S. Mitsubishi’s share price has dropped about 43% since the company admitted that it manipulated data to inflate mileage results for some of its vehicles. The deal is contingent on Nissan looking closely at Mitsubishi’s operations and not finding any new problems. The company plans to let Mitsubishi remain a separate brand, with its own network of dealers. It won’t be involved in day-to-day operations. The deal looks like a good fit for Nissan. In the near term, its presence should boost consumer and investor confidence in Mitsubishi’s ability to put the emissions scandal behind it. Longer term, the two firms plan to jointly develop new cars. Mitsubishi aims to take advantage of Nissan’s global network of factories to grow in more markets. This includes the U.S., where Mitsubishi…