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Topic: Growth Stocks

HONDA MOTOR CO. LTD. ADRs $36 – New York symbol HMC

HONDA MOTOR CO. LTD. ADRs $36 (New York symbol HMC; Conservative Growth Portfolio, Manufacturing & Industry sector; ADRs outstanding: 1.8 billion; Market cap: $64.8 billion; Price-to-sales ratio: 0.7; Dividend yield: 2.4%; TSINetwork Rating: Above Average; www.honda.com) sold 255,540 cars in China in the first five months of 2013. That’s down 2.4% from the same period a year earlier. Chinese consumers continue to boycott Japanese products because of a dispute between the two countries over several small islands in the East China Sea.

The company hopes to spur sales by launching 12 new models in China by 2015. These cars will have a number of new features, including better pollution control and safety equipment. In addition, Honda will move some of its research activities to China and buy more parts from local suppliers.

Honda is a buy.

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