NISSAN MOTOR (ADR) $18.30 (Nasdaq symbol NSANY; TSINetwork Rating: Above Average) (310- 771-3111; www.nissan-global.com; Shares outstanding: 2.3 billion; Market cap: $41.2 billion; No dividends paid) has risen over 9% since mid-October, after the Japanese government and the country’s central bank said they would make huge investments in Japanese stocks. They will also expand the money supply by making major government bond purchases.
These moves have pushed the yen down to a seven-year low. This makes exports—like Nissan’s vehicles—much more attractive to foreign buyers.
Just-released figures show the Japanese economy shrank by 1.6% in the latest quarter, erasing any doubt that the stimulus is needed.
Even so, stocks, including Nissan, have not dropped. That’s because Prime Minister Abe has just proposed even more measures to stimulate growth.
These include a further $26 billion of stimulus spending, plus a snap election later this year that will likely give him an even stronger mandate to boost the economy and implement muchneeded reforms.
Nissan is still a buy.
