Nissan ousts its CEO

Article Excerpt

NISSAN MOTOR (ADR) $17.07 (Nasdaq symbol NSANY; TSINetwork Rating: Above Average) (310-771-3111;; ADRs o/s: 2.1 billion; Market cap: $35.6 billion; Dividend yield: 3.5%) now plans to fire its CEO Carlos Ghosn after his arrest in Japan. Nissan went to authorities with details of an internal probe prompted by a whistleblower. Prosecutors now allege that Nissan issued inaccurate financial reports in the five years ending March 2015. That’s because Ghosn and board member Greg Kelly underreported their income over those years. If the prosecutors’ suspicions turn out to be correct, it needs to be determined why Nissan’s accountants failed to spot the discrepancy. We’ll keep an eye on the probe and continue to update our advice. Meanwhile, Nissan’s shares have only dropped about 5% on the news, and its long-term outlook is positive. Nissan Motor is still a buy. buy…

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