In today’s briefing:
- Nidec (6594 JP): Structural Problems
Nidec (6594 JP): Structural Problems
- Founder and Chairman Nagamori has reappointed himself CEO, obscuring the reasons why Nidec’s share price has declined.
- Quarterly earnings should recover, but strategic investments look three years into the future while materials costs rise and the economic situation deteriorates.
- Rising interest rates and compression of valuation multiples are likely to dampen the share price. Look to the long term without expecting a return to the glory days.
Before it’s here, it’s on Smartkarma
