Question

Due to nissan scandal should investors buy, hold, or sell this stock? Is there any weight to the news around Nissan's new direction? Do you believe Nissan can recover from the financial and reputation damages?

Answer 1

Nissan scandal was mostly related to its previous Director and His inflationary compensation which was beyond the industry acceptable limits. It was also related to modification of the books of accounts in order to include the profits and he was charged with 2.5 billion Euro lawsuit.

I think this is a past event and this event is already discounted into the share price so fresh positions can be taken into the the company as it will be trying to adopt to all the public disclosure norms and best possible industry standard so one should be trying to take position as this company as Nissan has high degree of potential in the auto space. Investors should be buying onto this stock.

Yes, I think that new directors and new board are going to turn around the company and one should be trying to take position in the Nissan as the share is undervalued according to the industry prices standards and it is expected to show the momentum once new directors and board takes over.

Yes, I think Nishant can recover from damage of reputation because there is a change in management and if they are going to perform according to the expectation of the public. they are going to recover because one person cannot decide the future of entire company.