Why is Toyota's stock still rising after the huge recall they went through?
Posted by adminJul 25
its just mind boggling to see that. i was wondering if some one can shed some light on this rise for TM.
Jul 25
its just mind boggling to see that. i was wondering if some one can shed some light on this rise for TM.
2 comments
Comment by Len on July 25, 2010 at 3:26 pm
Toyota’s stock got pummeled when it was announced that there were issues in need of resolution. Investors ran for the exits, afraid their investments would crumble into nothingness. Then, other manufacturers were revealed to be experiencing similar situations. Once it was not a matter of Toyota-only, investors decided the stock couldn’t be all that bad and deserving of devaluing, so they "bottom-fished" or found an opportunity and jumped onto the stock, figuring to grab a disproportionately good opportunity for capital improvement quickly.
Len
Comment by A nobody on July 25, 2010 at 3:26 pm
Toyota enjoys one of the highest loyalty ranking any auto manufacturer, in fact one of the highest ranking of any manufacturing company.
Toyota is not the only car manufacturer having recall problems but it is receiving the most press and there is a very strong possibility that it is politically motivated. (Toyota wants to close it’s most unprofitable assembly plant in the country, one of the few that is unionized by the UAW, and it’s located in one of the most liberal parts of the country)
Toyota is still selling cars world wide and will continue to do so at rising numbers. The company will probably have higher sales and profits at the next reporting period.
The company is very well managed and it’s operations are considered among the better.
The market knows all of this and is ignoring what the press is trying to feed us and looking at the facts.