I would not invest in Toyota stock because of the earthquake that happened in Japan. Everything was put into halt from March 14th to March 22nd and it is predicted that somewhere in mid-April or even later that the Japanese automaker will “expand domestic production to cover more models… in accordance with the recovery of materials and parts supplies” (Reporting by Shravya Jain) A headline such as “UPDATE 1-Toyota Motor partially lifts output halt” will definitely affect the price because it will keep the stock either steady or drop. If its present range is 80.50-81.23 and the stock is going down it will most likely continue to do so. The stock started going down from April 2010 to October 2010 and only from January 2011 to mid-March 2011 did it go back up. Moreover, as of the last couple of days, the stock began to drop so it is expected that the stock will keep decreasing and will bring no profit. If we purchase this stock that would mean we are taking a huge risk in losing a lot of money and according to the news it is better to wait and see if there is going to be some progress in April.
http://www.reuters.com/article/2011/03/28/idUSL3E7ES32R20110328
Range 80.50 - 81.23
52 week 67.56 - 93.90
Open 80.85
Vol / Avg. 711,765.00/839,283.00
Mkt cap 138.87B
P/E 20.75
Div/yield 0.47/1.26
- Anzhelika Masheyeva