TOYKO - Nissan Motor Co. Ltd.'s stock price is down since COO Carlos Ghosn announced a radical restructuring Monday, Oct. 18.
From ¥686 on the Friday before the announcement, Nissan's price dropped to ¥620 Oct. 19 and as low as ¥585 Oct. 21. It closed last Wednesday at ¥624, or $5.95 at current exchange rates.
Nissan's stock price had more than doubled on anticipation that Ghosn, a former Renault executive, would lead the automaker back into the black. From a 20-year closing low of ¥301 on Oct. 9, 1998, the stock surged to ¥708 July 19.
Ghosn, who said the market is taking profits, has adopted a wait-and-see attitude.
'Probably a lot of people think that implementation (of the restructuring) is going to take time and it's going to be risky. They want to take their profit and wait a little bit, then get back to being a shareholder when the first signs of the recovery of Nissan will be evident,' he told Automotive News.
Another view is that Nissan affiliates are selling Nissan stock. After all, Ghosn has said Nissan probably will keep its shares in four affiliates and sell off its shares in 1,390 others.
Asked how many Nissan shares the 1,394 affiliates hold, Ghosn whistled, then admitted he didn't know. The stock price affects nothing in the restructuring plan, Ghosn said.
'I'd like to take a look at the price one year from now or two years from now,' he said. 'This, in my opinion, will be much more significant than what is taking place now.'