Saturday, July 27, 2019

Japan's Nidec (OTCPK:NJDCY) (6594.TO) is going through some challenges today as demand for motors and related components in markets like autos, appliances, and industrial end-markets softens, but the long-term story continues to look strong. Nidec continues to rack up wins for its EV traction motors, and Nidec looks like an appealing option for companies that want to get electric vehicles on the market sooner rather than later. Likewise, the long-term opportunity for smart DC motors in areas like appliances and industrials is quite attractive.

Valuation remains the biggest "but" to the story. The shares did pull back some after my last article on the company, but they've largely recovered, and the valuation is hard to reconcile with the admittedly above-average growth opportunity here. High single-digit prospective returns are tempting, but I'm inclined to hold out for a better prospective return before investing my own money.

Click here to continue:
Good EV Orders Support The Long-Term Nidec Story

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