Nidec's Motor Story Looking Better And Better

I don't know that I'll ever bring myself to the point of saying "valuation doesn't matter", but companies and stocks like Nidec (OTCPK:NJDCY) (6594.TO) do sometimes push me in that direction. It's tough to see how Nidec is undervalued relative to reasonable expectations, but I believe investors need to at least consider the possibility that Nidec will generate "unreasonable" revenue and profit growth in the coming years on the back of a very strong technology portfolio in electric motors.

In the here and now, Nidec is struggling to meet sell-side earnings expectations, as stronger than expected order inflow and customer interest, particularly in auto traction motors and e-axles, lead the company to accelerate its product development and ramp up spending. I believe this will be money well spent, but Nidec's valuation wouldn't lead you to think it's exactly an undiscovered story, even if it's not a household name among U.S. investors.

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Nidec's Motor Story Looking Better And Better