4 ms·
Toyota's stock is probably undervalued to begin with because of the stupid pedal thing, and this probably makes it extreme. Short-term traders need not apply, t
by ecuzzillo 16y ago
Toyota's stock is probably undervalued to begin with because of the stupid pedal thing, and this probably makes it extreme. Short-term traders need not apply, though.
- lionhearted 16y agoToyota's trading at 21 times earnings on the NYSE... that doesn't seem like a crazy bargain. (Or is there some parallel listing on the Nikkei?)
- patio11 16y agoToyota is listed on the Nikkei. The thing at the NYSE is called an American Depository Receipt (ADR). Basically, it is a coupon that says "Entitles the bearer to two shares of Toyota common stock in Japan." In principle, the two do not necessarily have to move in lockstep. However, because of the massive size, prominence, and stability of Toyota, one would ordinarily expect them to correlate extraordinarily heavily as anything else is an exploitable arbitrage opportunity.
- spitfire 16y agoVarious algorithmic traders play on these dual listings. Put a computer in between (in network terms) and you can trade ahead of the people in either japan or new york. and of course you can also do regular pairs trading (if they drift farther apart).