Is Toyota undervalued because of the recall? I am not too sure about it. The fix is in. If it really works, then it can start to sell new cars again in a few weeks. The total costs probably run to 5-10 billion dollars (including the loss sales). However, the law suits are piling on. It could cost anywhere between a few hundred million dollars to billions and billions dollars. It is going to be there for long time. I will not touch Toyota at this moment.
China is going to accelerate the pace of acquiring oversea energy, base metal, iron ore, potash, and precious metal companies. They put aside 20-30 billion dollar aside for this year. Given the political sensitivity of Chinese takeover, I will assume the target company will be small to medium caps. They like resources locate in central Asia, Africa and south America. I will put HBM and S in Canada on my radar screen.
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We need to go after the professulas who inflicted America-hating Trotskyite Deming Juran Japanaese participative management on this country! "Industrial engineering" is soviet economics because they don't believe in regular economics.
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