Topic: Growth Stocks

The Wall Street Stock Forecaster Hotline – Friday, February 5, 2010

Article Excerpt

TOYOTA MOTOR CO. ADRs, $74.71, New York symbol TM, fell again week after U.S. highway-safety regulators launched a formal investigation into reports of problems with the brakes on its hybrid vehicles, including its top-selling Prius hybrid compact car. Last week, Toyota recalled 4.1 million vehicles to fix a problem that could cause the gas pedal to stick in the downward position. The stock has dropped by 15% since the gas-pedal problem was first reported. The company estimates that the recall will cost it up to $2 billion. To put this figure in context, Toyota earned $1.7 billion in its third quarter, which ended December 31, 2009. That’s a big improvement over the $1.7 billion it lost a year earlier. The company did not report per-share earnings figures. Sales rose 17.5%, to $58.8 billion from $50.0 billion. The bad publicity will hurt Toyota’s sales and market share, at least in the short-term. However, its quick response should limit any permanent damage to its reputation…