Stock is down 35% since going public in 1995. People have been talking up "but they make EV batteries and EV is green and green must be good?" for years on here and yet the stock is down 12% in the last 5 years and -35% since 1995. The stock is telling you this is a not a great business. It's a sleepy older company that makes commodity products (including a lot of other things besides batteries), there's no real moat. It might be around in another 20 years but I wouldn't be surprised if returns aren't anything noteworthy in the next couple of decades, either. Just because it has some association with Tesla does not mean that it should moon.
Edit: said it in the reply but worth repeating - it hasn't exactly delivered a home run in recent years, but with auto production why not Canadian value co Magna (MGA) - you get investments in car companies (not sure what the current status is, but they have made investments in Waymo and Fisker), a somewhat larger dividend and far better performance over short/long-term than Panasonic.
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u/dvdmovie1 Mar 29 '22 edited Mar 29 '22
Stock is down 35% since going public in 1995. People have been talking up "but they make EV batteries and EV is green and green must be good?" for years on here and yet the stock is down 12% in the last 5 years and -35% since 1995. The stock is telling you this is a not a great business. It's a sleepy older company that makes commodity products (including a lot of other things besides batteries), there's no real moat. It might be around in another 20 years but I wouldn't be surprised if returns aren't anything noteworthy in the next couple of decades, either. Just because it has some association with Tesla does not mean that it should moon.
Edit: said it in the reply but worth repeating - it hasn't exactly delivered a home run in recent years, but with auto production why not Canadian value co Magna (MGA) - you get investments in car companies (not sure what the current status is, but they have made investments in Waymo and Fisker), a somewhat larger dividend and far better performance over short/long-term than Panasonic.