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Penny Stock DD

U.S.-listed shares of Autoliv (ALV.N) dropped more than 10 percent on Friday after the world’s largest airbag maker said probes from U.S. and European regulators could hurt its earnings.

The news prompted Buckingham Research Group to downgrade the stock to neutral, with analyst Joseph Amaturo citing too much “uncertainty” stemming from the investigation by the U.S. Department of Justice and European Commission.

“We are unable to accurately quantify the financial impact of this investigation, as there is limited knowledge regarding the scope of revenue and products involved,” Amaturo wrote.

He added: “Consequently, we believe this issue, which is unquantifiable at this juncture, will limit the upside in the stock even with expected improved near-term fundamentals.”

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Regards,

Don

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