Salient to Investors:

The final value of fines and lawsuits is not yet known so it is too early to bottom-fish Volkswagen stock. Cheating on emissions rules has affected 11 million VWs worldwide and it is not yet known how many countries’ regulators will get involved.

George Young at Villere looks for special situation stocks with single events that are assessable and containable, like Carnival and Apple, but unlike stocks like BP, where it took 3 months to cap the well and the ultimate total of fines and civil suits was indeterminable, and Volkswagen. Young prefers US companies because of GAAP accounting and liquidity and opportunities for diversification.

When picking stocks on special circumstances, look for growth and not just recovery plays.

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