Dow Jones Industrial Average 29,348.10 (UP) Week ending 1-17-2020 - S & P 500 Average 3,329.62
Fiat Chrysler Automobiles N.V. has been a very inexpensive stock here for years with a PE of 7.4 and a forward PE of 4.5. (IBD has the Automotive Sector ranked at #number 3 currently.) FCAU has been touted and owned by value investors like Monish Pabrai of Pabrai Investments and also by Bill Nygren at OakMark Funds. Stocks in the automotive sector can move like molasses in January, but now I think there is an upcoming catalyst and an opportunity to move the share price substantially forward.
Fiat Chrysler Automobiles, (Symbol FCAU, $13.75) is in discussions with FoxConn Technology, the large Apple I-Phone manufacturer and assembler, to form a 50/50 partnership to build and sell electric cars to China. Voila! I think this gives the stock the fuel to rise up in 2020. Varoom!
FCAU has many nice brands in house. It also has a sweet 5.26% dividend kicker for you while you wait for bigger things to happen. I picked some shares up myself.
I also picked up some of one of my 2020 yearly picks, Good Year Tire & Rubber, (symbol GT), which was at a bargain price of $14.93. I believe Good Year is moving towards being a technology company and offering other services, rather than just being a high end commodity tire company.
Just remember whether your car runs on Gasoline, Electricity, Propane, or Hydrogen, it will still need tires, which are a product that wears out over time and needs to be replaced.
Be patient. Wait for the right price to buy.
Freewilly
Fiat Chrysler Automobiles, (Symbol FCAU, $13.75) is in discussions with FoxConn Technology, the large Apple I-Phone manufacturer and assembler, to form a 50/50 partnership to build and sell electric cars to China. Voila! I think this gives the stock the fuel to rise up in 2020. Varoom!
I also picked up some of one of my 2020 yearly picks, Good Year Tire & Rubber, (symbol GT), which was at a bargain price of $14.93. I believe Good Year is moving towards being a technology company and offering other services, rather than just being a high end commodity tire company.
Just remember whether your car runs on Gasoline, Electricity, Propane, or Hydrogen, it will still need tires, which are a product that wears out over time and needs to be replaced.
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| "January is a great time to review your 401K contribution. Pay yourself first!" |
Be patient. Wait for the right price to buy.
Freewilly
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