Showing posts with label Stocks - Automotive. Show all posts
Showing posts with label Stocks - Automotive. Show all posts

Sunday, February 27, 2011

"Here is a double barrel super charged hemi pair of stocks, General Motors and Ford Motor Company, ready to rock your portfolio"

Dow Jones Industrial Average  12130.45  (Down)  Week ending 02-25-2011

I don't know who lent money to who, or if or when it will be paid back, none of that matters now. Water under the bridge. They pulled a "wall street", and got away with it, so be it. That is the former stockholders problem. The USA needs General Motors.

General Motors (symbol GM , $33.25) now is back with the pedal to the metal. This quarter, 3.7 Billion in earnings and $4,300 dollar bonus checks going to the working employees for productivity. This is the way that it used to work in the good old days. Everyone makes money. Everyone is happy.

Fueled by international sales, GM is projecting earnings in 2011 of $4.20 per share and 2012 earnings of $5.27 per share. There is only 9.6% institutional participation in the stock right now so there are allot of people asleep at the wheel right now who are managing pension funds and mutual funds.You actually need to go to the web page to see how staggeringly well they are doing in sales across all product lines. See GM sales-production . GM is a strong buy here after the oil scare discount applied last week.

Ford Motor Company (Symbol F, $15.07) the other barrel of this double shot pick didn't take any money from the government.If you haven't been paying attention Alan R. Mulally has delivered to stock holders a one year total return of 28.4% and a 3 year total return of 130.8%. The launch of the Ford Focus compact car on a shared platform, or underpinning, around the world allows the car to be made in Asia, Europe and North America using 80 percent common parts and 75 percent of the same supply base. North American sales of cars built from the Focus-sized platform, already expected to rise this year, will skyrocket if oil and gasoline prices spike to more than $4 per gallon as they did in 2008. Here is the full financial picture for Ford:  FORD Investor Overview. A look at the fundamentals shows Ford earnings for 2011 are projected to be $1.89 per share and for 2012 projects at $1.98 per share.  Another strong buy.











Just for the record and correctness I mentioned Hemi in my title which is totally associated with Mopar and Chrysler products. Pictured below is Mickey Thompson's 427 Ford/Hemi Engine - Mickey's Mystery Motor. Yes, It's A Hemi. No, It's Not A Chrysler. It's A Ford. This Rare piece was Created By Mickey Thompson 46 Years Ago. So get off your horse and settle down now.


That engine you could hear and it is a wonderful sound. They could record it and put it in the 2012 electric Ford Focus, that would turn heads!

Freewilly


Saturday, August 28, 2010

Request Weekend - Part II - takes us to startup Tesla Motors in California which just went public in late June 2010

Dow Jones 10,151  (Down)  Week ending August 27th

Tesla Roadster
Well what a perfect way to end the summer
to put the top down and talk about and take a cruise in the Tesla Roadster the Electric Beauty to the right. http://www.teslamotors.com/roadster
   To be honest when I got this request I was thinking in my head "Delorean, they'll be out of business in a year" but as I started doing my investigation I discovered reasons that I think they will ultimately be successful.

 TESLA MOTORS, INC (Symbol TSLA, $19.70) stock debuted at $17.00 and the low so far on the stock has been $14.98 and the high $30.42 . The stock had it first quarterly report and like most start ups it recorded a loss in it's first quarterly report of $5.08 per share. They have a profitable business model but just needed to bring sales up to a point where they cover their high SGA and Research and development expenses. You almost have to think about these guys like they are a bio-tech stock trying to find the cure for cancer, except they are trying to find the cure for our dependence on foreign oil. It takes time and money to get going, so keep an eye on cash-burn.

     Why will they be successful? People are fed up. They are angry about the oil environmental disaster in the Gulf of Mexico. They are sick and tired of being held hostage by the oil companies from foreign countries and having to pay ever increasing prices. You push people hard enough and they dig their heels in to fight back. If you drive one of these vehicles 15 years you save over $20,000 in gas and oil cost , around $1300 per year at current prices.

       Some other reasons, there are a lot of mutual funds looking for "green" investments like this and are willing to hold this type of investment for the long term. Also it appears that they have a lower cost Model S version (pictured left) to get their pricing down a bit.  Also don't forget that all the cool new stuff starts in California and then heads east, like the personal computerJimmy Hendrix, The Grateful Dead and The Beach Boys. 

Tony Helmholdt inventor of twin powered
Electric motorcycle 
I also found an article about a 23-year-old named Tony Helmholdt who works for Tesla Motors in Chicago.  About 25 or 30 Chicago area drivers own Teslas, and Helmholdt is helping owners maintain their $100,000 sports cars. But more importantly he has invented and built a a twin-powered electric motorcycle. Now there would be something with a mass market appeal that would give Tesla the cash flow to sustain their car line until sales ramp up. I have no idea if or when Tesla would produce this item. What is certainly clear is that all this electric stuff is coming soon so get used to it.

On purchasing the stock, I would would wait until October 2010 since the earnings report is already out and a lot of the newbies that bought it on the public offering will get impatient and probably dump it. I would look to buy it as a 3 year long term investment in the price range of  $15 - 17 per share range, which I think you will see again. This is, be warned, a High-Risk Investment.

So honk a horn, so I hear you coming and take a cruise in a Tesla Roadster!
Joe, you should test drive a Roadster on that road that goes between San Mateo and Half Moon Bay. While you are in San Mateo stop in at Nick's Deli if it is still there. Try the Chicken salad sandwich.

Freewilly