| Korean Automakers Profit from Cash for Clunkers Research Recap submits: Cash for Clunkers a Trojan Horse for Lesser Known Brands Korea’s Hyundai (HYMLF.PK) and its sibling Kia Motors recently reported strong results, driven in part by the US cash for clunkers and other car scrappage schemes. Hyundai reported record profits on Oct 22, while Kia said Friday it swung to a third-quarter profit from losses in the year-earlier period, earning rating upgrades from Credit Suisse to neutral from underperform, and from Macquarie Research to outperform from underperform.Complete Story » seekingalpha.com |
Automotive Sector: Riskiest and Least Risky Companies Research Recap submits: Audit Integrity says Oshkosh Corporation (OSK) and BorgWarner (BWA) are among riskiest North American public companies in the automotive sector, based on their “Very Aggressive” corporate governance practices. Borg Warner is also on Audit Integrity’s Investor Watchlist. Among other factors, the company was “Flagged for incentive compensation of CEO & CFO (91st percentile), ratio of CEO to CFO compensation (83rd percentile), and Chairman is CEO (since June 2003).” However, Morningstar noted on Oct 29 that BorgWarner’s investment-grade balance sheet’s net debt/capital ratio had declined to 21% from 25% at year-end. “Only healthy firms can strengthen their balance sheet in a recession rather than increase leverage to survive. If the positive scenario comes true, then BorgWarner can quickly increase production without hiring more people. Despite the recent decline in auto stock prices, we think BorgWarner is one of the best parts suppliers we cover. The firm’s products should see higher demand for years as governments keep imposing higher fuel economy regulations.”Complete Story » seekingalpha.com |
Is Tata's Nano the New Yugo? Robert Salomon submits: Don’t know how many of you caught the recent news, but a new Nano (Tata’s ultra-cheap car) spontaneously burst into flames last week soon after its owner drove it off the lot (see Car Fire Raises Safety Concerns for details and a FIERY photo). When it was launched less than a year ago, the $2,500 Tata Nano was promoted as a safe, ultra-cheap car for poor Indians, an alternative to the motorbikes that zoom precariously around the country.Complete Story » seekingalpha.com |
What's Driving Toyota Share Price? Bud Labitan submitsToyota Motor Corporation (TM) primarily conducts business in the automotive industry. Toyota also conducts business in the finance and other industries. It is organized in three segments: automotive operations, financial services operations and all other operations. Toyota’s automotive operations include the design, manufacture, assembly and sale of passenger cars, minivans and commercial vehicles, such as trucks and related parts and accessories. Toyota’s financial services business consists primarily of providing financing to dealers and their customers for the purchase or lease of Toyota vehicles. Toyota’s financial services also provide retail leasing through the purchase of lease contracts originated by Toyota dealers. Related to Toyota’s automotive operations is its development of intelligent transport systems (ITS). Toyota’s all other operations business segment includes the design and manufacture of prefabricated housing and information technology related businesses.Does TM make for an intelligent investment or intelligent speculation today?Complete Story » seekingalpha.com |
Maybe the 787 Isn’t Boeing’s Biggest Problem YCHARTS.com submits: Boeing (BA) delayed the delivery of its first 787 Dreamliner yet again last week (Aug. 27), to first-quarter 2011, meaning the ambitious effort to build a fuel-efficient new wide body plane is more than two years behind schedule. The plane was by now supposed to be boosting Boeing sales, but instead revenue was down 9% year over year. BA Stock ChartComplete Story » seekingalpha.com |