| Cash for Clunkers: Here Comes the Hangover Mark J. Perry submits: "Cash for clunkers" might have "juiced up" new vehicle sales and provided some initial and temporary stimulus to the economy, but there are some secondary costs now surfacing in the "hangover" period:1. Shortage of cheap used vehicles and rising prices (see chart above). Complete Story » seekingalpha.com |
Paccar: Currently Overvalued Value Expectations submits: The Applied Finance Group’s (AFG’s) valuation techniques help investors identify and take advantage of mispriced securities in the market. One way investors can identify over or undervalued stocks is by using AFG’s Intrinsic Value Chart, which displays a company’s intrinsic value relative to its trading range and helps entry/exit points. This easy to read chart identifies how far a stock’s trading range deviates from its intrinsic value (target price assuming immediate decay), which helps you recognize potentially mispriced stocks and pursue long and short opportunities. AFG’s Intrinsic Value Chart also contains a company’s Value Score (ranked valuation attractiveness), Economic Margin Change (expected improvement of economic profitability), and Accuracy (how well AFG’s default valuation has tracked the company) information. AFG’s valuation framework estimates a company’s equity value by subtracting debt and other liabilities from the total enterprise value. The total enterprise value is estimated by discounting projected future cash flows, utilizing analyst consensus, Economic Margin methodology, and the Decay concept which addresses the perpetuity bias in the traditional DCF model.Complete Story » seekingalpha.com |
Ford Motor Credit Prices Notes but Baby Bonds More Attractive Michael Terry submits:On the tape yesterday about Ford (F) (B1/B+) (Bloomberg): Ford Motor Co. sold $1.75 billion of five-year notes today, according to data compiled by Bloomberg.Complete Story » seekingalpha.com |
Auto Adulation?: Light Vehicle Sales for April 2010 Sold At The Top submits: Although Wednesday’s vehicle sales results came in generally better than expected, putting the current results together with recent historic trends should leave one with a less-than-bullish outlook for autos.Looking at the Department of Commerce light vehicle sales series you can see that although sales appear to be on a tear recently, the latest results are comped on a year-over-year basis against the horrendously weak sales seen in early 2009.Complete Story » seekingalpha.com |
Defense Stocks: Because War Is a Constant Craig Walendziak submits:Only three things are guaranteed in life: Death, Taxes, and Warfare. No matter how barbaric, no matter how illogical, no matter what political party is in office, America is perpetually at war. For the last century, there has not been even one decade where we were not involved in a major conflict, building up for a major conflict, or engaging in covert warfare. This is not meant to be a political article. It is not meant to open a debate if war is right or wrong. I am simply stating the facts. War is an extension of policy that America is willing to utilize. Take a look at the American Defense Spending for the last 20 years: Complete Story » seekingalpha.com |