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Earnings Preview for AutoZone

Tue, 24 Nov 2009 18:58:41 GMT

AutoZone (AZO) is expected to release its sales and earnings results for the fiscal first quarter before the opening bell on Dec 8. The Memphis, Tennessee-based retailer of automotive replacement parts reported a 3.1% year-over-year fall in its profit to $236.1 million or $4.43 per share for the fourth quarter of its fiscal 2009 ended Aug 29, 2009.[More...]

GM's Phony Taxpayer Repayment

Mon, 23 Nov 2009 13:46:49 GMT

This comes via Deal Book at the New York Times. The company’s chief executive, Fritz Henderson, called the repayment plan “a personal commitment.” The Obama administration, wardens of the 60 percent taxpayer stake in the company, declared itself “encouraged” by the news.[More...]

Auto Race To The Bottom

Thu, 19 Nov 2009 16:44:08 GMT

This guest post was contributed by Raj Date, head of the Cambridge Winter Center for Financial Institutions Policy and a former McKinsey consultant, bank senior executive, and Wall Street managing director.[More...]

GM's Loss Subsides

Tue, 17 Nov 2009 19:27:00 GMT

General Motors (hereafter, GM) -- presently, Motors Liquidation Company (MTLQQ) -- posted a narrower loss in the third quarter (Jul 10 - Sep 30) compared with the results depicted by "Old GM" in the first quarter, before the company was transformed by a stay in Chapter 11.[More...]

George Soros Reveals Stake In Ford (F), Adds To Walmart (WMT), Cuts Position In Petrobras (PBR)

Tue, 17 Nov 2009 15:48:51 GMT

It's that time of quarter - when the whales of investing have to reveal what they are doing on the long side to the SEC (they can still keep secret their shorts). There are a lot of websites that will be looking at these disclosures in the next 48 hours so we'll just focus on a few. When I did some "Googling" on George Soros last night I was taken aback how controversial a figure this guy is; there are more stories about his politics than investing. I could care less about his politics, he is a smart guy who uhhh... admittedly plays the gray side of the rule book at times, but Goldman Sachs (GS) is worshiped for the same behavior.[More...]

GMAC Replaces One Failure With Another

Mon, 16 Nov 2009 20:52:05 GMT

The stench from the feces behind the scenes is getting unbearable. At least it is to those who have direct nasal exposure to the reality floating in the financial sewers, ungrated by the fecal filters of CNBC. The latest casualty of eating from the apple of toxic asset knowledge is GMAC CEO Al de Molina, who is being replaced with a man truly perfect for the job: a director of failed CIT and a former executive of the soon-to-fail toxic cesspool known as GE Capital, Mike Carpenter. From Al de Molina's professional obit:[More...]

Surging Auto Sales Drive Retail Purchases Higher

Mon, 16 Nov 2009 20:30:11 GMT

U.S. retail sales rose unexpectedly in October as vehicle sales rebounded from a deep slump. However, non-auto sales rose less than forecast, suggesting consumers remain cautious as unemployment surges amid a “jobless recovery.”[More...]

Is Mexico The 'New' China?

Fri, 13 Nov 2009 13:31:35 GMT

When it comes to global manufacturing, Mexico is quickly emerging as the “new” China. According to corporate consultant AlixPartners, Mexico has leapfrogged China to be ranked as the cheapest country in the world for companies looking to manufacture products for the U.S. market. India is now No. 2, followed by China and then Brazil.[More...]

Goodyear Tire (NYSE:GT): Upgraded To Buy at Goldman Sachs

Fri, 13 Nov 2009 12:41:58 GMT

Goldman Sachs is making an interesting call on Goodyear Tire (NYSE:GT) upgrading it to a Buy from Neutral with a 6-month target of $19 (prev. $17).[More...]

Nissan Building World's Cheapest Car - Analyst Blog

Wed, 11 Nov 2009 16:50:20 GMT

Carlos Ghosn, the Chief Executive of the alliance Renault and Nissan (NSANY), has revealed that the company will roll out a small car with its Indian partner, Bajaj Auto, that will be cheaper than any other car in India -- and in the world. The car, which is scheduled for launch in India in 2012, would beat India’s largest automaker Tata Motors’ Nano both in terms of pricing and fuel-efficiency, and become the world's cheapest car.[More...]

U.S. Companies Finding More Consistent Growth Overseas

Tue, 10 Nov 2009 13:04:54 GMT

By Bob Blandeburgo Associate Editor Money Morning McDonalds Corp. (NYSE: MCD) yesterday (Monday) became the latest in a long line of U.S. companies to find growth overseas as domestic growth... Money Morning is here to help investors profit handsomely on this seismic shift in the global economy. Money moves markets. But Money Morning lets you move first. [More...]

Has Asia Dethroned Detroit as the Auto Sector Leader?

Fri, 06 Nov 2009 14:13:56 GMT

Back in May I recommended that readers should buy shares in Ford Motor Co. (NYSE: F) on the grounds that the U.S. carmaker would gain market share from the bankrupt General Motors Corp. (OTC: MTLQQ) and Chrysler Group LLC. Ford’s third-quarter profit and healthy October sales growth show I called that one right. One doesn’t like to blow one’s own trumpet excessively, but if you’d followed my advice in May, you would today be sitting on a profit of nearly 50%.[More...]

Ford's Main Problem: The UAW's Crippling Job Classifications And Work Rules

Fri, 06 Nov 2009 13:52:50 GMT

Ford's 2,215 page 2007 master contract with the UAW 1941 UAW-Ford contract[More...]

Toyota Joins Ford And Swings To A Surprise Profit

Thu, 05 Nov 2009 20:23:49 GMT

“This seems to be the quarter when automakers are turning in a better than expected numbers. As with many other automakers, here is what Toyota had today, a surprise profit in its quarterly earnings released early this morning, mid morning in Japan, a profit of $242 million that’s down 84% from the quarter a year ago. Sales, $50 billion, down 24%.[More...]

Economic Nationalism And GM’s Decision To Keep Opel And Vauxhall

Thu, 05 Nov 2009 16:38:52 GMT

I have been reading press accounts of the GM decision to back out of the Opel/Vauxhall sale to the Magna/Sberbank consortium from various countries. There are a lot of different perspectives on this event in the U.S., Belgium, Spain, Germany, Russia, the U.K and elsewhere, because a lot of players are involved.[More...]

TRW Automotive (NYSE: TRW): Upgraded to Buy at Keybanc with a $29 price target

Thu, 05 Nov 2009 13:13:02 GMT

TRW Automotive (NYSE:TRW) is getting positive commentary from two firms this morning following results out yesterday morning: - Keybanc Capital Markets is upgrading TRW to a Buy from Hold and is initiating a $29 price target on the name. According to the analyst the upgrade is based on their belief that: 1) as global light vehicle production returns to normalized levels, TRW's operating margins are likely to be higher than their historical range; 2) TRW will likely generate solid free cash flow going forward, which they believe will be used to reduce debt, interest expense and improve the Company's balance sheet; and 3) there is good possibility the Company's U.S. operations could become profitable once production returns to normalized levels and,[More...]

Auto Sales Stabilize In October

Tue, 03 Nov 2009 19:56:11 GMT

“…And GM really making real progress with the SUV’s. I mean, I have got to tell you, they have really come alive in that segment, they now lead Ford in that segment. Other winners just looking at everybody, not just GM, Cadillac is up. Ford Taurus sales up 41%. That’s a winner for Ford now and Mulally. The only Chrysler Model to be up month over month, 2008 to 2009 in October was the Dodge Caravan, sales of the Caravan were up 8%. All in all, guys, pretty good news for the auto sector this October.” — Fox Business Network 11/3/2009[More...]

Ford Reports $997 Million Profit As Manufacturing Heats Up

Tue, 03 Nov 2009 01:12:23 GMT

By Don Miller Associate Editor Money Morning Ford Motor Co. (NYSE: F), the only major U.S. automaker to avoid bankruptcy in 2009, said yesterday (Monday) that an aggressive cost-cutting campaign,... Money Morning is here to help investors profit handsomely on this seismic shift in the global economy. Money moves markets. But Money Morning lets you move first. [More...]

Closing: Late Charge Allows Stocks To End Volatile Trade On Upbeat Note

Mon, 02 Nov 2009 20:35:00 GMT

A late-day charge landed all major averages in positive territory. The DJIA advances 0.7%. The S&P 500 is up 0.6%. The Nasdaq Composite is up 0.2%.[More...]

The GM (Motors Liquidation) Anomaly

Mon, 02 Nov 2009 00:35:29 GMT

A few months ago, I wrote a series of posts about anomalies in the pricing of Citigroup common and preferred stock (see here for the final installment). At the time, Citi’s common stock traded at prices that appeared to be way too way relative to the preferred stock (which has since converted into common).[More...]

GMAC Has Been Nationalized

Fri, 30 Oct 2009 21:43:18 GMT

And you thought the bailouts were over and market discipline might be restored. Not a chance – the bailouts will continue, come hell or high water. The latest demonstration of this is GMAC, where the government will now be majority owner. GMAC has officially been nationalized. Now the government is running auto financing in addition to running the companies making the cars.[More...]

When Junk Is Not Junk

Thu, 29 Oct 2009 18:50:20 GMT

Just eighteen months ago, you would have expected to see a story like the one excerpted below in The Onion, the satire news outfit that bills itself as "America's Finest News Source". But, this being 2009, this report($) along with others like it now appear in the Wall Street Journal, the nation's most widely read daily paper, recently surpassing USA Today.[More...]

China Launches Retaliatory Investigation Into U.S Auto Subsidies

Thu, 29 Oct 2009 16:42:51 GMT

China has sent yet another public signal that it is unhappy with the U.S. and its trade policy by prepping an investigation into alleged illegal auto subsidies by the U.S. government.[More...]