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Strategies & Market Trends : Value Investing
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To: Paul Senior who wrote (20153)12/3/2004 12:51:23 AM
From: Tapcon   of 78525
 
it seems to me that going with GM now and NOT betting on TM at current price (i.e ignoring it as an investment) is like betting that Toyota will screw up or somehow begin to lose market share, while expecting that GM can staunch or reverse its multi-year market share losses.

Paul, it looks to me that it is not so much betting that Toyota will screw up but rather betting that deteriorating value of US buck will squeeze Toyota margins on existing US inventory and on any assembly parts imported from Canada, Japan and elsewhere.

To the extent that GM sells outside US, they should benefit by the deteriorating value of US buck.

But FWIW, I can't see how the auto industry looks like a good investment with increasing interest rates on the horizon. Don't these companies only make money on their financing these days?
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