Car manufacturers: Spekulatius, or anyone else here who might have an opinion about these companies, are any of the car company stocks values at current prices?
Spekulatius, I'm looking now at HMC. Too late now perhaps? Stock's moved up roughly from your April post of around $16 to almost $22, so that's a nice percentage gain! I shoulda checked GM when it was closer to lows, and I was certainly wrong not to buy TM (Toyota) when I considered it after it showed on new lows list. I was scared off from Ford because of its very high debt load and to me, tired product line. But what you said about HMC in April might still apply: "A PE of less than 10 is reasonable, given the stellar LT performance,attrctive products and the low leverage."
Regarding HMC: In past years it has often sold for higher p/e's, higher p/sales, and higher p/book values that it is now. When I crank HMC's numbers into my ROE and margin models, it shows up as borderline buys in both models. So I'm considering making a small buy.
Toyota's my favorite company because of their manufacturing prowess: It's simply spectacular, imo.
I like Honda because of their expertise in motors, which has allowed them extensions from motorcycles to cars to boats and grass cutters. Both companies have the same profit margins and operating margins, according to Yahoo. |
