TM looks like it's a buy too, esp. imo, if p/e drops under 10. Just seems more expensive now - p/e, p/sales - than GM.
I read where Toyota's quality is slipping - their experts are thinned as new overseas plants are opened.
I'm hoping GM can learn from TM. GM's quality is alleged to be improving (but still far(?) behind TM).
I don't care about hybrid technology. To me it's about product and financing. If GM can build cars that people want instead of rental-car fleet-vehicle stuff, GM ought to do okay. I don't know that hybrid technology is of great concern to car shoppers. As a strength, GM has a terrific financing arm.
I don't doubt that in 10 years Toyota could be the #1 automobile manufacturer in the world in terms of # cars sold. It's capitalization already exceeds GM, F, & DCX combined. ($125.3B>21.4B+23.8B+41.6B). A buy of TM stock is a bet that the winner will continue to win. My bet on GM (and F) is that the not-so-sharp companies will muddle through and that there's more upside to GM stock (next 2-3 years) than there is with TM. Although otoh, there might be more downside with GM than TM if car sales plummet because of high gas prices.
Just a very small position for me, although I have several stocks of companies dependent on the car business, e.g. auto retailers, OEMs to the big three, parts suppliers, auction houses, auto insurers, auto related reit, financing companies (aside: upped my small ACF position a little today).
I may yet add TM. |
