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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (17786)	9/30/2003 9:20:53 PM
From: Spekulatius	Read Replies (1) \| Respond to of 78525

Euro & BMW. Paul, i agree with you on all counts. BMW will be affected by the rising Euro but not short term. BMW is pretty much hedged for 2003 and 60% currency hedged (whatever that means) for 2004. Coincidentally (?) I do hold BMW in my German account, I have a position in BMW preferred shares which trade at 22.5 Euro compared to 32.5 Euro for the common. In Germany preferred shares constitute property rights identical to common stock and mostly fetch a slightely higher dividend but have no voting rights. because of the large discounts to common (which were only 10% many years ago but are now about 30%) I think the preferred are the better way to go in most cases. BMW is the only investment worthy car stock I have been able to find. PE for the common is about 11, which is high but the ROE for BMW is much better than for mass producers and BMW also has superior growth prospects, IMO. Tis year is a transition year anyways, because of the launch costs for the 5&7 models but i assume that in 2004 (Euro permitting) BMW will show earnings growth again. I don't like DCX any more, because of Chrysler, which is a huge liability, IMO. How did you purchase your BMW shares?