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

To: Paul Senior who wrote (48510)	6/29/2012 6:01:43 PM
From: Spekulatius	Read Replies (2) \| Respond to of 78530

re MGDDY and European car sales, the news sources I am following state that European car sales are very weak in South Europe (no surprise) but it seems to be spreading to other countries as well. French car companies (Renault, Peugeot) reported very weak results and rebates are increasing in Germany too which indicates weaker sales. Ford just reported higher losses in Europe too from their subsidy. Luxury car sales are still OK but I can see that changing as well. the messages from China are mixed - the domestic chinese car companies are reporting very weak results while some companies like GM are still reporting solid results. One thing that might be helping tire manufacturers are the much weaker rubber prices but I suspect these savings will have to be passed on, since they passed on price gains too pretty much without delay (unlike in the past). I don't have hard numbers but I get a whiff of a lot of headwinds from European automotive from a lot of directions. I suspect that some of the weak share performance of ITT is related to automotive exposure (25% and quite a bit of that in Europe) for example. Even outside the automotive sector, I suspect we will see a lot of earnings warnings in the industrial and material sector after the 4th of July week.