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

To: Brian Sullivan who wrote (56608)	1/10/2016 2:48:24 PM
From: Graham Osborn	Respond to of 78717

Yes, F's dividend yield has almost recovered to precrisis levels. WSJ had a good article last week on new auto financing packages. The supply of used cars is still relatively low. What happens when that mix shifts in a few years? Not to mention continued rate hikes and a consumer debt securitization market that is looking increasingly frothy. The dividend yield will be less important than whether the market anticipates a dividend cut. Have a look at F's price vs D/E the past 20 years.. I would say the market sees something.

To: Brian Sullivan who wrote (56608)	1/12/2016 10:06:54 AM
From: Paul Senior	Respond to of 78717

GM/auto retailers: I'm waiting to see if GM stock will fall a bit further. If so, I'll add to my position. Auto retail stocks continue to get clobbered. I've been adding shares my positions in these. More ABG today for example. finance.yahoo.com

To: Brian Sullivan who wrote (56608)	1/22/2016 1:04:06 PM
From: Paul Senior	Respond to of 78717

GM: I'll take more shares here. Positive blurb from Barron's: "General Motors ( GM ) shares are down 12% year-to-date. Earnings per share are expected to climb 14%, and the consensus has been rising. Shares now go for just five times the 2016 earnings forecast. Last week, GM raised its 2016 earnings guidance and expanded its authorized share repurchase to $19 billion to be spent through 2017. That’s roughly 20% of its stock market value. It also boosted its dividend. The new payment gives shares a yield of over 5%." Imo, too soon to be concerned about an oversupply of used cars in future with the many cars coming off leases. And I'm even less concerned about large amount of subprime auto loans. I'll take now what the market's giving me now: p/e 5 & yield 5% for GM works for me. (Although otoh...I've found it tough to make money in GM in past, so maybe I'm wrong here again.)