I think so! The fundamentals seem to be strong. There's some concern about dollar/yen exchange, of course. Well, Toyota was up today regardless. Any thoughts why Honda went south?
At any rate, I'll be loading on HMC shares if they ever go under $30 mark.
During last few days days I was buying another automotive stock (Tata Motors - TTM). I think there's a good rebound in making. Hope to ride it to low 20s. I used to be invested heavily in TTM. I made some good money and got out of it just in time... Now I' back and I'm keeping my fingers crossed :)
the problem isn't hmc. the problem is the dollar.
owning foreign stocks suxxxxx when the dollar gets the crap kicked out of it.
Just as the USSR learned there's more than one way to skin a cat, I guess one day we'll learn.
"owning foreign stocks suxxxxx when the dollar gets the crap kicked out of it."
The level of understanding on this board has declined significantly as of late. Owning foreign stocks that don't get a hge portion of their revenue from the US is generally a GREAT thing when the dollar is declining. Owning foreign stocks who build stuff in a foreign country and sell a significant amount of that stuff in the US isn't so good as their profit margins can go to Helena Handbasket.
Something else is going on here. All the Jap carmakers are sinking. Take a look at what is happening to Toyota. I suspect that sales in the US have taken a nose-dive and insiders are responding to that... I see Honda heading to the mid/high 20's before there's upside again...
Are they lying to us about the numbers then?
Honda profit rises 8.8 percent
Strong world sales lead company to increase year's forecast
TOKYO: Profit at Honda climbed 8.8 percent for the most recent quarter on strong sales in North America, Europe and Asia, prompting the company, Japan's No.2 carmaker, to raise its full- year profit forecast slightly Wednesday.
Honda Motor, which makes Accord and Civic cars, reported group net profit of �144.8 billion, or $1.2 billion, for October-December, up from �133.1 billion the same period a year earlier. It was the first time in three years that earnings in the fiscal third quarter had risen from the earlier year.
Quarterly sales jumped 12 percent to �2.77 trillion, marking the seventh straight year of record sales for the fiscal third quarter.
Rising gasoline prices have generally worked as a plus for Japanese automakers like Honda and Toyota Motor because they have a reputation for good fuel economy.
Honda said auto sales were healthy around the world, but especially in North America, where the Accord compact car and CR-V sports utility vehicle sold briskly, as well as in China, where the auto market is growing.
Honda surpassed Nissan Motor to regain the No.2 spot among Japanese auto makers last year as measured by global vehicle production. The last time Honda was No.2 in Japan was 2003.
For the year through March, Honda lifted its profit forecast to �560 billion, up from its earlier forecast of �555 billion. However, that is down from the previous fiscal year's net profit of �597 billion.
Honda kept its sales forecast for the full year unchanged at �11.1 trillion, up 12 percent from the previous year.
Honda sold 915,000 vehicles during the latest quarter, up 12.1 percent from the same period a year earlier.
Although vehicle sales were flat in Japan, they surged 22 percent in Europe, 32.5 percent in Asia and 8.5 percent in North America, the company said.
A weak yen also boosted Honda's earnings, adding �10.6 billion during the quarter.
For the first nine months of the fiscal year, Honda earned a �416.1 billion profit, up 10.2 percent from 2005.
Healthy overseas sales, cost cuts and a weak yen, which boosts the value of overseas earnings, offset soaring material costs, discounts called incentives in North America and other expenses.
Honda sold 2.69 million automobiles during the nine months, up 8.2 percent from 2005. It expects to sell 3.39 million vehicles for the year ending March 31, up 8.1 percent from the previous fiscal year.
Toyota, which is closing in on General Motors of the United States as the world's No. 1 automaker in global vehicle production and sales, reports earnings next week, while Nissan reports earnings Friday.
Honda shares, which have gained nearly two-thirds in value over the past year, closed down 1.3 percent at �4,750 on Wednesday.
According to latest sales reports in WSJ, Honda CRV and Honda Fit are ranked #1 and #2 in sales this last month(no Toyota product in Top 10).
I can't imagine that sales in America are decreasing with this kind of action!
The CRV and fit are nowhere near 1 and 2 in sales in the US. the civic,accord,camery,f-series,silverado etc. all sell way more
So, what were they saying? They were #1 and #2 in Sales growth rate?
that article is over 2 months old and reflects q4 results. that's an eternity in the stock market.. ironically at the bottom of the article you'll find that despite those results the stock went down 1.3% for the day. i'm not bashing honda, don't get me wrong. i just think there's something going on here that's not obvious to american investors.
there's absolutely no reason this stock (or TM for that matter) should trade in the current range. the japanese market doens't seem to have any momentum either, compared to europe or the rest of the asian stock markets. i stick with my earlier theory that until the japanese investors get some b*lls and start buying their stocks, we'll see a gradual decline in japanese equities as foreign purchases (which is where most sales are coming from these days) aren't enough to sustain the momentum. why bother with japanese stocks when you can get double increases on a monthly basis with china or india... (fyi, shanghai is up 25% since the mega chinese fart in late feb that rattled the world...) hang seng, korea, malaysia, etc. all doing much better than tokyo. so my point is why bother with fickle japanese equities when there are quicker and better returns elsewhere... sorry to ramble but i think honda and jap equities should be ignored till the nikkei gets back under 16K, that may be a good re-entry point. we are seeing the age of global investing and investors are looking for investor confidence on a national level before they invest their funds in a specific stock, whether its fundamentals are decent or not, at the end of the day, the stock is hostage to the broader market direction..
I apologize for my errror statting that the CRV and Fit were "best-selling." The article stated that they were the #1 and #2 "hottest" selling cars in America for the past month. This is judged by how long each vehicle stays on a dealer's lot before it is sold.
Ah that makes sense.
What were the others? Any other honda's or acura's in the tp 10?
The beautiful thing about that is it means they can't build them fast enough. That is very good for profit margins. The number of CRVs selling is quite amazing IMHO.