|Bid||8.81 x 40000|
|Ask||0.00 x 1400|
|Day's Range||8.76 - 8.84|
|52 Week Range||7.41 - 10.56|
|Beta (3Y Monthly)||0.97|
|PE Ratio (TTM)||16.33|
|Earnings Date||Oct 23, 2019|
|Forward Dividend & Yield||0.60 (6.83%)|
|1y Target Est||10.51|
Car stocks have had it tough in 2019, dealing with falling auto sales and labor strife. The General Motors strike, however, could give the sector a pass on weak third quarter numbers, setting up an interesting trade for investors into year-end.
China, the world’s largest auto market, is faltering like never before. September was the 15th month of annual car sales decline for the company.
(Bloomberg Opinion) -- At various times during his 14-year tenure as chief executive officer of Fiat Chrysler Automobiles NV, the late Sergio Marchionne held takeover talks with Volkswagen AG.The news that VW is considering a stock-market listing of its Lamborghini supercar division suggests Marchionne continues to influence the German carmaking giant. By spinning off high-value operations such as trucks and sports cars, VW’s boss Herbert Diess would be imitating his Italian peer’s successful approach to creating shareholder value. But Diess is struggling to be as daring, which will make it harder to achieve his goals.When Marchionne took the helm at Italy’s Fiat SpA in 2004, its market capitalization was a pitiful 5.3 billion euros ($5.9 billion). During his reign, he merged Fiat with America’s Chrysler and spun off Ferrari NV and Fiat’s trucks and agriculture machinery business (CNH) into separate companies. When he died last year, the combined equity value of Ferrari, Fiat Chrysler and CNH Industrial NV was 57 billion euros. His successor then completed the 6.2 billion-euro sale of the Magneti Marelli SpA auto parts division.Diess wants VW to hit a market value of 200 billion euros — up from 80 billion euros now, Bloomberg News reported as it broke the news about Lamborghini, adding that a sale of the brand is also under consideration. (VW says there are “no plans for a sale or public offering of Lamborghini”). Including all of Volkswagen’s 12 brands, its financial services arm and its Chinese joint ventures, the company’s sum-of-the-parts valuation could top 215 billion euros, Bloomberg Intelligence analyst Michael Dean estimated in August.In an attempt to realize that value, Diess has started off by following the Marchionne playbook. Fiat began by spinning off CNH in 2012. Diess also kicked off with a June listing of VW’s trucks arm, Traton SE.Marchionne followed the CNH divestment with the listing of Ferrari in 2016, and now it looks like Diess’s next step might be his own supercar brand. A sale of Volkswagen’s industrial machinery operations Renk AG and MAN Energy Solutions, which is being considered, would be akin to the Magneti Marelli sale. Analysts have even speculated that VW’s alliance with Ford Motor Co. could evolve into a merger, similar to the Fiat-Chrysler deal.Yet there’s a difference between the boldness of the two companies. Fiat spun out CNH by distributing the stock to existing shareholders, and it did the same with what was left of Ferrari’s equity after selling 20% of the company in an initial public offering in New York. Volkswagen, by contrast, sold just 11.5% of Traton to new investors in an IPO and then kept the rest of the stock for itself. In fairness, Diess has to manage a difficult set of stakeholders. The Porsche-Piech family controls VW, while the German state of Lower Saxony has 20% of the voting shares. He also has employee representatives on the board. The Agnelli family, which controls Fiat, backed Marchionne’s ambitions — and became significantly wealthier.Because of its arcane multiple voting-class structure, most Volkswagen shareholders have no say in the running of the company. That might explain why Diess opted for an IPO of Traton rather than a spin-off: Replicating the current VW voting arrangements in a new company wouldn’t have been attractive for new investors. But the listing was so small as not to give new investors any real say in the company’s running anyway. If the Porsche-Piech dynasty really want Diess to increase their riches, they should encourage offerings that unpick some of their own control.To contact the author of this story: Alex Webb at email@example.comTo contact the editor responsible for this story: James Boxell at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Alex Webb is a Bloomberg Opinion columnist covering Europe's technology, media and communications industries. He previously covered Apple and other technology companies for Bloomberg News in San Francisco.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Brazil's largest truckmakers are expressing optimism again about the growth prospects for Latin America's largest economy, even as the country continues to struggle to rebound from a deep recession that began in 2015. "We are breathing optimism," said Martin Lundstedt, Volvo Group's President and CEO, who traveled to Sao Paulo to take part in the biennial Fenatran expo, the largest truck and machinery trade show in the country. "Latin America ... is coming back.
Shares of U.S. automaker Ford (NYSE:F) haven't gone anywhere in a year, as the company's sales have dropped sharply amid the slowing growth of the U.S. economy and the steady declines of the U.S. auto market. Persistent tariff headwinds haven't helped the outlook of F stock, either. A year ago, Ford stock changed hands for $8.80. Today, F stock price is only slightly below that level.Source: r.classen / Shutterstock.com Sideways trading is actually a relief for those who are bullish on Ford stock. Before the last year, all Ford stock did was drop. Over the past five years, F stock price is down nearly 40%, versus a 50%-plus gain by the S&P 500.In other words, Ford stock has been a losing investment for a long time. That's due to a few things - namely, consistent revenue, margin, and profit erosion, against the backdrop of a stock that simply wasn't priced for such erosion.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThere's reason to believe, however, that Ford's worst days are behind it. That is, the consistent revenue, margin, and profit declines which have dominated Ford's performance over the past five years could turn into consistent revenue, margin, and profit growth over the next five years. * 7 A-Rated Stocks to Buy for the Rest of 2019 There's one big catalyst that can turn Ford stock around: electrification. Ford is going all-in on electric vehicles (EV) over the next five years. By taking that approach, it is better aligning itself with current demand trends and can re-ignite demand for its vehicles. That realignment should significantly and sustainably lift the company's growth.Below $10, Ford stock doesn't reflect the potential for electrification to significantly boost the company's growth over the next five years.Investors who believe that electrification can reverse Ford's currently depressed growth should buy Ford stock below $10. Ford Is Going All-In on EVsEVs are the future. They provide too-important-to-ignore environmental benefits, their economic benefits are becoming more obvious as battery costs come down, and their superior convenience is also becoming more obvious as the EV charging network gets bigger and better everyday. Also of note is that multiple surveys (see here and here) indicate that young consumers are fully embracing the EV trend.Ford has largely missed this EV trend. The company has a few EV and hybrid models - like the Ford Fusion - but it is notably behind its peers in this market. It's no wonder, then, that as traditional auto sales have dropped and EV sales have risen, Ford's limited selection of EVs has caused Ford's overall sales to take a hit.That's about to change. Ford is going all-in with EVs. By 2022, the company says that it will have launched 16 fully electric vehicles and 40 hybrid models. Among the EVs it plans to introduce are an electric and hybrid Ford F-150 pick-up truck, a Mustang-influenced electric crossover, and a mid-size Lincoln EV crossover. Ford also owns a big stake in Rivian, an electric pick-up truck maker that's set to unveil its first EV truck in late 2020.Ford is dramatically electrifying its vehicle portfolio over the next few years. That will make Ford's auto portfolio fresher, more exciting, more relevant, and more attractive to young consumers who will be the heartbeat of the auto market throughout the 2020s. As a result, Ford's depressed demand trends today could reverse course tremendously over the next few years thanks to electrification. Ford Stock Looks Cheap Below $10Below $10, Ford stock isn't priced for this electrification-inspired demand reversal. As a result, for those who think that such a reversal will materialize, buying Ford stock seems like a good idea.Ford's sales have been in a persistent decline for several years, thanks to falling volumes. According to consensus Street estimates, they are expected to keep declining for the next several years. But its new EVs could spark increases in its sales volumes in 2020, 2021, and 2022. The average sales prices (ASPs) of those new EVs should be high, since they are new cars. As a result, its total ASPs and sales volumes could jump over the next several years.That will provide a double boost for its revenues. The company's traditional auto portfolio will likely continue to decline. Still, super-charged EV volume and ASP growth should be enough to drive low-single-digit percentage revenue growth over the next few years.At the same time, the high ASPs of the EVs should lift its gross margins, while management's cost-cutting measures should push costs down. Thus, alongside low single digit revenue growth, EBIT margins should trend gradually higher over the next few years.Assuming low-single-digit-percentage revenue growth and slight EBIT margin expansion, I think Ford's EPS can reach about $2.30 by fiscal 2025. Based on a forward earnings multiple of seven, which is the average of Ford stock for the last five years, and a 10% discount rate, that equates to a 2019 price target for F stock of exactly $10. The Bottom Line on F StockFord stock has been a losing investment for a long time. But its electric vehicles could change everything over the next few years and ultimately turn this stock into a medium-term winner.As of this writing, Luke Lango was long Ford stock. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Super Boring Stocks to Buy With Super Safe Returns * 10 Winning Stocks to Buy and Stick With for the Long Haul * Don't Give Up on These 4 Cannabis Stocks The post Why Ford Stock Is Worth the Risk Below $10 appeared first on InvestorPlace.
Tesla is dominating the electronic vehicle market for long but the trade war and frequent controversies have distracted it from its sky-high goals.
Cambridge Capital CEO Benjamin Gordon By Oliver Estreich The doomed IPO of WeWork parent We Co. is likely to pressure technology companies to embrace more robust corporate governance and discourage features such as tiered voting shares that fueled investor ire. That’s according to Benjamin Gordon, CEO of Cambridge Capital, who spoke to CorpGov on […]
Ford Motor Co's July-to-September vehicle sales in China fell 30%, as the U.S. automaker continued to lose ground in a prolonged sales decline in its second biggest market. The Dearborn, Michigan-based automaker delivered 131,060 vehicles in China in the third quarter, Ford said in a statement. Ford's sales in China fell 35.8% in the first quarter and by 21.7% in the second quarter.
Ford Motor Co's July-to-September vehicle sales in China fell 30%, as the U.S. automaker continues to lose ground in a prolonged sales decline in its second biggest market. The Dearborn, Michigan-based automaker's delivered 131,060 vehicles in China in the third quarter, Ford said in a statement. Ford's sales in China fell 35.8% in the first quarter and by 21.7% in the second quarter.
The experience will be offered to guests for a limited time Oct. 14-Nov. 9, powered by technology from holoride, and set inside new 2020 Ford Explorer vehicles. "We are partnering with Ford and Universal to bring holoride's immersive, elastic content to the general public," holoride co-founder and CEO Nils Wollny said in a statement.
The Board of Directors of Ford Motor Company declared a fourth quarter regular dividend of $0.15 per share on the company’s outstanding Class B and common stock.
General Motors (NYSE:GM) stock opened for trade Oct. 10 at $34.45 -- just 75 cents above its 2019 low of $33.70 per share. Since the United Automobile Workers strike began Sept. 15, shares are down almost 11%. Half that loss came after Oct. 1, when the company began laying off workers at its Mexican factories over a shortage of parts. More were laid off Oct. 9.Source: Joseph Sohm / Shutterstock.com After talks to end the walkout turned negative, the strike transformed from a hiccup into an existential threat. This threat poses risks both to GM and the United Auto Workers union. The UAW has yet to organize the nation's foreign-owned plants -- even Volkswagen (OTCMKTS:VLKAY), where workers have voted twice on the matter in five years.The question for investors is whether to grab GM and the strike discount or stand off the sidelines.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Why Buy GM?GM has been dirt cheap ever since it began trading again in 2010. It opened that November at $35 per share.GM, Ford Motor (NYSE:F) and Fiat Chrysler (NYSE:FCAU) have been so cheap so long you can't call them undervalued. This is their value. GM currently sells at a trailing price-to-earnings ratio of 5.5. Its 38 cent per share dividend represents a yield of 4.5%. The other two U.S. automakers sport even higher yields. It's clear that investors don't believe in the car business. * 10 Super Boring Stocks to Buy With Super Safe Returns Or, they just don't believe in today's car business. Tesla (NASDAQ:TSLA), which offers no dividend, is worth $43.7 billion. That's just $6 billion less than GM stock.What investors know is that electric cars and autonomous vehicles are the future. What investors know is that Detroit's lineup of SUVs and pick-up trucks has a limited shelf life. U.S. auto sales peaked in 2015 at an annual rate of 18.2 million. The most recent report, for September, shows sales almost 500,000 below that figure. Detroit vs. Silicon ValleyFor the last several years Detroit has been in a tug of war with Silicon Valley over which side will direct the autonomous revolution. GM has joined the Autonomous Vehicle Computing Consortium, hoping to set standards for self-driving cars. It has its own self-driving unit, Cruise, and is working with other car companies.Meanwhile, Alphabet's (NASDAQ:GOOG, NASDAQ:GOOGL) Waymo unit is telling its Phoenix ride-hailing customers to soon expect Waymo cars without drivers. It is putting a fleet of self-driving cars into Los Angeles to gather real-time location data.Morgan Stanley recently cut Waymo's valuation 40%, to $105 billion. That's still more than twice GM's valuation. Cars Aren't Going to Be CarsGas-powered cars are complicated. They have engines and transmissions with many parts that can break. Electric vehicles have always been simpler, more reliable and less expensive to operate. This has been true since the 1890s. Gas-powered cars came to dominate the market because gasoline's supply infrastructure made the fuel cheap while electricity was still just barely keeping the lights on.Now that the electrical system is mature and seeking new markets as efficiency presses down on demand, the equation is shifting. GM knows it. Tesla has taken a big bite of the luxury market. Standards like Volkswagen's MEB, already being accepted by Ford, promise to make electrics cheaper as well. The Bottom Line on GM StockRegardless of the merits of this strike, GM and its union are fighting over scraps.Electric vehicles are the future. Self-driving cars are the future. The industry's entire business model is going to change utterly over the next decade. That's why GM, and the other U.S. automakers, are so cheap.This isn't just an existential crisis. This is the future telling the past what time it is. Both sides are going to lose here. Don't join them with your money.Dana Blankenhorn is a financial and technology journalist. He is the author of the historical mystery romance The Reluctant Detective Travels in Time, available now at the Amazon Kindle store. Write him at email@example.com or follow him on Twitter at @danablankenhorn. As of this writing he owned no shares in companies mentioned in this story. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Super Boring Stocks to Buy With Super Safe Returns * 10 Winning Stocks to Buy and Stick With for the Long Haul * Don't Give Up on These 4 Cannabis Stocks The post Donat Buy General Motors Stock -- Even on UAW Strike Discount appeared first on InvestorPlace.
The Louisville-made Ford Escape, which got a redesign for the 2020 model year, is making its way to dealer showrooms this fall.
Alphabet’s (GOOGL) self-driving car arm, Waymo, has informed its members who opted for the service that their next ride could be driverless.
Ford stock has gained about 12% year-to-date as of October 8. It's been on a downtrend, however, since it released its second-quarter earnings results.
A NYC official is calling for "The Rooney Rule" to combat a lack of diversity in high-level executive roles. Yahoo Finance's Zack Guzman & Brian Cheung, along with Flat World Partners CEO Anna-Marie Wascher discuss with New York City Comptroller Scott Stringer.