A new tech-savvy car company is about hit the U.S., and it could give Tesla a run for its money.
- If You Think Tesla Scares Detroit, Wait 'till You See This
- One $9 Stock That Gets You into a $75 Billion Growth Market
- It's a Great Time to Buy Tech Stocks... and These Numbers Prove It
- These Tech Stocks Will Soar on the Auto Sales Boom
- The Next Subprime Crisis Has Already Started
- Hot Stocks: Ford Motor Co. (NYSE: F) Takes Pole Position Among Automakers
- Toyota Racks Up Recalls as Automakers Adopt More Proactive Safety Stance
- China Using Government Muscle to Turbo Charge its Auto Industry
- There's Reason to be Pessimistic about the U.S. Economy, but Never Panic
- GM's IPO Filing Reveals Challenges That Could Discourage Investors
- Buy, Sell or Hold: Tata Motors Ltd. (NYSE: TTM) Is Kicking Into High Gear
- Whitacre Resigns, but Is GM Really Ready to Roll On with its IPO?
- GM Hopes to Lead Budding U.S. Electric Car Market with Chevrolet Volt
- Money Morning Mailbag: The Euro and Other Hot Topics Spark Reader Debate
- Taipan Daily: BP Risks Facing Criminal Charges For Oil Spill
- General Motors: On the Road to Recovery, but Moving Slowly
China is pushing its automakers to meet improved fuel standards.
Thanks to these government's mandate, one $9 stock stands at the center of a technological breakthrough that'll roil this $75 billion slice of the automotive market.
On Thursday, an important bit of news came out that you may have missed: The U.S. Commerce Department sharply revised upward its second-quarter GDP estimate.
That revised number proves that, despite recent market turbulence, the U.S. economy remains on solid ground.
A few tech stocks are poised to earn big profits from the auto industry boom. Some analysts attribute this boom to an improving economy and falling gas prices.
But there's another important catalyst they're not considering - and it makes Silicon Valley the real capital of the auto sales boom.
Reading about what's going on in the subprime auto lending space is a lot like reading about drive-by shootings.
Unless you're a subprime borrower, or live in a neighborhood where drive-bys are happening, you probably don't know much about either - or think they affect you.
But if you listen closely there's muffled financial "gunfire" already in your neighborhood.
And it's much closer to your doorstep than you think.
The world's most profitable automaker reported record third-quarter net income of $1.69 billion, up 68% over the same period a year ago. The company also said it is paying down debt faster than planned as new models boost its U.S. market share.
Excluding some items, profit was 48 cents a share, beating the 38-cent average of 12 analysts' estimates compiled by Bloomberg. By comparison, the automaker recorded income of $997 million in last year's third quarter and adjusted per-share profit of 26 cents.
Toyota announced it needed to repair 1.66 million autos worldwide for brake-fluid leak issues. The newest development brings the total number of Toyota vehicles recalled worldwide in the past year to about 14 million.
The company said it needed to fix rubber seals on about 740,000 vehicles in the United States and 599,000 in Japan, as well as some models in European markets, including Avalon and Lexus sedans and Highlander sport-utility vehicles. A small amount of brake fluid was able to leak from the master cylinder and gradually reduce braking performance and cause a "spongy" feeling in the brakes, according to a company spokesman. Cars affected have had factory-filled brake fluid replaced with brake fluid that is not "genuine" factory fluid.
General Motors and Chrysler were forced into bankruptcy largely because they failed to pursue more fuel-efficient models. Indeed, GM and Chrysler looked wholly unprepared as gas prices soared over $4.00 a gallon in 2008.
As GM emerges from bankruptcy - having been bailed out by the U.S. government - it will put a renewed focus on alternative energy. Unfortunately, it's too late to make a difference. As U.S. car companies sputtered amid the country's economic collapse, carmakers in China raced ahead. And with billions of dollars in government backing, they are the companies that will set the pace for the global auto market.
Indeed, housing and unemployment continue to weigh on the U.S. economy. But don't panic. Remember that the prospects for a full economic recovery are much better outside the United States, and that it's often good to be greedy when others are fearful.
To find out more about the precarious state of the U.S. economy read on...
To take advantage of that trend, I recommended a very pro-cyclical play in my trading service, which you can only see by subscribing. But I also kept up my search and was able to find another good opportunity to recommend here. That opportunity is Tata Motors Ltd. (NYSE ADR: TTM).
About a month ago, my colleague and Money Morning Managing Editor Jason Simpkins articulated a view of the Indian economy that clearly details how that country is looking to accelerate growth. The major headwind for India has been inflation - more specifically, food prices.
However, India is experiencing a normal monsoon season and will soon see its production of food increase and food prices drop - the recent spike in wheat prices notwithstanding. This drop in food prices, coupled with renewed fiscal discipline will help bring inflation down from around 10% to about 6% by year end.
The company yesterday (Thursday) reported a 44% increase in net profit and announced that Chief Executive Officer Ed Whitacre would step down from his post on Sept. 1.
Whitacre, who was named GM's chairman last year as the company emerged from bankruptcy protection, will be replaced by GM board member Daniel Akerson. Akerson has little experience in the automobile industry, but he boasts a solid track record of leading telecommunications companies.
The extended-range electric Volt, running on battery power and a small engine, will be priced at $41,000 and will qualify for a $7,500 tax credit. The price is close to analysts' $40,000 estimate, but significantly higher than the $32,780 cost of its competitor, the Nissan Leaf.
GM justifies the price difference with the Volt's significantly better driving-range benefit: The Volt will run for 40 miles on battery power and then a small gasoline engine will kick in as a generator, powering the vehicle for another 300 - 400 miles.
Here is another look at some recent articles generating the most attention and some additional links for further reading.
It's not looking good for British Petroleum... or the Gulf of Mexico. In fact it's looking like an outright disaster, about as bad as we feared.
And BP's stock - which a number of armchair contrarians quickly dubbed as "cheap" in the aftermath of the Deepwater Horizon spill - is at risk of being massacred.
Don't trust the smart-aleck "buy the dip" viewpoints on this one. Not only would investors be unwise to buy call options on British Petroleum at current levels, they may well be better off buying long-dated put options instead... in anticipation of seeing BP's stock price cut in half. Or worse.
We're talking about $50 billion to $100 billion worth of market cap here... at real risk of being wiped out. (That notion might sound wacky. But a lot of folks thought the concept of a "euro crash" was wacky too, when we started pounding the table for it a number of months ago...)