Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Two Ways To Play: Ford, Toyota Spin Their Wheels


Strengthen your portfolio in good times and bad.

More gloomy news from the automotive sector. According to Bloomberg, Ford (F), Toyota (TM), Honda (HMC) and General Motors (GM) all reported declining sales in September because tighter credit conditions turned off buyers.

Ford said sales of cars and light trucks dropped 35% year-over-year. Toyota reported a 32% drop and Honda reported a 24% drop. GM's figures were down 16%.

Industrywide, sales likely fell for an 11th consecutive month marking the longest decline in 17 years.

Buyers were turned away as consumers were faced with tighter credit conditions. Last week CNW Marketing Research said loan rejections rose for all categories of auto buyers in the US - even for those with the best credit. The firm also said that through September 20, just 81% of applications for prime loans were approved, down from 91% a year earlier.

From the Bull Pen: It might be too easy to say that consumers weren't going to be buying cars and trucks, just soup and crackers. Nonetheless, note today's performance in Campbell Soup (CPB). Those that remain bullish on this stock can set sell stops below $38 or 37.

From the Bear Cave: All of the automakers are facing challenging times. But a rally in Honda to $32 could present bears with the best downside opportunity. If and when.
< Previous
  • 1
Next >
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

Featured Videos