BloggingStocks http://www.bloggingstocks.com BloggingStocks http://www.blogsmithmedia.com/http://www.bloggingstocks.com/media/feedlogo.gif BloggingStocks http://www.bloggingstocks.com en-us Copyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[AutoZone's Q2: Is the Stock's Fuel Tank Still Full?]]>http://www.bloggingstocks.com/2010/03/03/autozones-q2-is-the-stocks-fuel-tank-still-full/http://www.bloggingstocks.com/2010/03/03/autozones-q2-is-the-stocks-fuel-tank-still-full/http://www.bloggingstocks.com/2010/03/03/autozones-q2-is-the-stocks-fuel-tank-still-full/#commentsFiled under: ,

AutoZone (AZO), a distributor of replacement items for motorized vehicles, posted a very good second quarter on Tuesday. Net sales increased 4%, and earnings per diluted share went into high gear, rising over 21% to $2.46. According to our earnings preview, the analysts were expecting only $2.34 per share.

Gross margin experienced an expansion, as did the return on invested capital metric (the latter being measured over the trailing four quarters). Both of these developments indicate that execs are skillfully managing the underlying fundamentals of the business. Domestic same-store sales didn't rise as robustly as they did back during the first quarter, moving up only 1%. I would have liked to have seen a better stat on that one, but overall, I'm not going to complain too much, unless I detect a weakening trend in coming months.

Continue reading AutoZone's Q2: Is the Stock's Fuel Tank Still Full?

AutoZone's Q2: Is the Stock's Fuel Tank Still Full? originally appeared on BloggingStocks on Wed, 03 Mar 2010 09:00:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>auto industryAutoIndustryautozoneAZOcarsWed, 03 Mar 2010 09:00:00 EST<![CDATA[Japan's New Finance Minister Wants a Stronger Dollar, Weaker Yen]]>http://www.bloggingstocks.com/2010/01/07/japan-s-new-finance-minister-wants-a-stronger-dollar-weaker-yen/http://www.bloggingstocks.com/2010/01/07/japan-s-new-finance-minister-wants-a-stronger-dollar-weaker-yen/http://www.bloggingstocks.com/2010/01/07/japan-s-new-finance-minister-wants-a-stronger-dollar-weaker-yen/#commentsFiled under:

Japan's new Finance Minister Naoto Kan is on record saying he wants to see a weaker yen, CNNMoney.com reported Thursday.

And, as they say in the foreign exchange, 'easier said than done.' The yen has risen to a level versus the dollar that's a concern to Japan's auto makers. Although the yen is roughly unchanged versus the dollar since January 2009, it's strengthened about 15% versus the dollar since the onset of the global financial crisis' acute stage in August/September 2008.

The significance? Japan's automakers must raise prices on cars/vehicles exported to the U.S. to protect profit margins of vehicles priced in dollars: if they don't those margins will shrink.

Continue reading Japan's New Finance Minister Wants a Stronger Dollar, Weaker Yen

Japan's New Finance Minister Wants a Stronger Dollar, Weaker Yen originally appeared on BloggingStocks on Thu, 07 Jan 2010 18:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>auto industryAutoIndustrydollarNaotoKanyenThu, 07 Jan 2010 18:00:00 EST<![CDATA[Why are GM and Chrysler shutting down dealerships for no reason?]]>http://www.bloggingstocks.com/2009/12/15/why-are-gm-and-chrysler-shutting-down-dealerships-for-no-reason/http://www.bloggingstocks.com/2009/12/15/why-are-gm-and-chrysler-shutting-down-dealerships-for-no-reason/http://www.bloggingstocks.com/2009/12/15/why-are-gm-and-chrysler-shutting-down-dealerships-for-no-reason/#commentsFiled under: ,

In an almost unprecedented case of federal bureaucratic meddling in what should be business decisions, GM and Chrysler have agreed to set up an "appeals" process to give dumped dealerships a chance to plead their case for retaining their franchises.

GM and Chrysler came under intense pressure from Congress when they announced plans to close dealerships, largely because the National Automobile Dealers Association is one of the most powerful lobbying groups in the country.

Continue reading Why are GM and Chrysler shutting down dealerships for no reason?

Why are GM and Chrysler shutting down dealerships for no reason? originally appeared on BloggingStocks on Tue, 15 Dec 2009 17:00:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>auto industryAutoIndustrycar dealersCarDealerschryslergmnadaTue, 15 Dec 2009 17:00:00 EST<![CDATA[Banks subsidizing auto TARP, extra money could be spent]]>http://www.bloggingstocks.com/2009/12/10/banks-subsidizing-auto-tarp-extra-money-could-be-spent/http://www.bloggingstocks.com/2009/12/10/banks-subsidizing-auto-tarp-extra-money-could-be-spent/http://www.bloggingstocks.com/2009/12/10/banks-subsidizing-auto-tarp-extra-money-could-be-spent/#commentsFiled under: , ,

The bailouts of late 2008 and 2009 have cost the American taxpayers $61 billion, according to the Treasury Department, but the banks aren't to blame this time. The auto manufacturer bailout, which includes Chrysler and General Motors (GRM), has cost the country more than $30 billion, with American International Group (AIG) consuming another $30 billion.

Meanwhile, Bank of America (BAC) has already made good with the government, and several banks -- such as Capital One (COF), JP Morgan Chase (JPM) and TCF Financial (TCB) -- only have to clean up situations regarding the warrants they've issued. And interestingly, the losses from the bailouts on AIG and auto manufacturers are being offset by profits from the bank bailouts, which could generate additional funds of up to $19.5 billion.

Continue reading Banks subsidizing auto TARP, extra money could be spent

Banks subsidizing auto TARP, extra money could be spent originally appeared on BloggingStocks on Thu, 10 Dec 2009 09:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>AIGamerican international groupAmericanInternationalGroupautoauto industryAutoIndustrybacBank of AmericaBankOfAmericaCapital One FinancialCapitalOneFinancialCOFgeneral motorsGeneralMotorsgrminsuranceJPMJpmorganChasetarpTCBTCF FinancialTcfFinancialtimothy geithnerTimothyGeithnertreasuryTroubled Asset Relief ProgramTroubledAssetReliefProgramThu, 10 Dec 2009 09:00:00 EST<![CDATA[AutoZone drives through analyst expectations in Q1]]>http://www.bloggingstocks.com/2009/12/09/autozone-drives-through-analyst-expectations-in-q1/http://www.bloggingstocks.com/2009/12/09/autozone-drives-through-analyst-expectations-in-q1/http://www.bloggingstocks.com/2009/12/09/autozone-drives-through-analyst-expectations-in-q1/#commentsFiled under: ,

AutoZone (AZO) is in the fast lane. The stock has done reasonably well this year, and the first-quarter report, released on Tuesday, shows that the company still knows how to drive earnings growth.

According to the company's earnings report, sales increased well over 7% and earnings per share expanded by better than 26%. Income was pegged at $2.82 per share. That was way above the call. Our earnings preview indicates an expectation of $2.66 per share. Clearly, management is doing something right.

Continue reading AutoZone drives through analyst expectations in Q1

AutoZone drives through analyst expectations in Q1 originally appeared on BloggingStocks on Wed, 09 Dec 2009 09:00:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>auto industryAutoIndustryautozoneAZOcash for clunkersCashForClunkersinthenewsWed, 09 Dec 2009 09:00:00 EST<![CDATA[Pep Boys tops estimates by a penny in the second quarter, comps decline]]>http://www.bloggingstocks.com/2009/09/09/pep-boys-tops-estimates-by-a-penny-in-the-second-quarter-comps/http://www.bloggingstocks.com/2009/09/09/pep-boys-tops-estimates-by-a-penny-in-the-second-quarter-comps/http://www.bloggingstocks.com/2009/09/09/pep-boys-tops-estimates-by-a-penny-in-the-second-quarter-comps/#commentsFiled under: , ,

The Pep Boys -- Manny, Moe & Jack (NYSE: PBY) issued Q2 earnings on Tuesday after the bell. The aftermarket service business for automobiles, whose related companies include AutoZone (NYSE: AZO) and AutoNation (NYSE: AN), said net sales fell about 2%, and earnings per share increased 50% to 15 cents. The earnings growth was actually better than that since there were a couple of items in the previous year's quarter that benefited the bottom line.

According to Reuters, the expectation was for 14 cents per share in net income. Yep, we got the beat-by-a-penny cliche in full effect here. Management credited cost containment and service sales as drivers for the quarter.

Continue reading Pep Boys tops estimates by a penny in the second quarter, comps decline

Pep Boys tops estimates by a penny in the second quarter, comps decline originally appeared on BloggingStocks on Wed, 09 Sep 2009 08:30:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>ANauto industryAutoIndustryautonationautozoneAZOcarsfeaturedPBYPep BoysPepBoysWed, 09 Sep 2009 08:30:00 EST<![CDATA[With Cash for Clunkers gone, where does the auto industry go now?]]>http://www.bloggingstocks.com/2009/08/25/with-cash-for-clunkers-gone-where-does-the-auto-industry-go-now/http://www.bloggingstocks.com/2009/08/25/with-cash-for-clunkers-gone-where-does-the-auto-industry-go-now/http://www.bloggingstocks.com/2009/08/25/with-cash-for-clunkers-gone-where-does-the-auto-industry-go-now/#commentsFiled under: ,

Now that Cash For Clunkers is over, the auto industry has a problem: Where will car sales come from now?

Everyone who had an old car and wanted a new one took advantage of the Cash For Clunkers plan -- who is going to go buy a new car the day after the government stopped paying people $4,500 to buy cars?

J.D. Power and Associates reduced its 2010 sales forecast to 11.5 million units from 11.6 million -- citing the impact of Cash For Clunkers. In other words, a big part of what Cash For Clunkers did was borrow sales from the future and front-load them, and now there's nowhere to go for car sales now.

Continue reading With Cash for Clunkers gone, where does the auto industry go now?

With Cash for Clunkers gone, where does the auto industry go now? originally appeared on BloggingStocks on Tue, 25 Aug 2009 15:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Auto IndustryAutoIndustryCash for ClunkersCashForClunkersChryslerGeneral MotorsGeneralMotorsTue, 25 Aug 2009 15:00:00 EST<![CDATA[General Motors goes back to car leasing: A sad day for consumers]]>http://www.bloggingstocks.com/2009/07/29/general-motors-goes-back-to-car-leasing-a-sad-day-for-consumers/http://www.bloggingstocks.com/2009/07/29/general-motors-goes-back-to-car-leasing-a-sad-day-for-consumers/http://www.bloggingstocks.com/2009/07/29/general-motors-goes-back-to-car-leasing-a-sad-day-for-consumers/#commentsBack in August of 2008, General Motors pulled out of car leasing altogether, citing slumping demand, declining resale values, and financing problems. Now the company, in partnership with GMAC, is planning to reenter the leasing market on August 1st of this year.

The Wall Street Journal reports that the final plan is still being worked out, but the Cadillac CTS, "which competes in a luxury market that is heavily dependent on the availability of lease deals," is likely to be among the models included in the leasing line-up.

Continue reading General Motors goes back to car leasing: A sad day for consumers

General Motors goes back to car leasing: A sad day for consumers originally appeared on BloggingStocks on Wed, 29 Jul 2009 15:40:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>Auto IndustryAutoIndustryGeneral MotorsGeneralMotorsGMinthenewsLeasingWed, 29 Jul 2009 15:40:00 EST<![CDATA[15 states now have more than 10% unemployment]]>http://www.bloggingstocks.com/2009/07/17/15-states-now-have-more-than-10-unemployment/http://www.bloggingstocks.com/2009/07/17/15-states-now-have-more-than-10-unemployment/http://www.bloggingstocks.com/2009/07/17/15-states-now-have-more-than-10-unemployment/#commentsFiled under: , , , , , , ,

Unemployment continues to riseAccording to a report today from the Labor Department, 15 states now have unemployment rates above 10%.

The most recent states to see unemployment above 10% are the southern states of Georgia and Alabama. The worst hit state remains Michigan, where the collapse of America's auto industry is having its biggest impact on jobs. Unemployment in Michigan is now sitting at 15.2%.

Continue reading 15 states now have more than 10% unemployment

15 states now have more than 10% unemployment originally appeared on BloggingStocks on Fri, 17 Jul 2009 17:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>auto industryAutoIndustrybad newsBadNewshiringhousingjob huntingJobHuntingmanufacturingMichiganrecessionunemploymentFri, 17 Jul 2009 17:00:00 EST<![CDATA[Surprisingly, Goldman Sachs raised the auto sector to Attractive]]>http://www.bloggingstocks.com/2009/06/18/surprisingly-goldman-sachs-raised-the-auto-sector-to-attractive/http://www.bloggingstocks.com/2009/06/18/surprisingly-goldman-sachs-raised-the-auto-sector-to-attractive/http://www.bloggingstocks.com/2009/06/18/surprisingly-goldman-sachs-raised-the-auto-sector-to-attractive/#commentsFiled under: ,

This morning, Goldman Sachs felt it prudent to up its view of the U.S. auto sector to Attractive from Neutral. The brokerage stated that it would use any current weakness as an opportunity to build positions. If, like me, you are questioning Goldman's strategy, the firm explained, "Despite the significant rally in auto shares since the February lows, we think we are still in the middle phase of a cyclical rebound in the auto sector."

In its note to clients, Goldman Sachs predicted, "improved affordability, improving confidence and significant pent-up demand as likely to offset the impact from gas prices and deliver significantly more upside in the space as auto sales gain momentum."

Continue reading Surprisingly, Goldman Sachs raised the auto sector to Attractive

Surprisingly, Goldman Sachs raised the auto sector to Attractive originally appeared on BloggingStocks on Thu, 18 Jun 2009 10:10:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>armArvinMeritorauto industryauto sectorAutoIndustryAutoSectorBorgWarnerbwaGoldman SachsGoldmanSachsinthenewsupgradeThu, 18 Jun 2009 10:10:00 EST<![CDATA[Obama says 'reasonable probability' of getting paid back on auto loans]]>http://www.bloggingstocks.com/2009/06/11/obama-says-reasonable-probability-of-getting-paid-back-on-auto/http://www.bloggingstocks.com/2009/06/11/obama-says-reasonable-probability-of-getting-paid-back-on-auto/http://www.bloggingstocks.com/2009/06/11/obama-says-reasonable-probability-of-getting-paid-back-on-auto/#commentsFiled under:

The average American family of four has, against its will, invested over $900 in the Detroit auto industry so it's fair to ask: Will we be getting our money back?

President Obama's auto task force told lawmakers yesterday that there is a "reasonable probability" that the federal government will be paid back. I don't buy that and here's why: Liquidation analysis of GM suggests that there would be just $10 billion in net proceeds from a liquidation. Given that the government has $80 billion invested in the industry with little collateral, long-time money losers like GM and Chrysler will need to earn spectacular returns on equity to pay back their loans. I just don't see it happening. Do you?

Continue reading Obama says 'reasonable probability' of getting paid back on auto loans

Obama says 'reasonable probability' of getting paid back on auto loans originally appeared on BloggingStocks on Thu, 11 Jun 2009 15:30:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>Auto IndustryAutoIndustryChryslerfeaturedGeneral MotorsGeneralMotorsGMObamaThu, 11 Jun 2009 15:30:00 EST<![CDATA[Unemployment continues its rise in April]]>http://www.bloggingstocks.com/2009/05/26/unemployment-continues-its-rise-in-april/http://www.bloggingstocks.com/2009/05/26/unemployment-continues-its-rise-in-april/http://www.bloggingstocks.com/2009/05/26/unemployment-continues-its-rise-in-april/#commentsFiled under: , , , , , , , , ,

Jobless claimsThe employment data is in for April, and it is not a pretty picture, as all but 6 states in the country saw increases in the number of jobless claims.

We all hope that Federal Reserve Chairman Ben Bernanke is right, and the economy is going to start to turn around in the latter part of this year, but even the most optimistic forecasters agree that unemployment is going to continue to rise, possibly above 10% before the worst is over.

Continue reading Unemployment continues its rise in April

Unemployment continues its rise in April originally appeared on BloggingStocks on Tue, 26 May 2009 17:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>auto industryAutoIndustryBen NernankeBenNernankeeconomic slowdownEconomicSlowdownfederal reseverFederalReseverforecastsforeclusrehousingjoblessjobless claimsJoblessClaimsjobsMichiganrecessionunemploymentTue, 26 May 2009 17:00:00 EST<![CDATA[General Motors tops expectations with a $6 billion loss in the first quarter]]>http://www.bloggingstocks.com/2009/05/07/general-motors-tops-expectations-with-a-6-billion-loss-in-the-f/http://www.bloggingstocks.com/2009/05/07/general-motors-tops-expectations-with-a-6-billion-loss-in-the-f/http://www.bloggingstocks.com/2009/05/07/general-motors-tops-expectations-with-a-6-billion-loss-in-the-f/#commentsFiled under: , ,

The earnings news isn't great for General Motors (NYSE: GM) this morning, but the company did manage to lose less money than expected. The struggling American automaker announced that it lost $6 billion during the quarter and spent $10.2 billion more cash than it received. Excluding items, GM lost $9.78 per share -- far greater than a year ago when the firm lost 67 cents per share.

Despite results being far worse than a year ago, GM managed to top expectations of a loss of $11.39 per share. GM's quarterly revenue dropped 47% to $22.4 billion from $42.4 billion a year ago.

[Update: GM will need another $2.6 billion in U.S. aid in May, CFO Ray Young said on a conference call.]

Continue reading General Motors tops expectations with a $6 billion loss in the first quarter

General Motors tops expectations with a $6 billion loss in the first quarter originally appeared on BloggingStocks on Thu, 07 May 2009 08:15:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>auto industryAutoIndustryautomakersbankruptcyfeaturedGeneral MotorsGeneralMotorsgmThu, 07 May 2009 08:15:00 EST<![CDATA[If recession gallows humor offends you, do not watch this video]]>http://www.bloggingstocks.com/2009/04/30/if-recession-gallows-humor-offends-you-do-not-watch-this-video/http://www.bloggingstocks.com/2009/04/30/if-recession-gallows-humor-offends-you-do-not-watch-this-video/http://www.bloggingstocks.com/2009/04/30/if-recession-gallows-humor-offends-you-do-not-watch-this-video/#commentsFiled under: ,

The comedic geniuses over at The Onion have come up with a brilliant idea for a reality show: Two teams of autoworkers at two factories competing to keep their jobs in a series of challenges -- complete with a host with an accent.

I realize that the situation facing many autoworkers is tragic, and some people may find this offensive. But I promise that watching this video and even forwarding it on to your friends won't harm the pension fund of a single worker.

Continue reading If recession gallows humor offends you, do not watch this video

If recession gallows humor offends you, do not watch this video originally appeared on BloggingStocks on Thu, 30 Apr 2009 16:45:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Auto IndustryAutoIndustryChryslerFFordGeneral MotorsGeneralMotorsGMThe OnionTheOnionThu, 30 Apr 2009 16:45:00 EST<![CDATA[Will labor costs kill the Chrysler-Fiat partnership?]]>http://www.bloggingstocks.com/2009/04/15/will-labor-costs-kill-the-chrysler-fiat-partnership/http://www.bloggingstocks.com/2009/04/15/will-labor-costs-kill-the-chrysler-fiat-partnership/http://www.bloggingstocks.com/2009/04/15/will-labor-costs-kill-the-chrysler-fiat-partnership/#commentsFiled under: ,

Reports have surfaced in London that Italian automaker Fiat is ready to walk away from the Chrysler deal. The bone of contention is high labor costs. The Italian firm has given the U.S. auto firm and Canadian and American labor unions until the end of the month to "significantly reduce labor costs." This revelation was made in an interview of Fiat's CEO Sergio Marchionne in the Canadian newspaper the Globe and Mail. Fiat wants Chrysler to lower the labor costs to Japanese and German plants levels.

The problem facing Chrysler is that the deal with Fiat is its last chance to stay out of bankruptcy. With Fiat ready to walk away from the deal, the North American unions had better agree to the demands or face some job losses. Let's not forget that Chrysler was given 30 days to complete the merger with Fiat or the American firm would be cut off from the government funding it is currently existing on.

Continue reading Will labor costs kill the Chrysler-Fiat partnership?

Will labor costs kill the Chrysler-Fiat partnership? originally appeared on BloggingStocks on Wed, 15 Apr 2009 08:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>auto industryAutoIndustrybankruptcyChryslerfeaturedFiatlaobr unionsLaobrUnionsunionsWed, 15 Apr 2009 08:40:00 EST<![CDATA[Consumers take out their frustrations at auto shows]]>http://www.bloggingstocks.com/2009/04/14/consumers-take-out-their-frustrations-at-auto-shows/http://www.bloggingstocks.com/2009/04/14/consumers-take-out-their-frustrations-at-auto-shows/http://www.bloggingstocks.com/2009/04/14/consumers-take-out-their-frustrations-at-auto-shows/#commentsFiled under: , , , , , ,

The last year has definitely been a rocky one for the auto industry, with American icons General Motors (NYSE: GM) and Chrysler both receiving billions of dollars from Washington in hopes of avoiding bankruptcy. While a lot of the country feels as though it is important to try to save the auto companies, not everyone is so happy with the recent events, and have been taking out their frustrations at recent auto shows.

The first sign that things are not quite the same as before can be noticed on the auto show floors. Typically in the past, the major auto makers spared no expense at setting up elaborate displays to lure in people to check out their most recent designs. This is not the case anymore for some of the industry's major players.

Continue reading Consumers take out their frustrations at auto shows

Consumers take out their frustrations at auto shows originally appeared on BloggingStocks on Tue, 14 Apr 2009 14:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>auto industryauto showAutoIndustryAutoShowconsumersconventionselectric carsElectricCarsFfordgeneral motorsGeneralMotorsGminthenewsTue, 14 Apr 2009 14:00:00 EST<![CDATA[U.S. auto sales fall in March, but not as much as expected]]>http://www.bloggingstocks.com/2009/04/02/u-s-auto-sales-fall-in-march-but-not-as-much-as-expected/http://www.bloggingstocks.com/2009/04/02/u-s-auto-sales-fall-in-march-but-not-as-much-as-expected/http://www.bloggingstocks.com/2009/04/02/u-s-auto-sales-fall-in-march-but-not-as-much-as-expected/#commentsFiled under: , ,

General Motors Corp. (NYSE: GM), Ford Motor Co. (NYSE: F) and all the other foreign and domestic automakers witnessed a 37% drop in U.S. auto sales in March compared to the year-ago period. The good news: that was a better-than-expected decline. When a 37% decline is considered good, there's the sign of a deeply-troubled economy (as if we didn't all know that already).

Continue reading U.S. auto sales fall in March, but not as much as expected

U.S. auto sales fall in March, but not as much as expected originally appeared on BloggingStocks on Thu, 02 Apr 2009 11:50:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>auto industryAutoIndustryChryslerFord MotorFordMotorGeneral MotorsGeneralMotorsHondainthenewsToyotaThu, 02 Apr 2009 11:50:00 EST<![CDATA[How long before auto bailout costs $100 billion?]]>http://www.bloggingstocks.com/2009/03/04/how-long-before-auto-bailout-costs-100-billion/http://www.bloggingstocks.com/2009/03/04/how-long-before-auto-bailout-costs-100-billion/http://www.bloggingstocks.com/2009/03/04/how-long-before-auto-bailout-costs-100-billion/#commentsFiled under: , ,

So far the auto industry -- General Motors Corp. (NYSE: GM) and Chrysler -- have received $17.4 billion in U.S. funds after much gnashing of congressional teeth. Meanwhile, American International Group (NYSE: AIG) snapped its fingers and over the weekend some Treasury officials gave it another $30 billion -- bringing its total to $180 billion. But thanks to the worst February in 27 years, the auto industry is going to catch up fast.

February's auto sales plunge is a result of the realization among Americans that they can keep their current cars running longer -- and even if their cars are broken, they can't get the financing to buy a new one and they certainly can't pay cash for a car -- too expensive. GM's sales fell 53%, Ford Motor Co.'s (NYSE: F) sales declined 43% and Chrysler suffered a 44% drop. Incentives are not working -- the average incentive per vehicle sold is up 8% to $2,914. Only Hyundai -- which lets buyers give back their car if they lose their jobs -- bucked the trend -- its sales fell only 2%.

Continue reading How long before auto bailout costs $100 billion?

How long before auto bailout costs $100 billion? originally appeared on BloggingStocks on Wed, 04 Mar 2009 08:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>AIGauto industryAutoIndustryffeaturedGMWed, 04 Mar 2009 08:40:00 EST<![CDATA[AutoZone has great Q2, but be careful about buying the stock]]>http://www.bloggingstocks.com/2009/03/03/autozone-has-great-q2-but-be-careful-about-buying-the-stock/http://www.bloggingstocks.com/2009/03/03/autozone-has-great-q2-but-be-careful-about-buying-the-stock/http://www.bloggingstocks.com/2009/03/03/autozone-has-great-q2-but-be-careful-about-buying-the-stock/#commentsFiled under: ,

Well, is there any stock working out there? Here's one that isn't doing too badly. In fact, it's closer to a 52-week high than a 52-week low (and that's saying something). I'm talking about AutoZone (NYSE: AZO). It's actually up at the time of this writing by almost 8% on second-quarter earnings.

Sales increased 8%, and the bottom line expanded over 20% to $2.03 per share. What was the call? According to this source, $1.84 per share was the expected number. Great job, AutoZone. Now, the thesis here isn't too difficult to divine. No one wants to buy a new car from General Motors (NYSE: GM) or Ford (NYSE: F). Not only is a recession happening, but some consumers are probably scared to make a major purchase from companies that are doing so poorly. Ergo, car maintenance is all the rage. AutoZone repurchased stock during the quarter and kept its gross margin relatively stable. Domestic comps revved higher by 6%. Those are positive points.

Continue reading AutoZone has great Q2, but be careful about buying the stock

AutoZone has great Q2, but be careful about buying the stock originally appeared on BloggingStocks on Tue, 03 Mar 2009 15:40:00 EST. Please see our terms for use of feeds.

Read | Read | Permalink | Email this | Comments]]>auto industryAutoIndustryautozoneAZOFFordgeneral motorsGeneralMotorsGMinthenewsTue, 03 Mar 2009 15:40:00 EST<![CDATA[Most Americans oppose more automaker aid]]>http://www.bloggingstocks.com/2009/02/25/most-americans-oppose-more-automaker-aid/http://www.bloggingstocks.com/2009/02/25/most-americans-oppose-more-automaker-aid/http://www.bloggingstocks.com/2009/02/25/most-americans-oppose-more-automaker-aid/#commentsFiled under:

Bad news for General Motors (NYSE: GM) and Chrysler: If ordinary Americans had their way, both companies would be out of business.

A new USA Today/Gallup poll shows that just one-fourth of Americans believe that the government should continue lending money to Detroit automakers -- a huge drop from the 61% that supported government aid back in December. There were 1,013 Americans surveyed from Friday through Sunday, and 51% thought that Detroit's auto industry would survive. That's a drop from 57% in December.

Continue reading Most Americans oppose more automaker aid

Most Americans oppose more automaker aid originally appeared on BloggingStocks on Wed, 25 Feb 2009 13:52:00 EST. Please see our terms for use of feeds.

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