Toyota Motor Corp (ADR) (TM)

"Buy American" attitude means a lot right now! Especially with Ford rippin and roarin!

A lawsuit was filed against Toyota on Thurs Nov 5 for defectives in the accelerator pedal in several different vehicles. A family of four died in august as a result, several other complaints have been popping up since then. 3.8 million Toyota and Lexus vehicles are now being recalled. This could affect their reputation and I think sales will take a hit, but when all the dust settles I think they will recover fine. Who knows how long that will take though. I'm expecting them to underperform for the short term..

HUGE announcment in the wings in delaware - watch live !
the connection?
Fisker Automotive and Quantum Fuel Worldwide (QTWW)

http://www.delawareonline.com/apps/pbcs.dll/article?AID=/999999990345/NEWS/90909062&template=mogulus

Fisker is expected to announce this morning that it has picked the former General Motors Boxwood Road plant near Newport to build a family-oriented plug-in hybrid sedan, a project backed by a $359 million loan from the federal government. GM closed the plant in June.

too many layoff, no buyers

Still overvalued, no plan to deal with slump.

While TM is a well run company, certainly better than the US automakers, they can not elude the macroeconomic factors present in the US. Soon people will not be looking at 2 cars per house as a necessity, and new cars are going to be selling like in-ground swimming pools for the next few years.

What? A 37% Sales slump for December that is GREATER than the decline for GM and Ford? According to CNN Money Toyota just had "It's sharpest fall in a quarter of a century."

They announced plans to halt production at their plants for 11 days between February and March. That just goes to show that even some of the best automakers are having rough times. I'm going to go with the trend on the auto industry and red thumb this stock for the next 3-6 months. After that we will see.

Just because they will do better then GM or Ford does not mean they will do better then the market. Besides...The domestic US car industry will be receiving government support, undermining Toyota's attempts to make good money or take the market share it deserves. I think everyone that has a green thumb on this simply are looking at gained market share as the reason. However a bigger share of a dramatically smaller market in a low margin business is not something to give a green thumb to.

Toyota is just like all industrial companies with high fixed costs and high debt loads ($145B in debt).

It will get scalped when sales volumes fall and fixed costs remain the same. Additionally it's biggest competitors are getting leaner and more competitive.

Toyota's golden age has just ended

Look for Toyota to fall behind as Honda and other companies focus their vehicles more.

Set to be a relative loser as the US and some European competitors get government help. Cyclical companies remain weak as downturn continues.

Toyota has run its course , recalls and quality issues are starting to catch up with them and Americans will start to get more protective as the depression deepens.

One of few stocks in the world that seem just too expensive even though it operates in an industry outside of the FIRE sector of economy (FIRE = Financial, Insurance & Real Estate).
The valuation to earnings potential going forward is not worth it, nothing going for it on the dividend end, and there would be other companies in the sector that are much more desirable.



I'd sell this company to put my money elsewhere. In fact, I'd rather use that money and pour it across residential real estate, apartment buildings, other stocks, commodities, or bonds. Even if it survives the next decade, it will lag its peers and it will likely lag S&P 500.


SELL.


bearish on pbr, cog, io, mcf, chd, prgo, zep, psa, ccl, joe, celg, sndk, wms, brk-a, alxn, mygn, otex, apol, fun, uti, swn, goog, tm, bms, stec



These picks are within this CAPs account that is market neutral - all longs are offset by a short. All long & short picks are diversified across industries & world location to limit downside exposure. This CAPS account will maintain at the very least 20 picks and at the very most 80 picks. Picks will be ended in long/short pairs to remain neutral.

trying a couple experiments, which hopefully wont mess up my whole portfolio. trying to follow the downtrend.

Global slowdown in car sales!

Toyota has won, they are comfortably heading to the top of the global auto market. Now that Toyota is at the top, there is not much room to grow from here. Toyota has grown through world renowned manufacturing techniques, but the amazing inefficiencies of the former Big 3 helped as well. With GM and Ford making significant cost reductions, and improving product quality, look for competition to heat up. Toyota will continue to be a great company, but size has begun to affect its quality, and the reality is, the Auto market may be stagnant for awhile. Toyota may not drop much in value, but its not about to double either.

The recession has hit Toyota; yes people want high mileage cars. But people are going to buy anything if they fear a recession. This will suppress Toyotas earnings.

No one is buying cars, unless they can get gas savings. This is a good company but right now for the next few weeks they are going to fall.

Great cars but way overpriced...