Here is a long term chart overlay of TM vs. GM (Toyota vs. General Motors) comparison. This is with a backdrop of a long bear market in Japanese equities, and a strong American bull in the early part of the chart for GM. Even though their world-wide market share is about the same, TM is now worth about 15 times what GM is worth.
One reason I am pointing out this chart now, is that this weekend there was a nice write up about Boeing in Barron's. In my opinion, their main competitor Airbus is starting to stumble. Missteps by Airbus will translate into very good news for Boeing. There is always risk with a new plane, especially when it involves new fabrication, and new production techniques as the Boeing 787 does. However, the payoff can be enormous. With jet fuel at what seems like permanantly higher prices, composite parts are a competitive advantage that will take many years for Airbus to try and duplicate. I own Boeing stock for the long term, unhedged. I look to add more on pullbacks.
Takeover stocks are the main movers. I tend to shy away from takeover stories, because I feel like that by the time I get the news, it is stale and the stock has already moved.
No comments:
Post a Comment