GM

Strong March Auto Sales Support Our Bullish Take on Ford

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Preliminary monthly data showed that March auto sales in the US increased 12.7% and that Ford’s (F) performance was its best showing for the month in five years. The industry-wide seasonally-adjusted rate came in at a whopping 14.4 million vehicles. Although Ford’s growth rate trailed other car manufacturers, many peers were lapping easy comparisons due to last year’s production setbacks, and we’re not reading too much into it. We continue to believe Ford is a core position in the portfolio of our Best Ideas Newsletter. Though the increase in Ford’s sales was lower than peers’ during the month, we can’t find too much fault in the company’s monthly performance and are excited about what the numbers may mean with respect to profitability. As … Read more

Best Idea Ford Looks Set to Sign a Win-Win Labor Deal, Shares Rally 8%

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One our best ideas, Ford Motor (F), rallied nearly 8% as investors poured into a late market rally. Ultimately we think the price spike can be attributed to a few different factors, but most importantly, it looks like Ford and the UAW has struck up a deal that should be beneficial to both employees and shareholders. Although the UAW still must ratify the deal, initial terms of the deal indicate a fair agreement for employees, and a tremendous sign of confidence for the United States economy in the mid-term. Lower entry-level pay, more variable pay As expected with the precedent set with the GM deal a few weeks earlier, the new labor contract creates an entry level wage of $15.78, … Read more

Stay the Course; This is Not Lehman II, S&P Downgrade Meaningless

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As we had indicated a few weeks ago, investors should turn off the political news related to the debt ceiling debate, and we now encourage investors to stay the course with their investment strategy, despite the media’s attempt to amplify yet another containable crisis. When we first published our report suggesting that there was no cause for worry about the debt-ceiling deadline, we received quite a number of questions about how we could be so confident. Well, first of all, there is a degree of common sense: 1) the President could take it upon himself to invoke the use of the fourteenth amendment, which indicates that the US must make good on all of its debts and 2) politicians had already lived through the mistakes … Read more

General Motors Cuts Guidance on Higher Input Costs

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Simulated newsletter portfolio idea General Motors cut its full-year guidance due to higher than expected commodity cost increases and devaluation of key currencies in South America. Peers Ford and Fiat Chrysler also lowered 2018 guidance measures following a tough second quarter for the group. By Kris Rosemann The July 25 trading session was a tough one for simulated newsletter portfolio idea General Motors (GM) as it faced meaningful external pressures on its business and lowered guidance for 2018. Greater-than-expected impacts from rising commodity prices and currency devaluations in Brazil and Argentina were the primary drivers behind the guidance cut. However, some of those pressures may be easing as President Trump has reportedly agreed to work with the European Commission in … Read more

Earnings Roundup: DIS, GM, PEP, TWTR, UA

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Image Shown: A look at the 2022 GM HUMMER EV pickup truck that is due to launch by the end of this year. Image Source: General Motors Company – Fourth Quarter of 2020 IR Earnings Presentation By Callum Turcan In alphabetical order by ticker: DIS, GM, PEP, TWTR, UA Earnings season is roaring along, and we cover the reports of five more companies across different sectors in this article. The coronavirus (‘COVID-19’) pandemic continues to loom large, though we are encouraged by reports from Moderna Inc (MRNA) that its existing COVID-19 vaccine approved for emergency use is at least somewhat effective at treating variants of the virus according to initial clinical trials (a lot more work needs to be done … Read more

Dividend Increases/Decreases for the Week of August 19

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Below we provide a list of firms that raised their dividends during the week ending August 19. The dividend reports of covered firms on this list will be updated shortly with the new information. To access our dividend reports use the ‘Symbol’ search box in our website header. Firms Raising Their Dividends This Week                American Financial (AFG): now $0.63 per share quarterly dividend, was $0.56. Apple Hospitality (APLE): now $0.07 per share monthly dividend, was $0.05. Brigham Minerals (MNRL): now $0.77 per share quarterly dividend, was $0.60. C&F Financial (CFFI): now $0.42 per share quarterly dividend, was $0.40. Cable One (CABO): now $2.85 per share quarterly dividend, was $2.75. Cboe Global Markets (CBOE): now $0.50 per share quarterly dividend, … Read more