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Wall Street Strategies has been providing independent stock market research since 1991 to individual, retail and institutional clients through a balanced approach to investing and trading. Charles Payne, our founder and chief analyst, is routinely sought after for his stock market, political,... More
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  • Is The Glass Half Full or Half Empty By: David Silver 1 comment
    Sep 30, 2010 3:10 PM | about stocks: F, TM, VLKAY, DDAIF, HMC
    As we approach the end yet another month (by the way, 2010 seems to be flying by, it is about to be October!), auto sales releases are just around the corner. From some of the dealerships I speak with around the country, the month has been “one of those months.” When I asked about what type of sales they were seeing compared to the same time last year, dealerships were positive, bragging that even despite the cash for clunkers program, they are still seeing higher sales. However, when I bring up the last few months, their mood takes on a much more somber tone. Since topping out in April and May of this year, auto sales have been trending down as the strength of the economic recovery was questioned and the fear that another wave of job losses would afflict the country increased. 
    On the bright side, dealerships haven’t been offering more incentives to get more customers in the door, which bodes well for the financial durability of both the automakers and the dealerships. According to, the average manufacturer incentives are estimated at $2,595 for each vehicle sold in September, down $106, or 3.9%, from last month, and off $151, or 5.5%, from September 2009. The headlines this morning are taking the positive approach, that despite seeing growth rates continue to fall, auto sales are expected to have reached the highest level since March (only May had more sales) with more than 11.7 million vehicles sold.
    The weakness in the economy has pressured sales over the past few months, and all indications are that that weakness will continue. The following table outlines our expectations for the month of September compared to both September 2009 as well as August 2010. We are expecting the month to bounce back from the previous year; however, we are expecting that total sales during the month of September will be lower than that of August 2010.  
    Y/Y Change
    M/M Change
    General Motors
    Ford Motor Company
    Toyota Motor Company
    Nissan Motor Company
    Honda Motor Company
    The industry is far from healed, but the companies seem happy with the current growth rates, especially considering the difficult comparisons that they will be cycling for the next few months.
    Disclaimer: All investment entails inherent risk. Wall Street Strategies' research seeks to assist investors in determining when to buy and when to sell to attempt to maximize profits or minimize losses. All final investment decisions are yours and as a result you could make or lose money. Wall Street Strategies, its employees and/or its affiliates and family members may from time to time take positions in the open market or otherwise with respect to the securities discussed. Wall Street Strategies, its employees and/or affiliates do not have stock ownership equal to or greater than 1% of the outstanding stock of the covered company nor does any employee of Wall Street Strategies sit on the Board of Directors of any covered company. Wall Street Strategies is not a broker/dealer, and the firm does not underwrite securities, manage assets or provide investment banking activities. The statements made herein include information obtained from sources believed to be reliable, but no independent verification has been made and we do not guarantee its accuracy or completeness. The statements made herein contain general information and do not constitute an offer to buy or sell any security.

    Disclosure: F Long
    Themes: Auto Sales Preview Stocks: F, TM, VLKAY, DDAIF, HMC
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  • Mark Bern, CFA
    , contributor
    Comments (6124) | Send Message
    Prediction: Comparisons to last year will make the headlines but comparisons to last month will be buried deep within the articles.
    30 Sep 2010, 06:03 PM Reply Like
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