Car Guy

Why Auto Stocks Are an Easy Short

mr cole, its obvious you are a novice investor and follower of the auto industry.

of course, its easy to paint the industry with one broad, negative stroke given all its problems. however, valuations and expectations are quite low as most of the bad news has been priced in. and while we likely haven't yet hit bottom, historically, these stocks trough with the SAAR which we are likely to see in the next 6 months. the stocks then typically outperform as investors anticipate a recovery.

with respect to your comments on mgt, mr mullaly certainly has a lot of work ahead of him, but you can't ignore the fact that he trimmed Ford's losses by $10bn ($12bn in 2006, $2bn in 2007) since he's joined. and you are incorrect in stating that "his first major move at CEO was to get rid of the ageing Taurus brand". Dropping the Taurus was in the corp pipeline before he got there - he had nothing to do with it.

i could go on and on...your bio states that "At only nineteen years of age, Andy has much on the road ahead of him. Currently, in college, he is in pursuit of his stockbroker’s license with a goal of a full time career in the securities industry." As someone who works full time in the securities industry, I can tell you that you do indeed have a very long road ahead of you -- hopefully it includes some education and fact checking. I wish you luck in shorting the sector, but think you may be out of your league.