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Investing in the Auto Industry
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Shah Gilani of Money Morning discusses the difficulties of investing in the world’s largest auto manufacturers.
- Duration 2:39
- Date Aug 14, 2012
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Shah Gilani of Money Morning discusses the difficulties of investing in the world’s largest auto manufacturers.
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Joined the company -- we have -- in New York no less Shah Gilani he's with money morning.
The last time we -- you -- we asked you to pick you gotta pick between General Motors and FaceBook.
A kind of which you -- that he would to -- -- but you pick FaceBook OK now go to different choice for.
If you have to put money into a car company.
Honda Toyota.
General Motors full you got four choices what would it -- Like putting Munich we're going to Stewart yes.
Actually I wouldn't really -- apply my capital to any of them there'll be -- -- I think they're going to be slow movers but if forced to pick.
I would actually pick to -- I would probably spent whatever capital I was to apply to the sector to Honda and to fort.
So you wouldn't -- General Motors -- Toyota.
-- -- that because Toyota just returned to number one spot and globally.
The Toyoda just said it's looking for record sales just down the road I know it's -- strong yen problem but that's a car company with a great reputation and its expanding that you wouldn't touch it.
I prefer Honda in terms of the Japanese makers because Honda had to 2.2 percent dividend yield you know that I loved I like to be paid to hold my stocks.
And that's another reason -- like -- -- -- 2.2 percent to hold that that PE on Ford is below three.
And on -- it's about fourteen and so I think I like those two.
Honda sales in China for the first six months of this year are up 120%.
Toyota hats essentials up sales to about 40% -- General Motors have substantial.
About 10% and Ford has -- also but 120% you'll be year's six month sales that's fantastic and -- is the place to be -- to growth.
That's interest push you into a corner and you'll go -- harmed -- in full if you absolutely have to but I was intrigued when you says when you book and dividend yield.
I you know I think that's increasingly important for lot of people.
2.2 percent not very much but -- but I honestly be yes 2.2 percent for Honda and before again much what -- you can -- find you some decent.
It's less than one -- it's ridiculous it's not even worth looking yet so.
Hey -- -- can get a stock that pays me something reasonable prefer little higher than 2.2 as long as that that's the dividend is secure.
But I'd like to be -- -- to pay to hold my stocks how about group -- -- -- bargain hunting it's five dollars a share yes I think the only way to look at Groupon is if you have some but -- -- -- -- -- this this term but I -- -- -- capital because if you look at the chart of Groupon looks like a stairway to -- just ratchet all the lays out.
It's all -- effect of us strong I have -- -- a rough play welcome to they're all good thank you that's that we talk in New York okay that's how the stock looks very.
Jog on and we appreciate being hit by giving us up thank --