This morning I saw a headline that made me more excited than watching Jesicca Alba in say – any movie she’s ever done.
12,600 people have put money down for tiny Smart car
United Auto Group Inc. said today that 12,600 prospective buyers have put down $99 deposits to reserve a Smart mini-car. The Smart ForTwo, a two-seat vehicle made by DaimlerChrysler AG, is already sold in Europe and Canada. It’s expected to be available in the United States in early 2008.
My fellow Masters, DaimlerChrysler (NYSE:DCX) is about to make more money than Jessica Alba could ever make doing Sin City 2 or the new Fantastic 4 movie. This tiny little fake car is going to put the Blue Blockers, the Pet Rock, and the Thigh Master to shame.
The smart fortwo pure will start under $12,000*, the smart fortwo passion coupe will start under $14,000* and the smart fortwo passion cabrio will start under $17,000*. Exact pricing will not be determined until late 2007. Once this information has been determined, it will be posted on www.smartusa.com. Okay, comparing sales to the Pet Rock and the other crap I mentioned is a bit much, but believe me, this little car is going to sell and it’s going to push DaimlerChrysler shares to new highs come this year and next.
A ton of people have been waiting for this car to come to the masses, Zap (OTC BB:ZAAP.OB) couldn’t get it done and investing in that penny stock is a waste of time. Electrical vehicle maker, Zap, of Santa Rosa, CA, claims it now has $2.9 million worth of orders for the two-seaters, the first of which was put on eBay. Zap does not buy Smarts through DaimlerChrysler but through a partnership with an individual who obtains the cars from dealers in Europe and imports them to the U.S., where they are modified to meet U.S. crash and emissions standards. Well the time has come to put the chips on the table, and if you ever wanted to bet on the Smart Car making you money, it’s now time to go with DaimlerChrysler.
Even if I’m wrong, investing in DaimlerChrysler is the way to go if you are trying to pick the winner in the Auto Sector. They are expected to report Tuesday (5/15) that net profit more than quadrupled in the first quarter. DCX sales are expected to post a first-quarter net profit of $1.88 billion compared to €299 million in the year-ago period, according to a Dow Jones Newswires survey of eight analysts. So if they come out a winner on Tuesday’s call and the analysts start upgrading the stock because DaimlerChrysler kicks ass, well what else can you ask for? Shares of DCX are pricey at $82 a share, I don’t care if Wall Street yahoo’s say "well that’s not bad considering their P/E is 19". Dude, its $82, and how many of you people can afford to rush out and buy 100 shares with that spare $8,200 you got laying around? Not this kid.
The Smart car factor is a wild card and believe me, DCX is going to play that card right, and Wall Street is going to reward them. If I’m wrong, so what, the stock won’t fall that hard and if it does then it’s time to double-down because the Smart car is taking this stock to the promise land. The Smart cars gets at least 40 mpg and with gas prices in the $3 range and likely to be $4 a gallon come 2008, this car makes sense for America. The Smart cars are the equivalent to that put-put you used to have as a kid that you pushed yourself around on like Fred Flinstone on both feet. I’m banking on celebs, yuppies, college kids, Californian’s, and tree-huggers all running out to buy this car.
Despite it’s tiny size, it’s roomy enough for a guy that’s 6’6", its cheap, trendy, and a very cool looking car. Place your bets America, I’m banking on Smart and DaimlerChrysler (NYSE:DCX). Who knows, if Jessica Alba buys one, I’ll run out and buy one too, then we’ll have both have that in common.
"Hey Jessica, do you like nerdy finance bloggers?"
"You bet I do and I love your Smart Car"
"Giggity giggity"
"You’re so funny Phil (laughing)"
"Giggity (said deep and slow)"
Article written by: Phil McCallister
Article posted on: May 11th, 2007
Disclaimer: The Author owns 20 shares of DCX and is banking that Jessica Alba would call him for coffee.