Toyota (TM) Hits 52-Week Low
October 16, 2007 by Douglas A. McIntyreIt really does not make any sense. The world’s largest and most profitable car company should not be at a 52-week low. But, it is. Yesterday, Toyota (TM) dropped to $107.68 on the US market, down from a 52-week high of $138.
Much of this is probably an emotional reaction in the market to the UAW deals that are getting done with GM (GM) and Ford (F). These should make manufacturing of cars more cost efficient for the US auto companies, but it will not improve their sales. Toyota is still gaining market share in the US
Another reason for the Toyota low is that cars sales in its home market of Japan are slow. But, the company has so much opportunity overseas that, by itself, the news should not take the shares down this much.
In the meantime, Ford and GM are near 52-week highs. They are still at awful prices, about .15x sales. Toyota can take comfort that it trades closer to .9x sales. a huge premium.
Cold comfort for people who bought the stock at $130.
Douglas A. McIntyre
Take This Retirement Quiz To Get Matched With A Financial Advisor (Sponsored)
Take the quiz below to get matched with a financial advisor today.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Take the retirement quiz right here.