For investors: which car companies have most expensive shares?
09 November 06:11 PM
Investment news, USA. Competition between brands has become commonplace. Rating agencies earn good money by finding out who is the best, whereas those who manage to enter such lists are very proud of it and do their best to get higher.
In market economy freedom of choice is to be supported not only by profit expectation but also by reliable partners. Personal evaluation it is not always enough to be certain of the latter and take right decisions, and one has to address to independent experts. In the modern world these experts are frequently represented by rating agencies, or to be more exact, their rating systems.
Interbrand company, which was founded in 1974 and currently is the largest brand consulting agency, has recently issued a report about the most expensive car companies as of 2011. This information is rather useful for investors that want to maintain and add up to their savings by means of stock market.
Most expensive car companies in the world
10. Nissan. It is a widely known corporation founded in 1933 in Japan. Its success started with the production of Datsuns cars, which were produced under a brave motto: Rising sun is a flag, and Datsun is a car to choose. During the 60-s80-s of the previous century the company has considerably increased its production capacity and opened foreign branches. The corporation currently has production and assembly plants in 17 countries around the world. With the official slogan The power comes from inside, every three years ??? Nissan presents a new business plan, which foresees another increase of production capacity and introduction of innovative technology into all business processes.
The corporation currently occupies the 10th position among world car producers according to the price of quoted shares at stock exchanges.
As explained by the analytics of Masterforex-V Academy Department of Portfolio Investments, the companys shares have been traded within a down trend for two years, although stock market was having positive dynamics. This means that this company is too weak to provoke much interest from investors.
The current share price is within the consolidation zone of 2008 when it was widely bought up. It can be assumed that the level of $700-600 may attract many investors to the company because of its underestimation, which may cause the increase in this tool. However, we do not recommend investing in Nissan company as long as its shares are traded within a down trend and no fundamental changes are observed.
9. Porsche. The company was founded in 1931 in Germany as a design engineering bureau. It was headed by the world famous car engineer Ferdinand Porsche Jr., designer of truly peoples car Type 60 (also known as Wolkswagen Beatle).
It was at that time that the companys management understood that a car with high-quality design will always be in demand. The company has recently created another production unit in Leipzig (in addition to plants in Wolfsburg and Stuttgart), which is oriented on batch production of superpower Porsche sports car Carrera GT, which complies to all latest innovative developments in car industry. Moreover, in 2010 cars produced by Porsche company were recognized as most reliable.
Having a successful 80-year history of development, the company currently occupies the 9th position in Interbrand rating of world car manufacturers:
The companys shares failed to return to their previous level after crisis in 2008. At present share price is under strong resistance when only short-term purchases can be made; however, we do not recommend investing in this tool, as the share generally is rather weak.
8. Hyundai Motor Company. The company was founded in 1967. It currently is the largest car manufacturer in Korea. In 1998 Hyundai Motor Company gained control over Korean car manufacturing company Kia Motors, and in 2000 it signed strategic alliance with Daimler Chrysler. This alliance has been successful for several years.
Hyundai plant in Korean city Ulsan consists of five units and is considered the largest worldwide.
At present the company is a member of Hyundai Kia Automotive Group and occupies the 8th position in the rating of most expensive car companies worldwide:
The companys shares have demonstrated steady growth during last 3 years. However, at the point of $35 there happened distribution, after which the price has dropped to $25. This decline happened due to the decline of American stock market. In our opinion, at this point these shares can be bought, as US system risks have decreased.
We recommend buying either starting with $25, or as soon as the price is set over $30. The price can decline further either if the company or world economy generally declines.
7. Audi AG. This German car manufacturing company was founded in 1932 by merging DKW, Horch, Audi, and Wanderer. It currently is a member of Volkswagen Group.
Audi Group itself includes Hungarian and Brazilian production units, Cosworth Technology (Great Britain), Automobili Lamborghini (Italy), and SEAT (Spain ).
At present the company is actively rising its production capacity, increasing sales volume (23.4% more in 2010 than during the equal period in 2009), and actively using up-to-date technology in production and management. As a result, the company is the 7th among car manufacturers worldwide:
Since the beginning of 2011 the companys shares have been following a down trend; however, big players have demonstrated interest to this tool at the point $500. There is a recommendation to buy the shares of this company either starting with $500, or as soon as the price is set over $550. The share price can decline further either if the company or world economy generally declines.
6. Ford. Ford Motor Company appeared in 1903 in the United States of America, Michigan.
The company currently specializes in releasing Ford, Mercure, and Lincoln cars, trucks, buses, and various agricultural vehicles. Jaguar company is a part of the corporation.
4.8 mln. cars were released in 2010, and the companys staff currently amounts to 178 ths. people.
According to the output (during the entire period of its functioning), Ford Motor Company is the 4th largest car manufacturer in the world, 3rd at US market (preceded by GM and Toyota), 2nd at European market (following Volkswagen), and 6th in Interbrand rating:
For last two years the company has demonstrated positive dynamics, having earned $0.86 per share in 2009 and $1.66 in 2010. Several previous quarters have shown that this dynamics remains. In 2011 the company is predicted to earn about $1.48 – $2.15. We recommend buying the companys shares within the range of $10-$11, predicted target is $17, analytical stop-loss when it is set at the point of $10.
5. Volkswagen. The company was officially founded in 1938, although Ferdinand Porsche had the idea of creating a truly peoples car (Beatle) already in 1933. Having gradually developed during the World War II (similarly to Porsche, the company was making orders for the Third Reich) and stood out during the hard post-war time, the company is currently having a successful life as a part of Volkswagen AG.
Starting with 2000, every year car manufacturing plants, under the famous brand, are having batch production of absolutely new cars as well as of improved car models. Moreover, Volkswagen is actively raising its production volume and realization: thus, 359,889 cars were sold in 2010, which is 21% more than during the equal period in 2009.
At present the company is actively implementing most recent technologies from dozens of various spheres into car manufacturing process. Therefore, it is one of five world car manufacturers, whose shares have the highest value:
The companys shares have demonstrated steady growth in 2009-2010. This growth happened due to the increase of sales volume in particular and world economic recovery after crisis in general. The company has quit its positions at the point of $140. It happened due to market correction and decline of the companys fundamentals.
According to analytics, earnings per share are expected to decline during the nearest two quarters, and this can have a negative influence on share price. However, short-term purchases can be made due to the possible rise of stock market. The shares are recommended to be bought at the range of $120-$100.
4. Honda Motor Co., Ltd. Founded in 1946, it currently is an international industrial company, which is famous for its car and motorcycle production (besides, at present the company also produces trucks, motorcycles, power generators, robots, marine engines, and even planes).
The main constituents of Honda success are high reliability and modern technological decisions that are used at car production. Current sales volumes are rather high; thus, 1,230,480 cars were sold in 2010 in American units (main production unit is located in Tokyo) solely.
Honda Motor Co., Ltd. Occupies the 4th position of Interbrand rating:
Earnings per share kept falling during the last year, and share price has also undergone considerable correction due to the general market decline. The strong point of $30, where big players used to make their purchases, is currently left. We suppose that the share price can also demonstrate growth in the condition of global increase; however, we do not recommend investing in it before the companys fundamentals start rising.
3. BMW.Founded in 1917, the firm is a part of Bayerische Motoren Werke AG.
The company has stood out during the hard post-war time, when it was at the point of collapse (Germans were not allowed to produce aircraft engines, which at that time was the companys main product). The company has bailed out of the difficulties having switched to the production of motorcycle engines, then motorcycles, and soon cars.
The companys motto is Sheer Driving Pleasure; it specializes in car production, being the symbol of high-quality transport means for a well-off citizen.
The companys annual turnover currently amounts to $ 53 bln., and it occupies the 3rd place worldwide according to the share price:
According to analytics, sales volume is expected to decline during the nearest two quarters. Consequently, the tool is not going to show fundamental growth. Although we do not recommend investing in the tool, short-term purchases can be made due to the possible rise of stock market. Purchases are to be made when the share price is about $50.
2. Mercedes-Benz. The car concern was founded in 1871; it specializes on production of premium class cars, trucks, heavy equipment, passenger buses, and other vehicles.
The company currently is a member of Daimler AG (Stuttgart, Germany). It has rather wide product range and produces new or improves previous car models every year. In addition to cars, the company also produces trucks, buses, heavy equipment, and various types of engines.
In 2010 the companys brand was estimated at $ 25,2 bln., and it firmly holds the 2nd position of most expensive car manufacturers:
At this point the companys fundamentals are fine, although sales volume is not expected to rise drastically during the nearest two quarters, and neither are the shares. As the fundamentals are supposed to keep their old positions, we can assume that this tool will be interesting for investors due to its last decline.
Technically, the price has left the strong point of $30. The increase of this instrument is most likely to continue; therefore, it is recommended buy when the price is at the range of $30-$35.
1. Toyota Motor Corporation. Founded in 1933, the company currently is the largest car producer in Japan. It also provides financial services and has a range of additional business directions. Toyota AG subsidiaries include Toyota Financial Services, Daihatsu, Hino Motors, Ltd., DENSO, and Toyota Industries. The company successfully uses most recent innovative ecologically friendly technologies during car production, having batch production of hybrid and electric cars.
The companys annual turnover amounts to about $204,1 bln.
At present the company occupies the 5th position in Fortune Global 500 rating (a rating of 500 largest companies worldwide according to their earnings) and is a leader according to share price among car manufacturers: