Cashing in on the Automakers with China Exposure

    Investment Contrarians
    By Investment Contrarians

    By George Leong for Investment Contrarians

    The auto sector has been on a nice upward rally since trading at a bottom in July 2012, according to my stock analysis. Driven by low financing rates and rising domestic and foreign sales, we are seeing more carmakers taking the plunge and updating their older clunkers.

    In January, auto sales were sizzling, with General Motors Company (NYSE/GM) and Ford Motor Company (NYSE/F) recording sales growth of 16% and 22%, respectively. Toyota Motor Corporation (NYSE/TM) also rallied, reporting sales growth of 27% year-over-year in January. (Source: Seetharaman, D. and Klayman, Ben, “GM, Ford post stronger-than-expected auto sales for January,” Fox Business, February 1, 2013.)

    The numbers are estimated to even be better this year, so it would be an opportune time to accumulate some auto and auto-based stocks, based on my stock analysis. GM estimates that there will be between 15 million and 15.5 million autos sold this year. (Source: Ibid.)

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    Investment Contrarians

    Investment Contrarians

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