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Bright Spot: Auto Sales Best Month in Five Years
Posted by: Sally Jones (IP Logged)
Date: September 25, 2013 09:19AM

A vital indicator of consumer spending, the U.S. auto sales spike for the month of August is very positive news. The three top-selling auto makers, General Motors, Toyota, and Ford, are reporting sales increases of 15% - 18.4% year over year, making August 2013 the best-selling month auto makers have seen in five years.

North America’s largest car manufacturer, General Motors Co. (GM), was No. 1 in car sales in the U.S. last month, selling 275,847 vehicles. Demand for the company’s Cadillac and Buick makes is largely responsible for the 15% increase in sales, according to International Business Times.

In the No. 2 position, Toyota Motor Corp. (TM) sales were up 18.4% year over year, selling 231,537 cars for the month of August. According to the Detroit Free Press, the Toyota Camry has been the top-selling car in the U.S. for 11 consecutive years. The company expects to sell around 400,000 units this year.

Toyota’s Bill Fay, division group vice president and general manager, commented in a company press release: “The auto industry continues to be a bright spot in the economic recovery…August capped a great summer for new vehicle sales, and it was Toyota's best month in more than five years.”

Coming in at number three, Ford Motor Co. (F) sold 221,270 vehicles in the month of August. Ford reported a 17.5% hike in car sales and a 22% increase in sales of the F-Series pickup, according to International Business Times.

Bloomberg corroborates this good news for the manufacturing sector, reporting the largest increase in U.S. industrial production in six months.

Here’s a look at all three car companies in the super competitive U.S. auto market. Of the three, General Motors is the car maker most-held by Gurus, with 27 billionaire stakeholders, six of whom made new buys in the second quarter.

General Motors Co. (GM)

Up 59% over 12 months, General Motors Co. has a market cap of $51.67 billion, and trades with a P/E of 10.60 and a P/B of 1.80.

The current share price is around $37.44.

Guru Action: As of June 30, 2013, there are 27 guru stakeholders and active insider trading. Six billionaire investors made new buys in second quarter.

The top Guru stakeholder is Warren Buffett’s Berkshire Hathaway Inc. (BRK.A) (BRK.B) with 40,000,000 shares, after he increased his position by 60% in the second quarter, buying 15,000,000 shares at an average price of $31.68 per share, for a gain of 16.3%. Buffett’s current shares of 40,000,000 represent 2.89% of shares outstanding and 1.5% of total managed assets.

The four-quarter history shows a 36% gain on 15,000,000 shares bought at an average price of $27.12 per share.

Track share pricing, revenue and net income:



Toyota Motor Corp. (TM)

Up 62% over 12 months, Toyota Motor Corp. has a market cap of $206.84 billion, and trades with a P/E of 16.90 and a P/B of 1.60.

The current share price is around $130.56. The yield is 0.50%.

Guru Action: As of June 30, 2013, there are 12 guru stakeholders and one insider buy to report. Two billionaire investors made new buys in second quarter.

The top Guru stakeholder is Ken Fisher who increased his position by 0.08% in the second quarter, buying 3,616 shares at an average price of $116.78 per share, for a gain of 11.8%. His current shares of 4,503,323 represent 0.29% of shares outstanding and 1.4% of his total managed assets.

Fisher’s five-year history shows a 64% gain on 4,744,474 shares bought at an average price of $79.55. He has also gained 51% on 214,151 shares sold at an average price of $86.67 per share.

Track share pricing, revenue and net income:



Ford Motor Co. (F)

Up 71% over 12 months, Ford Motor Co. has a market cap of $67.8 billion, and trades with a P/E of 11.50 and a P/B of 3.50.

The current share price is around $17.26. The dividend yield is 2.00%.

Guru Action: As of June 30, 2013, there are 14 guru stakeholders and active insider trading.
One billionaire investor made a new buy in second quarter.

The top Guru stakeholder is David Tepper who reduced his position by 10.76% in the second quarter, selling 1,261,158 shares at an average price of $14.34 per share, for a gain of 20%. His current shares of 10,458,815 represent 0.27% of shares outstanding and 2.3% of his total managed assets.

Tepper’s six-quarter history shows a 51% gain on 12,183,973 shares bought at an average price of $11.38 per share. He has also gained 28% on 1,725,158 shares sold at an average price of $13.44 per share.

Track share pricing, revenue and net income:



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Guru Discussed: David Tepper: Current Portfolio, Stock Picks
Ken Fisher: Current Portfolio, Stock Picks
Stocks Discussed: TM, F, GM, BRK.A, BRK.B,
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