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Got cash? Toyota stock may be a good buy right now!

Posted: Mon Feb 15, 2010 9:13 am
by brian
Feb 12, 2010: Toyota is under fire from all sides on everything they do! And as such this is bashing their image and devaluing their stock as they navigate the press and lawyer created fiasco. However, from other companies who have weathered such storms (Bridgestone, Ford, JetBlue, Johnson&Johnson), the stock may come roaring back! It's 20% down and many in the investment world are saying it's a bargain! So...if you’ve got some cash to invest, you might consider investing in Toyota,the world's largest vehicle manufacturer!
See the NY Times Week In Review article Toyota’s Wrecked Image Needs the Right Bodywork

Re: Got cash? Toyota stock may be a good buy right now!

Posted: Wed Feb 24, 2010 5:14 pm
by brian
Feb 24, 2010: From NYTimes article In Congress, Toyota Chief Takes ‘Full Responsibility’ The company said Wednesday it will offer free at-home pickup of vehicles covered by the national safety recall, pay for customers' out-of-pocket transportation costs and provide drivers free rental cars during repairs. The deal - costs to the company weren't specified - was initially announced as part of an agreement between Toyota and New York state. The settlement was reached earlier in the day with the New York attorney general, Andrew M. Cuomo.

COMMENT: I suggest waiting a while before any speculative investing in Toyota (and of course consult a financial consultant first!)...
So lets do some math...round off to 8 million vehicles * ($50 tow + $50-$150?? out-of-pocket transportation & rental costs) = $800 Million to $1.6 Billion dollar expense right there. Then add to that the cost of the recalls ($100 per car?) in parts, labor, etc...That adds another $800 million.
so we're talking roughly about a $2 BILLION dollars Toyota is going to spend in the next couple of months. Guess that cash infusion wi'll be good for the US economy?
The current market cap of Toyota (NYSE:TM) is approx $116 BILLION.
And of course this is only the beginning as there will be vehicle 'loss of value' suits and 'i'm too afraid to drive' suits.
It is going to be an expensive year for Toyota. Can they survive??