Hedge fund manager begs people to buy Toyota stock

Feb. 11 (Bloomberg) --

Peter Sorrentino, a fund manager at Cincinnati-based Huntington, said he may buy shares of the world’s largest automaker. Toyota has slumped 19 percent since it began a recall of millions of vehicles to repair problems linked to unintended acceleration on Jan. 21.


“Toyota is clearly more attractive now although the worst is probably not over for the company,” said Sorrentino, whose firm holds $12.8 billion including Toyota shares. “We’re not averse to adding to our position. We like their long-term prospects. We think a Toyota stock bought this year is going to pay us in years to come.”

http://www.bloomberg.com/apps/news?pid=20601087&sid=aakwoH9rYH68&pos=5

 

hedge fund from Cincinnati .. lol

 

Really, you find this funny? Is $12bil funny as well?

Are you implying that a fund outside of NY is not to be taken seriously?

 

lol - if hes saying 'buy' it means one thing: he still got some left that he cant shift so he pays bloomberg to advertise....

 

I would like to translate what Peter has said:

"Toyota is dirt cheap, if you buy Toyota stock this year, you will be filthy rich in a few years."

Well, Peter, if you think you will be filthy rich, why don't you go ahead and buy right now? Why do you come out and shout to everybody on Bloomberg News.com?

Reality is: Peter is bag-holding loads of Toyota stock and its value has "slumped" by 19%.

PS: advice to Peter: don't shout on Bloomberg News.com about your loss in Toyota stock, if your fund investors find out you are losing money, they will ask to withdraw money from the fund and you will be forced to liquidate your huge position in Toyota stock.

 

I think Sorrentino is bluffing. Adding to a losing position doesn't sound too bright.

When Toyota comes down more, he'll likely puke his position.

 

They need a preferred share that converts to a 2011 Camry.

I need one.

 

This is a a temporary difficulty toyota is facing. Recalls happen all the time in the auto industry. In three-five years I would bet my house that toyota stock will be higher than it is now.

I don't own any toyota shares because there are better deals out there, but I have seen this scores of times and toyota will recover, trust me.

 

Have you ever seen a cheap stock become more cheap? It happens all the time and if the long-term prospects for the company are good then adding to the position is the right thing to do. Buffett has made a pretty darn good career with this method. Toyota ain't going out of business and the stock ain't going to 10 bucks. Buy great companies when others are selling them -- pretty simple.

 

I just don't get it. Why don't they just exercise their discipline by watching and tracking TM (which is what they are paid to do), and then buy it only after it bottomed? If they didn't catch the bottom, then they could just cut their loss and then try it again. I don't see a reason for them to tie up their capital and take large risk like that.