Honda Motor Company

Discussion in 'Stocks' started by ByLoSellHi, Dec 21, 2006.

  1. Opinions?

    14 P/E ratio, incredibly competent management, free flow cash of 7 billion plus, rapidly growing global market share, ROI of 8+, and a clean balance sheet (probably the best in its industry).


    * I own it. I am seeking opinions of fellow traders in an attempt to decide whether to acquire more.
     
  2. RiverRat

    RiverRat

    I'd be a lot scared to buy here. I don't like hondas current lineup vs toyota or nissan.

    You going to buy on a pullback or breakout?
     
  3. I've always liked Honda's cars (not that its of much importance) and so I naturally wanted to own some shares. I like what they're doing with jets now too. Honda is much more than a car company unlike TM and GM etc. This is a "buy and hold" stock for me and I'd never buy after a run like the one its had over the past week. Always on the pullbacks.
     
  4. Guys - It really hasn't had a run. It is only up $10 in the last year. Compare that, % wise, with Toyota.

    And it may not pull back now.

    It was at $21 in '02.

    It is unloved and way under appreciated. It is a true global play, with rapidly advancing global market share.

    I want to buy some more right here.

    If you compare it to Toyota, on a value basis, you will see all of this.

    I guess I just answered my own question.
     
  5. Honda Sees Global Sales Hitting Records

    TOKYO, Dec 19, 2006 (AP Online via COMTEX) -- Honda Motor Co. said Tuesday it expects worldwide sales to rise 5 percent to an all-time high of 3.55 million vehicles this year amid booming overseas demand.

    Honda - which also makes motorbikes, robots and light aircraft, as well as the Odyssey minivan and Civic compact - expects U.S. sales to rise 3 percent to 1.51 million vehicles in 2006, marking a sales record for the 10th consecutive year.

    Soaring U.S. sales of light trucks, especially the Honda CR-V, led the overseas increase at Japan's No. 3 automaker, President Takeo Fukui told reporters at a year-end press conference Tuesday. To meet demand, he said Honda's Mexico plant would begin making CR-Vs in late 2007.

    The automaker also plans to unveil a new Accord sedan and a next-generation sports car at the Detroit motor show in January. For 2007, Honda expects a further 3 percent increase in sales to 1.56 million units in the U.S.

    Business was also brisk in Europe, where sales are seen climbing 8 percent to 310,000 units this year, and rising 13 percent to 350,000 in 2007.

    To keep up with demand, Honda said it would boost output at its British plant to 250,000 units from 190,000 last year, lifting its European production to 300,000 units when combined with its plant in Turkey.

    In Asia outside Japan, Honda is forecasting sales to rise 4 percent to 320,000 units this year and jumping 13 percent to 360,000 vehicles in 2006, the company said.

    But business was sluggish in Japan, with vehicle sales expected to dip 5 percent to 350,000 vehicles in 2006 amid tough competition in an automobile market that has been shrinking overall.

    A shift to smaller cars in Japan has also hurt sales of Honda's larger models. Sales of mini-vehicles are forecast to top 2 million this year for the first time, and now account for about 35 percent of Japanese new car sales, according to industry statistics.

    "Overseas sales are booming across the board, but conditions in the home market have been difficult," Fukui said. "We hope to strengthen our product offerings and revitalize the flagging market."

    Still, Honda's robust global sales underline the bright outlook facing many Japanese automakers, including Honda and Toyota, which have been expanding and booking record earnings, while U.S. rivals such as General Motors Corp. and Ford Motor Co. battle sagging sales by closing plants and cutting production.

    In May, profit-rich Honda Motor Co. announced sweeping expansions plans to spend US$1.18 billion (euro920 million) on new plants in the United States, Canada and Japan.

    The automaker said Tuesday it would spend 25 billion yen (US$211 million; euro161 million) to build a new engine plant in Japan to meet the expanding market to add to that capacity. The plant will be built in Saitama prefecture, just north of Tokyo and begin production in mid-2009. It will have an annual capacity of 200,000 units.

    In its newly launched HondaJet business, Honda said orders for the light passenger aircraft had topped 100 units for 2005, beating its own target of 70 units. Honda will deliver its first HondaJet to customers in 2010, Fukui said.

    Honda also said it expects global sales of motorcycles to rise 3 percent to 12.7 million units in the year to Dec. 31.

    Though Honda's global vehicle sales have been robust, the automaker's profits slipped 4.3 percent in the quarter ended Sept. 30 amid soaring raw material costs and research costs.

    Honda posted a group net profit of 127.9 billion yen (US$1.1 billion; euro880 million) for the July-September period, down from 133.7 billion yen the same period a year ago, also hurt by expenses for hedging interest rates and foreign exchange.

    But for the first six months of the fiscal year, Honda recorded 271.3 billion yen (US$2.3 billion; euro1.8 billion) in profit, up 11 percent from the same period last year, on 5.23 trillion yen (US$43.8 billion; euro34.9 billion) sales, up 13.7 percent from a year earlier.

    Honda shares fell 0.91 percent to 4,320 yen on the Tokyo Stock Exchange Tuesday. The company's share price has risen steadily in the past year.
     
  6. :) Yeah, I love the company they have been a great company and I think they will continue to be. I am just not in a big rush to load up now. Imagine its November 8th and you just read all the same info you just did and made the same comparisons to the other car companies that you just did- would you feel the same way?

    Stuff just seems to happen unexpectedly... the japanese market could go sour, there could be a recall, etc. These wouldn't have a lasting effect, but provide good times to buy. If you decide to buy now, its definately not a bad decision, its still a great stock and its pretty insignificant when you jump in if you plan on holding for a long time. Personally though, I wouldn't add most of my position here... some maybe, but not the majority...I'm gonna wait for some BS to happen to really backup the Ridgeline :p Goodluck!
     
  7. Tums

    Tums

  8. I thought this was a trading site? That aside, "distribution" doesn't pertain to just the Honda dealer network.

    I seem to remember a little stock called Sony trading at $300 (pre-split of course) , but then I can remember when "a" Honda came in two colors, red or white and was 90cc.
     
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  9. It is. What's your point?
     
    #10     Dec 22, 2006