2 Big Reasons to Buy Automakers

The following video is from today's MarketFoolery podcast, in which host Chris Hill, along with Charly Travers, Jason Moser, and Joe Magyer, discuss the latest business news. Shares of Ford were down slightly on Wednesday after second-quarter earnings fell 57%. The economic slowdown in Europe got much of the blame for the results. Is this a preview of General Motors' upcoming earnings? In this segment, the guys analyze the automotive industry and share two reasons investors could be bullish on car stocks.

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Chris Hill owns no shares of any of the companies mentioned. The Motley Fool owns shares of Ford. Motley Fool newsletter services have recommended buying shares of General Motors and Ford and creating a synthetic long position in Ford. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days. The Motley Fool has a disclosure policy.

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  • Report this Comment On July 26, 2012, at 1:51 PM, mistacy wrote:

    "could be bullish"? SHOULD be bullish. Go ahead bears, eat up at Ford. Once there is a true valuation of the stock price realization, it is going to shoot up as all shorts will have to be covered. Why bears are still controlling the stock trade is somewhat beyond my comprehension. 14 days down versus 4 days up in 18 days of trading for July, it is quite atrocious. Ford announced the Europe hit ahead. They even had better earnings than expected. 30 c > 28 c. They are fixing the problems as they arise instead of waiting. They are doing everything they possibly can to do well. Yet not many seem to give them credit for that. 44 thumbs up on this website for Ford in 3 days, no thumbs down. Are you guys buying the stock, or just watching from the sideline & trying to get points for your profile. I am a long stock holder. My patience is wearing thin cause I have been holding for some time now. However, I do believe Ford is a value stock & is much more valuable than GM.

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