Toyota stop sale

[tw]

Originally Posted by Pie

If I were going to buy a car right now, I would give serious consideration to a Toyota. Some pretty good deals out there, I bet.

Take it one step farther. As great and stable companies, Toyota and Honda have long been poor investments. They have been too stable. At best, you would only meet the S&P or Dow Jones averages.

View Toyota stock sales during the recall notices. The spike is massive. Paniced investors were selling.

So when is the best time to buy? You must determine at what point all the bad news is out. For example, the accelerator pedal may cost $70 per vehicles to replace. That is a $billion write off that has not yet appeared on spread sheets (because spread sheets report events long after it really happens).

Dealers may be desperate to make the sale. But I doubt it. Right now, they are fully employed by Toyota just upgrading existing new and already sold models. And the supply was cut off on some models as it took tiime to manufacturer new pedals.

But investment possibliities are good. Too many invest on silly emotion rather than appreciate the real value of that company. Maybe 10% or 20% are so pathetically foolish as to react to the news. That is a buying opportunity.

However the buying opportunity is so obvious as to not be as profitable as it might be. Those are the judgements that only you can put numbers to.