Automobile stocks are out of favour with fund managers despite a strong showing by the domestic cons...
Automobile stocks are out of favour with fund managers despite a strong showing by the domestic consumer. David Currie, head of US equities at Edinburgh Fund Managers, says auto company earnings are peaking with Ford posting a 15% increase in earnings in dollar terms in the first quarter of this year. Ford saw its shares fall by 17% in the 12 months to 2 May in dollar terms and the stock is on a P/E of 9.09 times. Currie, who does not hold the stock, says: "It is very difficult for Ford to buy back shares as the Ford family still owns a sizeable chunk of the company. "They do not want...
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