Automotive
ALSN wrong-way earnings move offers buying opportunityAllison Transmission annihilated analyst estimates for its earnings and revenue yesterday, spiking 10% after hours but falling during the daytime session today to below yesterday's close. Not only did Allison post a beat for the third quarter, but it has also seen upgrades to its earnings estimates for the next couple years. Allison also got recent good news when the US Army gave it an innovation award for onboard energy conversion in military tactical vehicles, and when Allison and IndyGo announced a partnership to build hybrid electric buses.
In P/E terms, Allison might look a little expensive. It's trading 27% above its median P/E on earnings dates over the last 3 years, 10% above its median forward P/E, and 8% above its median P/FCF. In forward P/S terms, however, it's cheap at 18% below the median. Likewise, it's 24% below the median P/D and P/B of the last three years. The somewhat higher P/E multiples are warranted because of growth expectations. With a PEG of 1.6, Allison is priced for growth.
Sentiment on Allison is fairly good, with about 11% upside to the average analyst price target, and a 7.7/10 analyst summary score (average rating "Buy"). Put/call ratios are bullish. In terms of technicals, Allison has dipped back below a trendline and dropped to a volume support node. Allison might get a bound from volume support here at 35.50, but it would be an even better buy if it dips to 32.
NIO is consolidating..NIO is back to consolidation mode!
As you see on the chart we saw
1. The first huge climb from 17-22
2. The consolidation for a few days
3. The breakout from 21-29 and change
I think based on this chart that NIO will trade sideways for a bit and if there’s no Washington style take down of the markets with no stimulus passing or any election related volatility, NIO will pop once more toward that 30-35 maybe even 40 level!
Currently the PT for NIO is between 32-40 set by JPM and BAC. Analysts predict that NIOs future PT is way above the 300 level. (Super bullish)
I’m excited on seeing NIO stock unfold! Let’s see how this unfolds!
Last but not least: I would avoid calls or puts for the time being as I forecast a sideways action remainder of this week at least. If you were to want to go in right now I would look for end of Nov expirations. I would also cover my calls with puts in case election volatility throws NIO a curveball.
If you’re long stock wise, it’s a great price to buy! Simple as that!
Recovery for Avis soon? The Avis price could drop in the short term where there will be a lot of volume as people buy cheap knowing the price will retest recent highs.
TESLA IS LOSING VALUE CAUSE OF PORSCHE?After a strong bull behavior in the first half of 2020, now is starting to get bear as we can see the MACD indicator changing the price with a non-stable William’s Alligator index due to the necessity of a readjustment in the price. As Tesla has become the most valuable automotive Industry, recently Porsche have announced that they will make only Electrical Cars, making the German house a very strong competitor in the Europe field mainly, due to that the price as the exclusivity have fall. Not a financial advice.
Entry zone: 369.15
Stop lose: 388.67
Target zone: 330.74
TVSMOTOR in buy Zone at POCTVSMotor has reached to our buy zone with its location at Point of Control Level We are confident that the stock would perform better in days to sideways movement. Why? This POC level was crossed once and the price has come back to say hello to it. I like when the price chit chats with support and resistance making it more promising move.
ASTON MARTIN - REVERSAL ZONE? LONG-TERM INVESTMENT OPPORTUNITYAston Martin has been on a steep and vigorous decline since its IPO. Could Aston Martin turn things around from here and start reversing from current prices?
Aston Martin has recently announced involvement in F1 with Racing Point rebranded as Aston Martin. This could help in turning things around. Billionaire Lawrence Stroll has clear intentions to do so and has invested into the company with a £260mil injection. Toto Wolff, Mercedes F1 team-principal has also bought a stake in Aston Martin. This indicates a large force and urgency to turn the Aston Martin brand around, stabilise the business and clean the balance sheet.
With the share price being significantly devalued and oversold and the falling wedge breakout, it could be an opportunity to invest long and short-term. Short-term in the sense that the stock is highly volatile meaning returns (and losses) are seen much quicker.
However, as the business model and balance sheet, as of now, is very unappealing, unstable and risky, the clear down-trend might still be in play and the current equilibrium triangle pattern maybe a consolidation phase before breaking lower in continuation.
4 things can happen here:
Equilibrium breakout upwards and a reversal
Equilibrium breakout downwards and a continuation
Equilibrium breakout downwards and a double bottom
Delayed Range-bound consolidation sideways
VERDICT: The trades/investments above should be played in accordance with your style and risk-tolerance since, given the volatility of this stock, there is high risk. Since the chart is in a clear down-trend, the balance sheet isn't yet appealing and macro-economic factors such as covid, bull calls are more risky than bear so do your own due diligence and manage risk appropriately.
A surprising bull case for General MotorsGM has been a company in decline for many years, and the coronavirus hasn't helped matters. Over the last three years, EPS shrank about 8.5% annually and SPS about 2% annually. The coronavirus caused GM to suspend its dividend, which at over 6% was the main reason for owning the stock. GM's stock price tanked hard, and I have to say-- based on current consensus estimates, GM has some absolutely *terrible* PEG and PSG ratios. Ordinarily I would short this stock hard.
However, the times may be a' changing for GM. Today the company absolutely walloped Wall Street estimates for Q2, with revenue 3.6% above expectations, and a loss per share that was only a third of the loss the Street expected. Guidance given on the conference call for the second half of the year is for $4-5 billion EBITDA, roughly 50% above the current Wall Street estimate. GM burned $8 billion in cash in Q2, but expects to generate $8 billion in the back half of the year, allowing the company to pay off the $16 billion revolving credit line it took out earlier this year. I should point out that all this guidance was tentative and contingent on continued economic recovery. But if it pans out, then I think we could see at least a partial restoration of GM's dividend early next year.
On the macroeconomic front, I see lots of signs that the auto market may continue to recover. Although revolving credit (e.g. credit cards) has been in decline during the pandemic, non-revolving credit (e.g. home and auto loans) has actually increased. Loan rates have been falling, and consumers are taking advantage of low rates to snap up homes. Home-buying data have blown out analyst expectations for the last couple months. What's good for homes should also be good for autos. Auto sales in June recovered slowly, from -30.2% YoY in May to -28.7% YoY in June. Auto sales are expected to show faster recovery in next week's July retail sales report, around -18% YoY. Fleet sales are expected to improve from -70% in June to -40% in July.
(Why bet on autos rather than homes? Because homes are supported by a government eviction ban that will be repealed at some uncertain future date, making that market risky. In the auto market, I have more faith that the numbers we're seeing reflect real market fundamentals. Here's another thought: with Americans moving out of cities and into suburbs and avoiding mass transit, auto demand may increase on permanent basis.)
Perhaps more importantly, GM's CEO said she expects "exciting updates" for GM's "Cruise" self-driving unit in the second half of the year. GM is a technology leader in the self-driving space, with only Google's Waymo ahead of it in the technology race. The self-driving unit thus may hold the key to a turnaround in GM's long, multi-year earnings slump. Some positive headlines from this unit would be a huge relief for embattled GM investors, and might even create some excitement around future growth.
For the near term, note that GM is currently trading in a triangle and is near the bottom of the triangle range, making this an attractive buy point with some technical support. In coming days I'd expect to see some analyst upgrades and upward earnings revisions on GM as analysts digest the optimistic guidance from the earnings call. I suspect we'll test the top of the triangle in the next two weeks, and perhaps break out the upper side in the event of a July auto sales beat.
Educational Analysis - Tata Motors Symmetrical TriangleBreakout of flag pattern might happen tomorrow as per auto sector's bullish trend on 28th July.
Alternatively, might reject and break down at the lower side of the triangle which seems highly unlikely looking at the currents trend.
Ford MTR $FHolding above $6.91 will strength the $F. I would get in above $6.91
12 months Consensus Price Target: $7.76
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Tesla Earnings, where to? VOLATILITY ahead!FA:
Tesla has been parabolic the past few weeks and has formed several new highs; the release of the earnings is bound to create volatility both ways.
Option traders are using a straddle strategy where they are predicting a move of $200 in either direction with the use of the SAP volatility INDEX (VIX) which we can see sometimes does correlate with the volatility of Tesla.
Bulls expect the S&P 500 inclusion for Tesla to be confirmed as they have reported profits which may lead to high volatility.
TA:
News could already be factored into the current price and thus can expect a retracement at market open.
If Tesla breaks above the resistance for the previous high, then we can expect it to form new ATH if not then we can expect it to retrace and perhaps fill the lower gaps although unlikely.
-Megalodon Whales
(Rahim)
Enjoyed doing this chart for you, you are welcome to post your own ideas and comment below :) NASDAQ:TSLA MIL:TSLA SWB:TL0 BMV:TSLA
Valeo - Benefits from the stimulus plans and raised outlooksValeo recovered 78% from the drop initiated mid February. The share price increased sharply after the announcement of the stimulus packages to the automotive industry accross Europe. Barclays has just raised their share price target to 30 euros. Worth looking into buying on a pullback towards the 22 euros support line with a target near the 28 euros resistance.
Ford Bearish outlookLeaning bearish on Ford right now. Its close to invalidating my bullish count. More bearish if it breaks below ~$5.5
😯 Ferrari Could Be MASSIVE For Bears! (RACE)💰 LET'S GET INTO SOME FERRARI ANALYSIS!💰
1️⃣ First off SMASH that LIKE BUTTON & Give us a FOLLOW for DAILY ANALYSIS! ❤❤❤
(Overall Market Sentiment) 🐻 Bearish
- This one could be massive as a potential triple top crown could be in motion. We are now approaching the highs of the previous last 2 major structures. This could be a huge money maker for a bear!
- Let's also notice that we do have some lower lows on major structures. Failure to break higher will result in a massive drop I believe.
- I'm looking to play this one on a timeframe like the weekly for a turn around and hold a long term position.
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TESLA $TSLA "cup w handle"It is forming cup w handle. needs to break $870 out with high volume to confirm the pattern
If you find my charts useful, please leave me "like" or "comment".
Thx
Chrysler testing new supportalthough a head and shoulders pattern is emerging on Fiat Chrysler's performance, sellers are testing old resistance on what is likely a new support.
Toyota - starting to trace primary wave 3 downToyota seems to have finished primary corrective weave 2 up and is now tracing primary wave 3 down. If this is the case, prices should decrease below 108.00. If prices crosses up 130, this analysis should be reviewed. FOLLOW SKYLINEPRO TO GET UPDATES.
TESLA $TSLA is rising upTSLA is rising but RSI is stil weak. Technic doesn't support price rising. The trend will be directed up to EPS result.
VWAGY (Volkswagen) - WeeklyShort term forecast for long term positioning
Looking for a reversal within the coming month & eventual downwards trend towards the DCA zone
Recent news: Volkswagen recently restarted operations amid concerns of actual demand within the global market.
FA: From 2018 to 2019, Volkswagen saw a 20+% increase in yearly net operating earnings generating up to just over $16.9 billion.
As a major player, the company is well positioned to adapt to future automotive trends, given they continue to embrace smart
car innovations. Due to the current global environment and reasonably forecasting decreasing demand for vehicles for at least
the short term, it wouldn't be a surprise to see price action return to the range between 10.65 - 14.51, this area may serve is a
good opportunity for securing some longer term positions via DCA.
Always DYOR & keep risk managed :)
*Disclaimer: The above analysis is an expressed opinion only and should not
be confused as professional financial, investment, trading or legal advice.
Bearish on TEN until Golden cross commencesTEN has surprised the traders once again with a break through the short downtrend, retracing back to support, bouncing and making 5% gains on the daily. However, with quarterly earnings on the horizon, I don't see these gains sticking around very long.
We are still in a major bearish downtrend, with GM layoffs looming, tariff rates, and the forecast for a recession upon us, for myself to feel any worthwhile investing in such asset. This asset, as well, is not going to trend fairly when companies start automating electric vehicles; since electric vehicles do not require an exhaust system.
I will be keeping an eye out for earnings and go from there.
