How to trade auto's and Ford in light of China

Credit: The Street
Published on March 4, 2019 - Duration: 01:46s

How to trade auto's and Ford in light of China

Jacob Sonenshine: 02:22 I want to ask quickly about the autos.

Uh, I in, in the Wall Street Journal story, uh, mentioned a lot of, you know, the audio, there's going to be reduced, uh, hopefully reduced tariffs on American and it was going into China.

Um, so are you moved to on the autos at all there?

JJ Kinahan: 02:35 Well, what's interesting is I just talked about our IMX would chose what our clients do and our clients actually we bought for last month as one of the stocks that sort of stood out from a normal pattern buyers of Ford.

And a stock like that kind of makes sense if you think about it from a retail point of view, a relatively inexpensive on lever say cheap, but it's inexpensive, trading, you know, right around $9.

So people can take a view on the automakers doing well, not taking a big portion of their account.

I think that the auto makers have done an amazing job over the last few years adjusting the new technologies at the same time, streamlining their costs.

So this is sort of the third leg of what they need in order to really increase their business.

So we will see if it works out at the same time he did have Ford announced last month that they've gone out of this, uh, heavy truck business in some areas of Asian, not China, but some other areas of Asia.

So we'll see, you know, sort of what happens there and how that works out over the next couple of years.

Jacob Sonenshine: 03:36 You don't let a net buying of Fords.

And then one of my questions is, because it wasn't there in the last, you know, Sunday, when the news came out about trait, there wasn't much talk about reduced tariffs on metals, steel and aluminum coming in from China into the US.

So, do you think that these auto makers really need to see that in order to, in order to have those better margins again?

JJ Kinahan: 03:57 Well, you know, again, some of it is speculation as to what actually gets done also.

So we'll see what does, what does happen with steel and we still have a big steel supply from Canada also.

So, obviously if you can, any product you can make where your input costs are reduced is going to help your bottom line significantly.


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