Published Thu, 16 May 2019 07:15:08 -0400 on Seeking Alpha
With all the talk about electric cars and Tesla (TSLA) constantly stealing the limelight, it is easy to miss the fact that there are other auto manufacturers that offer compelling investment opportunities. The initial battle scene in Episode 3 of Season 8 of Game of Thrones showed the army of the dead essentially steamrolling over the good guys' defenses. That is not what Tesla is doing to the other manufacturers, except perhaps in the amount of media coverage it is getting.
The reality is that the auto industry is becoming more and more niche-focused, and there are other US-based companies that have a stronghold on their respective niches.
Here is an example. While total car sales have been declining since 2013, sales of light trucks and medium and heavy trucks continue to climb.
This dichotomy within the sector is what we think will drive good investment opportunities, and in some cases, these opportunities are of the income-generating variety.
Ford Inc. (F) recently reported upbeat Q1'19 earnings numbers on April 25, 2019, and while it is difficult to predict whether the company can successfully restructure its business model or at least offset ongoing headwinds, I believe its strong market share within trucks provides stability and a competitive advantage over some of the other auto companies.
The stock recently stopped a year-long decline, and while I wish I could have jumped in earlier this year, I still don't think it's too... Read more