«Market Leader» - news and previews making you rich.

Friday, 30 January 22:34 (GMT -05:00)


Market Leader Free Newsletter
Your Name:
Your Email:

Stock and commodities markets

Tips For Investors: Nissan VS Toyota?


 

 

The year of 2011 was a good one for Nissan Motor Co., especially in terms of its unofficial competition with Toyota.
Nissan and Toyota are tough rivals in the global car market. On the face of it, there is nothing to discuss here. Toyota looks the frontrunner. It really is. However, according to Masterforex-V Academy experts, last year was especially favorable for Nissan.
 
2011: Outlook
 
Last year slightly chanced the balance of powers between the 2 motor giants. Let’s have a look at last year’s most prominent events for Nissan:
1.       Nissan became Japan’s 2nd biggest car manufacturer after Toyota.
2.       Nissan considerably improved its standing in the global rating while Toyota lost a bit of its ground.
3.       Even though Toyota enjoyed the status of some of the most precious car brands in the «BrandZ Top 100» rating ($24,4M), Nissan entered the TOP 5 car brands for the first time in history ($10.1M).
4.       In late 2011 Nissan showed such a considerable production increase that it easily outpaced all the other Japanese car manufacturers. At the same time Nissan became the most popular car brand in Russia (Toyota occupied the 8th place).
In 2011 Nissan Juke was put in the list of the world’s most beautiful cars along with Aston Martin Rapide, AudiA7, CitroenDS3, Ferrari 458 Italia. There was no Toyota among them.
 
Nissan and Toyota: Car Sales
If to consider the sales of the Renault-Nissan alliance, over 8 million cars were sold last year (+10,3%), which became a kind of a record and a pleasant surprise. During 2011 the alliance’s share in the global car market increased form 10,3% up to 10,7%. Nissan sold 4,67M out of the mentioned 8M cars (+14%). At the same time, Toyota sold much more - 7,95N cars. However, it is 5,6% less than sold in 2010.
 
2011 was Nissan’s best in terms of sales in Europe (+25%). That was a considerable increase in Russia (+74%), the UK (+11%) and France (+31%) against the background of economic instability when most car manufacturers saw a sales decline. As a result, Nissan’s share in the European market increased up to 3.7%. However, the company is fairly ambitious: it is planning to become Europe’s most popular Asian car brand by 2016.
 
Nissan was affected by last year’s natural disasters less than other Japanese car manufacturers.
 
Financial performance 2011
 

 

 

 

 

It should be noted that the Japanese financial year ends in March and its results are revealed in summer. That is why while considering Nissan’s financial performance we will be operating the data for April-December 2011:
 
·         Nissan’s net income shrunk by 7,75% down to $3,47B
·         Its proceeds increased by 4,31% up to 87,3B
·         Its operating profit dropped by 4,7% down to $5,55B
·         The sales volume increased by 4,3% up to $86,95B
 
At the same time, 2011 was a terrible year for Toyota:
·         Its net income collapsed by 57,5% down to just $2,1B
·         Toyota’s proceeds dropped by 10,2% down to $168B
 
Car sales forecasts for 2012

 

 

 

 

Nissan is expected to boost its sales by 7,7% up to $124B. Its net and operating income will probably shrink by 9,2% and 5,1% down to $3,8B and $6,65B correspondingly.
 
In general, the stock market is currently showing a positive reaction to the news form Nissan, which turns into a rally of the company’s stock. This makes Nissan ambitious and confident about its future. Nissan managers are planning to boost the company’s operating profit margin by 8% within 5 years.
 

 

 

 

 

According to the Portfolio Investments Department of Masterforex-V Academy, the stocks of Toyota and Nissan are currently bullish, with positive long-term forecasts.
 
Both the companies are expected to show a sales increase in Q1 2012. However, a slight slowdown in sales is anticipated in Q2 2012. That is why Masterforex-V Academy experts recommend waiting for a major correction prior to purchasing the stocks.
 
Nissan’s Problems
 
Masterforex-V Academy experts singled out a number of reasons why Nissan is currently experiencing some problems:
 
Natural disasters in 2011.   The earthquakes and tsunamis in Japan as well as the floods in Thailand severely damaged Nissan’s production.
 
Global economic slowdown in 2012. The global economic slowdown starts affecting car markets worldwide. This year Asian and European car markets are expected to see a further slowdown while the US demand for new cars will grow by 5-8%. However, Toyota is far more popular with Americans than Nissan.
 
Stronger Yen. At this point, USDJPY is around 83, which makes Japanese autos costlier for foreign buyers, thus affecting the exporters’ profits. Nissan is a major exporter (57% of the company’s total production volume was exported in 2011).
 
Alliance with Renault. The thing is that not so long ago Moody’s Investors Service downgraded Renault’s rating. Renault owns more than 43% of Nissan’s stock while Nissan owns 15% of Renault’s stocks. Therefore, the ratings of both the car manufacturers are closely correlated.
 
Quality issues. No car can serve forever. However, more and more car manufacturers start calling back their products because of mere or hidden malfunction. Nissan is no exception. Not so long ago it called 250.000 cars because of a fuel leak issue.
According to J.D.Power’s car reliability rating (based on the amount of breakdowns per 100 autos under 3 years), Lexus was the most reliable car. Toyota came 3rd while Nissan was only number 17.
Not so long ago Ecology Center tested the cabins of multiple car models for toxicity and compared the results. As a result, Nissan Tiida found itself number 4 in the list of the 10 most toxic cars. However, Nissan Cube was recognized the 4th least toxic car. So, as we can see, it depends on a particular car model.
 
Prices. Toyotas are relatively expensive but Nissans are no so cheap as well.
 
The top managers at Nissan Motor are aware of these problems and promise to improve the situation.
 
Nissan’s Prospects
 
The top managers of Nissan Motor feel confident in the future due to numerous factors:
·         More substantial investments in the Nissan and Infiniti brands
·         Introducing innovative technologies
·         Expanding the Nissan family
·          Making environmentally friendly and economical cars
·         Improving the design
·         Improving the ratio between the price and the quality
·         Starting the production of low-priced cars
·         Conquering new markets
·         Expanding domestic sales
·         Cooperating with other car brands around the globe.
 
 
All these factors are expected to help Nissan Motor expand is share in the global car market up to 8% within the next few years.
 
The bottom line: Both Nissan and Toyota are fairly good and reliable cars. Nissan has shown considerable progress so far, which means the competition between the 2 Japanese car brands will only get tougher. This is good for both the car manufacturers and the consumers of their products. Competition stimulates progress and reasonable pricing.
 
Market Leader and Masterforex-V Academy would appreciate if you could participate in a survey. Please, visit the Academy’s forum for traders and investors and answer the following question:
 
Will Nissan manage to catch up with Toyota?

 

 

 

You are free to discuss this article here:   forum for traders and investors

 

Add to blog
Got a question? – Ask it here »
 

Microsoft Doesn’t Count on Big Profits in 2015

 

Microsoft, the world-famous tech giant from the USA, reported about its financial performance in the forth quarter of 2014, which ended on December 31st. According, to the Hi-Tech Department of Masterforex-V Academy, the corporation’s net profits seen over the period of October through December reached $5,9 billion. For the same of comparison, the same figures seen 12 months before indicated $6,6 billion. With that said, this was a 10% decline in Microsoft’s quarterly net profits.

Publication date: 28 January 05:04 AM

Google Updates iOS and Android Apps

 

Not so long ago, Google updated its office apps for mobile devices powered by Android and iOS. According to the Hi-Tech Department of Masterforex-V Academy, Google updated the following apps: Docs, Slides and Sheets. The apps underwent minor design improvements and some new functions and features.

Publication date: 27 January 11:03 AM

Intel: Computer Cost Will Continue Going Down

 

It is reported that the profit of Intel, the world’s biggest manufacturer of computer chips, boosted in the 4th quarter of 2014. This is the sign that the global demand for desktop computers and laptops increased over he reporting period, Market Leader reports. According to the Hi-Tech Department of Masterforex-V Academy, the tendency is probably going to be seen this year as well.

Publication date: 22 January 01:40 AM

Why Doesn’t OPEC Fight Low Oil Prices?

One of the most burning problems of the contemporary society is the ultra low price of crude oil worldwide. Still, it is surprising to see that the OPEC, which is a union of some of the world’s major producers and exporters of crude oil, is still reluctant to start cutting down on their oil production. If you have been in financial markets for a while, you probably know that amid declining global demand for crude oil (mainly triggered by the economic slowdown in China - the world’s second biggest economy and the biggest consumer of crude oil), the steady and high level of oil production leads to oversupply at all times. Apparently, oversupply triggers a price collapse. The bigger it is, the harder the prices fall eventually. This is the case in the global market of crude oil right now. The prices have already fallen by more than 50% since its local highs set in mid 2014.

Publication date: 21 January 12:08 PM

Market Participants Expect Lower Oil Prices On Forthcoming News From China

 

Oil price seem to never stop going down since mid 2014. Yesterday, the prices went down a little bit as well. The thing is that the market seems to be reacting this way to the expectations of poor economic stats ,which are about to be released in China, the world’s biggest consumer of crude oil.

Publication date: 19 January 10:22 AM

History Hints At Long-Term Oil Prices Below $50/b

Judging by today’s situation, many experts do not doubt that crude oil may well stay below $100/b forever. At the same time, more experienced analysts are not in a hurry to make such brave predictions. Still, they agree with them to the extent that oil prices are probably going to stay low for quite a long period of time. In particular, they name serious levels below $50/b.

Publication date: 16 January 03:54 AM

The Times Assumes That Crud Oil Prices May Well Drop to $20/b

According to the observers working for The Times, this may well not be the end of the never-ending price decline in the glob oil market started in mid 2014. In other words, hey assume that crude oil may find the price bottom somewhere around $20 per barrel if the worst-case scenario manifests itself, Market Leader reports.

Publication date: 16 January 03:19 AM

Apple Secretly Tests iOS9

 

According to some unofficial online sources, Apple has already started testing the next version of its operating system for mobile devices. It is likely going to be called iOS9. Those resources site visitor stats as some kind of confirmation of this rumor , Market Leader reports.

Publication date: 14 January 09:20 AM

Former IMF Chief Economist Doesn’t Deny Oil Price Recovering Up To $100/b.

Kenneth Rogoff, a professor of economics and the former Chief Economist of the International Monetary Fund, assumes that oil prices may well recover up to $100/b in the mid-term future. In particular, he says that he doesn’t believe in the idea supported by many financial experts regarding the supposition that oil prices are never going to come back to the levels seen in mid 2014. On top of that, he assumes that sooner or later oil prices are going to see $100 per barrel or higher.

Publication date: 14 January 07:49 AM

World Bank Predicts Low Oil Prices In 2015

 

At this point, never ending expectations of even lower prices on crude oil and oil products jeopardize geological prospecting and development of new conventional oil fields, not to mentioned shale oil fields. Well, it sounds quite logical and natural since no company wants it business to be unprofitable, Market Leader reports. All of this is confirmed by the latest report released by the World Bank.

Publication date: 12 January 05:18 AM