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

Wednesday, 1 July 02:30 (GMT -05:00)



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 »
 

Samsung Galaxy A8 - Thinnest Smartphone Ever!

 

According to the official website of the Chinese Telecommunication Equipment Verification Center, Samsung has registered a new smartphone, which means that Samsung Galaxy A8 is going to be officially announced soon.

Publication date: 24 June 04:51 AM

Fort Financial Services on Best Ways of Investing in Gold

These days, success in FX trading heavily depends on perfect timing in terms of reacting to fundamental factors like economic, political and financial news and stats. The thing is that the behavior of any asset traded in financial markets is closely tied to certain events. On top of that, assets have tight relations with each other. In particular, even the slightest changes in commodities (crude oil etc.) or major currencies may trigger some changes in, say, GBPJPY or CFDs for crops… not to mention interest rates set by the world’s leading central banks or news by the Fed and the ECB. Ignoring fundamentals is like jumping into the swimming pool full of hungry alligators. The chances of surviving are miserable. This way, it is necessary to feed the alligators to save you life.

Publication date: 16 June 12:18 PM

ActivTrades on Benefits of Trading Commodities

 

For many traders worldwide, commodities have been the major assets allowing them to generate substantial profits. The secret behind such popularity is that commodities are rather volatile assets if to compare them to stocks or currencies. Increased volatility means higher risk and higher potential profits. Which means that you need to have a solid base to trade commodities profitably. This includes competitive trading conditions. At the same time, commodity traders have to obtain comprehensive and timely information about the traded assets, including market drivers, various factors influencing the pricing, news, tech analysis signals.

Publication date: 10 June 03:49 PM

Apple Works On 4-Inch iPhone 7C

 

As you probably know, Apple considerable increased the screen size of their latest smartphones - iPhone 6 and iPhone 6 Plus. Still, many users left negative feedback regarding this change. This leads us to believe that Apple is likely to go back to developing smartphones with moderate screen sizes.

Publication date: 08 June 06:22 AM

Google Announces Android M

 

During the recent conference I/O 2015, Google official announced a new mobile platform - Android M. At this point the new operating system is available to developers as Android M Developer Preview& The final release is scheduled for this fall.

Publication date: 08 June 05:35 AM

Russia Preserves Oil Production Despite Low Oil Prices

The Russian government is getting ready for the results of the OPEC meeting. Still, the release published by the analytics center says that the Kremlin was warned that Russia shouldn’t promote the idea of cutting oil production amid lower oil prices. Last fall, when Russia and Saudi Arabia had talks over the issue, a lot of experts were convinced that the OPEc and Russia may agree to start cutting their oil production a little bit to suspend the downswing of oil prices and to back the price recovery in the longer-term future.

Publication date: 07 June 07:44 PM

OPEC Loses Control Over Oil Market

At the end of this week, the OPEC is going to hold another summit in Austria. The summit is designed to discuss the cartel’s further moves, Market Leader reports. At he same time, the experts of Masterforex-V Academy assume that the summit is an urgent one since the OPEC seems to be losing control over the global market of crude oil.

Publication date: 02 June 05:30 AM

NYSE Welcomes Bitcoin Index

 

Bitcoin keeps on gaining strength in the global financial environment. This time, the crypto currency has deserved the recognition among American traders and investors. In particular, New York Stock Exchange launched the Bitcoin index, a new index designed to monitor the crypto currency and trade it, Market Leader reports.

Publication date: 26 May 03:20 AM

NordFX Names TOP 10 Providers of Forex Signals In April 2015

 

Nowadays, we have so many moneymaking opportunities that we don’t actually have to work day and night to generate a passive income regularly. Apparently, such an income may well outpace any monthly paycheck. There is no doubt that such opportunities can give you the key to higher standards of living leading you to true financial freedom provided that you know how to put them into practice to make your dreams come true.

Publication date: 25 April 02:47 PM

Apple Comments On WWDC 2015

 

Apple finally gave the world a clue on when the next conference named Worldwide Developers Conference (WWDC) 2015 is going to take place. According to the Hi-Tech Department of Masterforex-V Academy, those who are interested in Apple products will be able to visit WWDC 2015 on June, 8th through 12th in San Francisco at Moscone West to get acquainted to the next-generation iOS and OS X. Some reprinted sources assume that this is when Apple is going to announce iOS 9 and OS X 10.11.

Publication date: 16 April 05:48 AM