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Monday, 27 June 12:36 (GMT -05:00)



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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?

 

 

 

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ArmPhone – Technological Breakthrough at the Market?

On June 06 Armenia presented a unique development at technology market – Armenian smartphone. As informed to the “Market Leader” a large company Technology and Science Dynamics has become the manufacturer of ArmPhone.

Publication date: 11 June 08:24 AM

Information about iPhone 7 “Spils” into the Web

New model of smartphone from Apple – iPhone 7, will get one more color, but get rid of plug connector for headphones. Such information about the popular gadget appeared in global network.
 
Publication date: 10 June 05:03 PM

Oil Market: Price Goes Up

Price of benchmark crude oil keeps rising, on Wednesday, June 08, it was trade close to maximal points for 11 months after publication of data on stocks of fuel in the United States of America.

 
At London stock exchange ICE Futures quotations of August futures of Brent oil blend have risen by 0.91 USD (1.77 percent) – to 52.35 USD per barrel.
Publication date: 10 June 05:51 AM

Who Needs High Oil Prices?

The world community is watching a price drop at the market of energy resources. The situation is most complicated for countries, the budget of which initially counted on high earnings from oil.
 
One can say for certain that most dependent on oil profits are countries that export the energy carrier to the world market in big volumes. Such countries often show slipping to dictatorial forms of government. When they switch to dictatorship, these countries can no longer restrain growth of oil recovery in neighboring countries.
Publication date: 09 June 06:16 PM

Oil Market: Brent Goes Beyond 51 Dollar

The price of Brent oil blend has jumped over the mark of 51 USD per barrel at London stock exchange ICE. Namely, on Wednesday, June 08, the price of one barrel of sample grade has amounted to 51.05 dollars – the highest value since last October. This is proved by information from trading grounds.
 
Publication date: 09 June 08:51 AM

Oil Market: Moscow Loses Interest to OPEC

Price of oil is rising again, but this is not enough for producer countries. Quotation of 50 dollars per barrel is “not the best possible variant”. 
 
“Nobody invited us,” says Anatoly Yanovsky, Russian Deputy Energy Minister, continuing to show indifference to OPEC summit in Vienna. Large players at the market of petroleum are again trying to rise; at the same time, after the summit in Doha, which was held in mid-April, representatives of the RF have stayed at home: Moscow has not even sent to Vienna even its technical observers. Less than two months ago the Russian leader was doing everything possible to bring Iran and Saudi Arabia to agreement; he was an intermediary between two rivals , which divide raw material market and the Middle East, and tried to convince them to freeze fuel production in order to stimulate rise price. Today, when the value of petroleum has risen from the minimal point to almost 50 dollars per barrel, the Russian Federation prefers waiting. “Oil price has gone up, which makes the question of freezing oil production lose its topicality,” said Aleksander Novak, Energy Minister of the RF.
Publication date: 09 June 01:01 AM

Saudi Arabia Freezes Oil Recovery till 2020

Saudi Arabia continues looking for ways to considerably reduce its dependence from petroleum as soon as possible. The country’s government has recently approved the plan of economic reforms, developed mostly for solving the abovementioned task. According to this plan, the level of “black gold” recovery in the country has to be frozen at the same level till 2020.

Publication date: 08 June 10:26 AM

Oil Market: Experts Call the Price Rise Timely

Energy market is showing certain recovery of oil price. Experts are certain that the rise is temporary, as pressuring factors remain topical.
 
Ministers of countries-members of OPEC are going to hold a meeting to discuss market strategy and current situation. The previous meeting was held last December. Since then oil has already managed to drop by one third, and then regain 80 percent of its value. Last month North Sea oil brand Brent gained 9 percent.
Publication date: 07 June 09:00 AM

Apple can Release iPhone Once in Three Years

Apple may refuse from traditional update of iPhone once in 2 years and increase this term. From now on a new model of iPhone will appear only once in 3 years. In between the release of new models the company will improve the previous version.

Publication date: 05 June 07:21 AM

Market Rates 4-Incher iPhone SE

A 4-incher screen iPhone SE has entered the market a short while ago, but users’ reaction to it can be compared to that to iPhone 6 Plus, when Apple has changed the body design and increased a form-factor. Experts and users have divided into two groups – some suppose that Back to Basics is a logical and correct step, whereas others are certain in failure of the novelty.

Publication date: 04 June 12:07 AM