Comments on: More Toyota Cars Recalled: Time to Buy Shares of TM?

By: Anonymous

Anonymous — Thu, 10 Jun 2010 12:21:00 +0000

My family owns two Toyotas under recall – we aren’t that concerned about the problem and are still driving the cars as we normally would. The financial health of the company is very strong – this downturn provides a buying opportunity.
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@Jackson

By: Maren Kate

Maren Kate — Fri, 29 Jan 2010 09:35:32 +0000

I think this recall will probably make a dent in Toyota’s bottomline but then I applaud them for thinking of “Safety First before Profit”.

By: Flexo

Flexo — Fri, 29 Jan 2010 06:57:30 +0000

Right now? No, I wouldn’t buy a Toyota until I was relatively sure these problems had been fixed. But unless Toyota really screws up, I think people will generally forget about these problems some years from now and Toyota will continue to have a great reputation. I’m coming up on 120,000 miles on my Civic with a some good years still left — but I think my next car might be a little more “fun” depending on my financial situation at that time.

By: Financial Samurai

Financial Samurai — Fri, 29 Jan 2010 06:25:57 +0000

Might be a short term blip, but if you were in the market to buy a car, would you even bother to buy a toyota with the risk your accelerator pedal could stick?

I wouldn’t. I’d just buy a Honda. Too bad Toyota is in The Samurai Fund! grrrrr

By: Ace of Wealth

Ace of Wealth — Fri, 29 Jan 2010 05:07:21 +0000

I agree with bb’s analysis here. I think that Toyota is moving towards a bargain, but the time to buy doesn’t seem like it’s just yet. I think it’ll be interesting to see how this affects their current quarter, and also how it affects their outlook on the next quarter.

By: jc

jc — Thu, 28 Jan 2010 22:30:14 +0000

go to la times.com and read the story about TOYOTA FOUND TO KEEP TIGHT LID ON POTENTIAL SAFETY PROBLEMS. VOLUNTARILY RECALL WELL THAT BS

By: bb

bb — Thu, 28 Jan 2010 19:41:54 +0000

How does this impact this year’s earnings? What’s its P/E? Let me tell you, its forward P/E (2011) is still at 23.7 (still higher than F’s 21 current P/E). It’s not a bargain, at least at this point.

By: Recall

Recall — Thu, 28 Jan 2010 18:10:08 +0000

I would not recommend ANY automakers stock, the industry is as good of a bet over the next few years as the airline industry has been for the last ten years.Honda and the Koreans are probably the best positioned right now.

I agree that their image isn’t damaged beyond repair, but remember that they were the big winner in cash for clunkers and the domestics were the losers in it. For most of THESE new buyers this is their first exposure to the brand, and so far they probably aren’t very impressed. Also they are burning through their cash reserves, the Yen is strong, and they are still losing money on full size trucks and suv’s. The recall isn’t their only problem right now.

You do have to ask yourself though, how many people who have a recalled vehicle will get into an at fault crash and blame the pedals? Theres really no way to prove against it for Ty, and they could have to spend big $$$ repairing vehicles in accidents they may not in fact be responsible for.

http://www.wisn.com/automotive/22366110/detail.html

By: jnwcmr

jnwcmr — Thu, 28 Jan 2010 17:03:53 +0000

The key phrases I see in the article are “Toyota issues a voluntary safety recall”, “Toyota added to its recall”, rather than “Toyota forced to recall”. I recall the Ford Bronco issue several years ago, when they came out and said that would rather defend against lawsuits than produce safe cars.

I don’t currently own a Toyota, but I have a lot of respect for an automaker that voluntarily STOPS SELLING CARS until they are satisfied that they are safe for their customers.

So, to Flexo’s question: I think this is a buying opportunity for those who still dabble in individual stocks.

By: KC

KC — Thu, 28 Jan 2010 16:58:31 +0000

This is an opportunity to buy. This isn’t a big deal recall eventhough its getting a lot of press. The incidents are isolated, but Toyota is taking major steps on this recall to prevent future problems. Other car companies would likely sweep this under the rug and not recall their cars so quickly so as to avoid the negative publicity. My family owns two Toyotas under recall – we aren’t that concerned about the problem and are still driving the cars as we normally would. When Ford had problems with their Firestone tires we were much more concerned about the Explorer my father owned (in fact he went out and replaced the Firestone tires with Michelin). My point in this ramble is that Toyota is being proactive and making a bigger deal than it is in the name of safety. The financial health of the company is very strong – this downturn provides a buying opportunity. Watch this stock for a few more days and don’t buy until they have the parts necessary for the “fix” (Toyota says they are waiting on the “fix”).

By: Investor Junkie

Investor Junkie — Thu, 28 Jan 2010 16:56:13 +0000

Buying OP! But not sure if it’s hit bottom yet. I suspect in the next few weeks might be better.

By: MoneyMateKate

MoneyMateKate — Thu, 28 Jan 2010 16:39:58 +0000

Yes, I totally see this as a buying opportunity. I just don’t see Toyota going under, so let’s go shopping for a bargain on the stock market! Worked for me with AIG last year. I’d love to guess when it’ll hit rock-bottom, but I’m not so good at that part.