Peugeot SA shares
Discussion
Mrs AF has some Peugeot shares from a company scheme.
She has to make a choice to sell or hold.
Peugeot shares are rock bottom just now, PSA have had a rough time with too much reliance on euro markets. They have reduced costs made redundancies and closed some plants etc. Plans are to develop non euro markets and return to profit in 2014 (but who can tell)
http://www.google.co.uk/finance?q=EPA:UG&ei=Qy...
What to do cut losses or hope for a return to prosperity?
She has to make a choice to sell or hold.
Peugeot shares are rock bottom just now, PSA have had a rough time with too much reliance on euro markets. They have reduced costs made redundancies and closed some plants etc. Plans are to develop non euro markets and return to profit in 2014 (but who can tell)
http://www.google.co.uk/finance?q=EPA:UG&ei=Qy...
What to do cut losses or hope for a return to prosperity?
Sorry link probably doesn't work for most.
Here is a brief lump of text
Bulls Say
• Demand for Peugeot's low-emissions vehicles should benefit from increasingly stringent environmental standards.
• The PSA group is the second-largest automaker in Western Europe. The company is also a leading manufacturer of light commercial vehicles in Western Europe.
• The company has some partnerships that modestly bolster operating leverage, including Chinese joint ventures with Dongfeng and Changan, shared development of vehicle platforms with General Motors, Toyota, Tofas, Fiat, and Mitsubishi, and the development and manufacture of gearboxes and engines with Ford, BMW, and Renault.
Bears Say
• To truly be a global competitor, taking advantage of global operating leverage and capitalizing on growth markets, the company needs a major partnership or merger. However, the Peugeot family staunchly opposes any combination between PSA and other automakers where PSA might lose its independence and its distinctly French culture.
• Nearly 90% of Peugeot's work force is located in the highly unionized European region, a threat to profits if workers demand wage increases or if they resist labor cuts.
• The European auto industry suffers from a high level of overcapacity that increases pricing pressure, in turn squeezing economic profits.
• Peugeot is heavily influenced by socialist French government and unions. As a result, the company has difficulty closing manufacturing facilities, let alone reducing head count, severely constraining its ability to eliminate excess capacity.
It's a Hold.
Here is a brief lump of text
Bulls Say
• Demand for Peugeot's low-emissions vehicles should benefit from increasingly stringent environmental standards.
• The PSA group is the second-largest automaker in Western Europe. The company is also a leading manufacturer of light commercial vehicles in Western Europe.
• The company has some partnerships that modestly bolster operating leverage, including Chinese joint ventures with Dongfeng and Changan, shared development of vehicle platforms with General Motors, Toyota, Tofas, Fiat, and Mitsubishi, and the development and manufacture of gearboxes and engines with Ford, BMW, and Renault.
Bears Say
• To truly be a global competitor, taking advantage of global operating leverage and capitalizing on growth markets, the company needs a major partnership or merger. However, the Peugeot family staunchly opposes any combination between PSA and other automakers where PSA might lose its independence and its distinctly French culture.
• Nearly 90% of Peugeot's work force is located in the highly unionized European region, a threat to profits if workers demand wage increases or if they resist labor cuts.
• The European auto industry suffers from a high level of overcapacity that increases pricing pressure, in turn squeezing economic profits.
• Peugeot is heavily influenced by socialist French government and unions. As a result, the company has difficulty closing manufacturing facilities, let alone reducing head count, severely constraining its ability to eliminate excess capacity.
It's a Hold.
Peugeot is valued at €1.5 bil by the stock market which tells you all you need to know......it's finance arm Peugeot Bank has just received a government bail out because it couldn't finance itself. The good news is that there's no way Hollande will let Peugeot go bust if he can avoid it, the bad news is that the EU can stop him doing what he would like to.
Peugeot's issue is that it's main markets are in the s
tter.....it's a bet on the economy in France and Southern Europe.
Peugeot's issue is that it's main markets are in the s
tter.....it's a bet on the economy in France and Southern Europe. Gassing Station | Finance | Top of Page | What's New | My Stuff