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Stock of the day Honda symbol HMC (not spam)

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From the Louis Navellier facebook page. If you want the stock of the day you have to "like" him. Today the stock was Honda so I though I'd pass along his advice.

My disclaimer: do your own research, this is not a recommendation to buy or sell I take no responsibility for the information below yadda yadda yadda......:biggrin:


Welcome to the Stock of the Day for January 11, 2012. Auto companies are getting a lot of attention so today we're going to take a look at Honda Motor Co. (HMC) and see how the auto manufacturer fared in 2011.

2011 in Review: The past year wasn’t easy for the Japanese carmaker. For the first time ever, annual car sales in China dropped while U.S. manufacturers accelerated. In addition, Honda had the most vehicles recalled in 2011, with 3.8 million cars and trucks recalled as well as 130,000 motorcycles. The leading cause was a rash of faulty air bags. And of course, the Japanese earthquake in March and flooding in Thailand disrupted the company’s production, causing its total annual sales to fall 6.8%.

Industry Breakdown: Honda Motor Co. is the 13th largest company in the Auto Manufacturers industry. Its 2.2% dividend yield is the second best in the industry. However, in terms of sales growth, earnings growth and return on equity, this company lags behind most of its competitors.

Current Ratings: Before you buy any stock, you should always run it through my free Portfolio Grader ratings system. This stock has been on a steady decline for the past year, having dipped into sell territory. And it doesn’t look like it will be making a recovery anytime soon. All eight of its fundamental variables are D- or F-rated. To top it off, buying pressure for this stock is quite weak, giving this stock a D rating overall.

Bottom Line: I recommend that you sell this stock. Honda is lagging behind Toyota and Nissan on several fronts, and supply disruptions haven’t helped this company’s outlook.
 
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