Himanshu Patel
Himanshu Patel
although becoming ford north pace production upbeat worry
Although we are becoming more upbeat on the pace of restructuring, we worry about Ford North American production outlook, particularly in 2007.
although believe demise further move sentiment speed toward
Although such a move has been rumored for some time, we believe the speed of Dana's demise will nonetheless further dampen sentiment toward the sector.
although auto demise further move sentiment speed toward
Although such a move has been rumored for some time, the speed of Dana?s demise will further dampen sentiment toward the auto industry.
accounting change concerns internal issues none raise thesis
While none of these issues are enough to change our thesis on GM, they do raise our concerns on the company's internal accounting controls.
avoiding further interest labor likely points resolution sale sticking
One of the likely sticking points in the pending sale of GMAC may well be resolution on Delphi, further emphasizing GM's interest in avoiding a labor dispute.
cannot timing
timing of this pending divestiture cannot be overlooked.
admittedly ahead given performance potential recent reluctant weak
While fundamentals are admittedly weak, given the stock's weak recent performance, we are reluctant to get incrementally bearish, particularly ahead of a potential restructuring announcement.
beat britain expecting fairly forecasts france guidance holding key markets reaffirm reasonably share upbeat
We are expecting PSA to beat their forecasts and to reaffirm fairly upbeat guidance for 2003. Their key markets of Britain and France are holding up well and their market share is reasonably healthy.
assist care extract gm health likely opportunity risk
We think GM will see it as more of an opportunity than a risk to assist in a Delphi bailout, as it will likely be able to extract sizable UAW health care concessions in return,
correction maintain overweight recent safety vehicle
We maintain our overweight (rating), as we think a recent correction in this well-diversified vehicle safety supplier has been unjustified.
diesel european production slowing weigh western worries
However, near-term worries on slowing diesel penetration and Western European production could weigh on the stock.
bringing cap caps forcing forth gm inflation issue management similar suggest talks top
By forcing a health-care inflation cap for salaried workers, GM is bringing forth the issue of similar caps for hourly workers, which our talks with (GM) management suggest is a top priority.
likely management market parameters putting
The market is likely to be reassured that management is now putting firmer parameters around 2006 performance.
belief company cost earnings heightens likely meaningful reassure rebound targets
The company's specificity on 2006 cost targets ... is likely to reassure the market, and heightens our belief that the company will see a meaningful earnings rebound in 2006.