Toyota (TM) Hits 52-Week Low

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By Douglas A. McIntyre Published
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It really does not make any sense. The world’s largest and most profitable car company should not be at a 52-week low. But, it is. Yesterday, Toyota (TM) dropped to $107.68 on the US market, down from a 52-week high of $138.

Much of this is probably an emotional reaction in the market to the UAW deals that are getting done with GM (GM) and Ford (F). These should make manufacturing of cars more cost efficient for the US auto companies, but it will not improve their sales. Toyota is still gaining market share in the US

Another reason for the Toyota low is that cars sales in its home market of Japan are slow. But, the company has so much opportunity overseas that, by itself, the news should not take the shares down this much.

In the meantime, Ford and GM are near 52-week highs. They are still at awful prices, about .15x sales. Toyota can take comfort that it trades closer to .9x sales. a huge premium.

Cold comfort for people who bought the stock at $130.

Douglas A. McIntyre

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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