Investing 102

[Vince@Meanstreets]

Originally Posted by sik68

Here's my $0.02 on VLKAY, fwiw.

So far, it has 'only' crashed ~50% since the news was released. The timeline on this recovery is likely very long...it certainly won't be a bounce. So the first opportunity cost question: is there another company to invest in, without the baggage, that could outpace VLKAY?

I'm sure the retrofit of the 09-14 cars will be relatively economical, and the fines will be manageable... I would still be a buyer of their stock if those are the only headwinds they face. BUT the worst thing they did for their business was scare finicky customers. I think their near term sales will be in the toilet (fear) and long term sales will suffer (conquest sales by other brands). The PE will get back to normal... but it will be due to the E.

That says, if it goes substantially lower (another 20%?), I'd think I'd be a buyer.

I think this down turn will be short lived since heads are getting chopped and Porsche will take the leads for some time. It will drop further as soon as the news comes out on how many vehicles were affected and who was involved. Just this morning they reported that cars overseas had "issues" too.

Good buying long term opportunity sure. Typical over reaction, reaction then recovery cycle with a scandal. For me im a chicken chit investor, I avoid the auto industry because there are so many outside influences that can "modify" the prices.