For Immediate
Release
Chicago, IL – May 16, 2012 –
Zacks.com announces the list of stocks featured in the Analyst
Blog. Every day the Zacks Equity Research analysts discuss the
latest news and events impacting stocks and the financial markets.
Stocks recently featured in the blog include The
Clorox (CLX), General Motors
(GM), Volkswagen AG (VLKAY), Toyota
Motor (TM) and Ford Motor (F).
Get the most recent insight from
Zacks Equity Research with the free Profit from the Pros
newsletter: http://at.zacks.com/?id=5513
Here are highlights from
Tuesday’s Analyst Blog:
Clorox Raises
Dividend
Amid the prevailing economic
uncertainties, investors are always on the lookout for the best
possible return from stocks in their portfolio. In a bid to boost
shareholder return, The Clorox
Company (CLX) recently increased its quarterly dividend by
6.7% or 4 cents to 64 cents per share. Earlier, the company used to
pay 60 cents per share.
The increased dividend will be paid
on August 10, 2012 to the shareholders of record as of July 25,
2012. The annualized dividend yield based on the increased dividend
and current stock price is 3.7%.
Previously, on May 18, 2011, Clorox
raised its dividend to 60 cents from 55 cents per share, reflecting
an increase of 9%.
Dividend increase has emerged as a
trend among companies having a stable cash position and healthy
cash flow. The dividend hike not only enhances shareholders’ return
but also raise the market value of the stock.
Following the same trend, Clorox
raised its dividend on the anticipation of higher free cash flow
generation. Clorox expects to generate free cash flow of about 9%
to 10% of sales during fiscal 2012 and 2013. Moreover, the
company’s assertion of increase in dividend clearly signifies the
ability to generate liquidity and its potential to improve in the
long-run.
Chinese Auto Sector
Picking Up
China’s auto sector was rejuvenated
in April by posting 5% growth in sales to 1.62 million vehicles
after recording a slack first quarter of the year. However, sales
in the first four months of the year slid 1.3% to 6.4 million
vehicles, owing to tighter credit policies and slower economic
growth.
In January-March, auto sales fell
3.4% compared with a handsome 32% growth in 2010 due to stricter
government regulations on new car registrations in order to control
the traffic congestions and the same factors stated above.
According to China Association of
Automobile Manufacturers (CAAM), passenger car sales rose 12.5% to
1.28 million vehicles during the month. Although the spike in sales
growth during the month can be attributable to depressing
comparable month of last year on the back of disruptions caused by
the twin disaster in Japan on March 11, 2011, there is no way we
can undermine the impact of other factors on sales.
In fact, some economists and auto
trade associations believe that April sales clearly show a trend
towards recovery as surveys indicated increasing manufacturing
activity during the month. Further, they expect global demand for
Chinese exports to improve.
Shanghai Automotive Industry
Corporation (SAIC) – the top-automaker in China –registered a 12.6%
rise in sales to 367,600 vehicles in April. Sales at its joint
venture with General Motors Company (GM) slipped
0.1% to 97,656 cars and with Volkswagen AG (VLKAY)
increased 10.2% to 110,255 vehicles.
GM’s total sales in China grew
11.7% to 227,217 vehicles. Shanghai GM sales went down 2.2% to
94,101 units while SAIC-GM-Wuling sales went up 27 % to 127,362
units.
Toyota Motor
Corp.’s (TM) sales surged 68% to 82,000 vehicles in the
country. The higher sales growth can be attributable to a weaker
comparable month of 2011 following the Japan disaster.
Meanwhile, Ford Motor
Co. (F) recorded a 24% rise in sales to 54,881 units
driven by strong demand for the new Ford Focus, which is the first
of the 15 new vehicles the automaker plans to introduce in China by
2015.
Sales at Changan Ford Mazda
Automobile Co.– a three-way joint venture with Chongqing Changan
Automobile Co. and Mazda Motor Corp.– totaled 34,108 units in
April, up significantly by 30% from April last year. Meanwhile,
sales at Jiangling Motors Corp., the company’s commercial vehicle
joint venture, registered a 16% growth to 20,773 vehicles during
the month.
In April, U.S. saw sluggish 2.3%
growth in light vehicle sales in April 2012 to 1.18 million units
from 1.16 million units in the same month last year. Meanwhile, it
rose 9.5% to seasonally adjusted annual rate (SAAR) of 14.42
million units from 13.17 million units in April 2011.
The sluggish growth can be
attributable to lower sales recorded by GM and Ford, and fewer
selling days (due to more Sundays than April last year). But thanks
to the fuel-efficient lineups and pent up demand that kept the auto
sales recovery in the U.S. on track.
Auto sales in China had grown at a
double-digit pace since 1999, except in 2008 when the global
economic crisis crept in. In 2009, China overtook the U.S. as the
biggest auto market in the world by sales volumes when the Beijing
government introduced a stimulus package, including tax incentives
for small cars with engine sizes of 1.6 liters or smaller.
However, the incentives were
scrapped last year and the Beijing government imposed quotas on new
car registrations in order to control the traffic congestions. As a
result, new car deliveries plummeted 56% to 403,500 units in
2011.
Nevertheless, China’s automotive
industry outlook is promising in 2012. According to CAAM, car sales
in 2012 is expected to grow by 9% in the country, which is much
higher than 2011 (5.2%). With a little support from the government
to remove sales barriers, we believe the world’s largest auto
market could reach the summit.
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CLOROX CO (CLX): Free Stock Analysis Report
FORD MOTOR CO (F): Free Stock Analysis Report
GENERAL MOTORS (GM): Free Stock Analysis Report
TOYOTA MOTOR CP (TM): Free Stock Analysis Report
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