Thursday, March 13, 2014

Starting a Position in Toyota (TM)

I placed a limit order for a 1/3 position in TM today....$110.55.  More to come.


Toyota caught my eye last week for a few reasons.  1)  The stock is beaten up pretty good price-wise:

2)  It looks nicely undervalued per FASTGraphs:

Earnings are healthy and rising for the worlds #1 automaker (sorry friends & family at Ford).  And they pay a dividend, though the 4.9% shown here is an error.  They pay semi-annually, so it's actually 1/2 the yield listed, or around 2.4%.

3)  Sticking with the undervalue theme, the PE is at historic lows:

In summary, great company, undervalued, pays a growing dividend, #1 in it's industry.  Good entry point.


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