Solid Auto Sales Boost Physical Platinum and Palladium ETFs
Michael Johnston submits:After weathering a severe and prolonged downturn that saw multiple bankruptcies, unprecedented government intervention, and the near demise of the entire industry, American automakers finally have some good news to report. Ford (F) sold more cars than rival General Motors for the first time in 50 years in February (excluding two months in 1998 when GM was crippled by strikes), as car and light truck sales jumped more than 40% from the same period in 2009. Despite losing the monthly sales crown, GM reported a still impressive 11.5% bump over the previous year, while Toyota’s (TM) sales slumped following concerns over quality. Car-shopping Web site Edmunds.com recently reported that per-vehicle sales incentives in the U.S. fell 14% in February from a year earlier, indicating that the recent bounce in sales came without the aid of deep discounts that eat into profit margins. Ford is forecasting a pretax operating profit in 2010 after years of steep losses that saw market share and work force shrink. Ford’s stock price has gained more than 25% this year, including an 8% climb this week, rewarding investors who stuck with the beleaguered automaker. There is still no ETF focusing on the automotive industry (a glaring absence we can’t quite figure out), but several funds have received a nice boost from the auto industry’s improved outlook. Most notably, the Physical Palladium Shares (PALL) and Physical Platinum Shares (PPLT) from ETF Securities have been on the move this week.Complete Story »
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