Domestic auto sales are heating up, and this perennial favorite is stepping up its marketing. The shares are trading at a discounted P/E, just under 11.
Honda Motor ADRs (HMC)
from PAD System Report
Honda Motor ADRs (HMC) is ranked “1” for year-ahead performance, and “2” for Safety, and has 3-5 year appreciation potential of 65-85, which is double the current quote. The addition of the dividend makes the total return to the low-end of the range equal to 19%, which satisfies Rule 1C of the PAD-C strategy.
In addition, Honda, a worldwide manufacturer of automobiles and motorcycles, will give us more industry diversification, and geographic diversification. Honda also invests over 5% of sales in R+D, which is excellent for a non-tech PAD company. Honda also has a beta of 0.95.
New PAD subscribers, who are at 50% cash reserves or higher, can purchase Honda as part of a strategy which gradually reduces their cash holdings to 50%.
Daniel A. Seiver, PAD System Report, www.padsystemreport.com, Dept of Finance, S.D.S.U, San Diego, CA 92181, August 24, 2014