Will Chavey

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  • How Google Hopes to Disrupt the Auto Industry

    By Will Chavey - August 19, 2013 | Tickers: CTTAY, GM, GOOG, TM, VLKAY

    A couple of months ago, Google (NASDAQ: GOOG) CEO Larry Page opined that driverless cars could “change our lives, give us more green space, mobility, fewer hours wasted. The average American spends 50 minutes commuting. Imagine if you got that back.”

    Of course, it’s easy to be skeptical of Google’s high aspirations. However, Google is not alone in touting the future of driverless cars. A General Motors (NYSE: GMmore »)

  • How Arcos Dorados Can Succeed as a Franchisee

    By Will Chavey - August 16, 2013 | Tickers: ARCO, BKW, TAST, MCD

    A few years ago, amid the pending IPO for McDonald’s (NYSE: MCD) franchisee Arcos Dorados (NYSE: ARCO), analysts began to question the franchisee system’s profitability. Some pointed to franchisor advantages, others to the underwhelming history of franchisees. What's more, those concerns have seemingly turned out to be true; shares of Arcos Dorados have struggled tremendously since the IPO. It’s fair to ask: were those criticisms warranted more »

  • What Big Earnings Reports Mean for These 3 Stocks

    By Will Chavey - August 15, 2013 | Tickers: ARCO, VC, WCG

    As the August heat beats down, a few companies always jolt us out of our summer stupor with big moves on earnings days. Here’s a look at a few companies that created a lot of buzz after reporting earnings, and whether their future growth warrants so much enthusiasm.

    Feeding earnings

    McDonald’s franchisee Arcos Dorados (NYSE: ARCO) missed EPS estimates by $.02 but scored big on revenue. Sales grew more »

  • The Newest Trend for Japan's Big 3

    By Will Chavey - August 13, 2013 | Tickers: F, GM, HMC, NSANY.PK, TM

    Recently, I wrote about why I think General Motors (NYSE: GM)’s cost-cutting strategies will drastically improve its bottom line. Apparently, Japanese automakers agree. During the first half of 2013, each member of Japan’s “Big 3” announced plans to adopt strategies similar to those that GM recently began.

    What GM started

    Rival automakers Ford (NYSE: F) and Volkswagen actually headlined the movement, with Ford's cost-cutting measures set to more »

  • In a Risky Market, Safe Stocks Are Often not the Answer

    By Will Chavey - August 8, 2013 | Tickers: HINOY, NSANY.PK, TM

    It’s no secret that investors often look for “safer” investments during periods of uncertainty. And so, as investors and analysts approach the upcoming months with a combination of trepidation and cautious optimism, many investors may start to move toward those low-risk stocks. Here’s the catch, though: That’s not always a good move.

    What makes an investment “safe?" Presumably, when it’s less risky. For example, a savings more »

  • Strong Supplier Earnings Suggest Booming Autos Growth

    By Will Chavey - August 8, 2013 | Tickers: ALV, DLPH, F, TEN, TM, TRW, VC

    A little over a month ago, Scotia Bank released a global auto report, predicting a modest-but-respectable 4.3% uptick in auto sales for 2013. As second quarter earnings reports roll in, it might be time to question whether that’s a bit low.

    Auto manufacturers themselves calmed investors with strong second quarters, but the correspondingly robust quarter for their suppliers promises repetition of that success later this year. When suppliers more »

  • 3 Reasons to Buy Ford Today

    By Will Chavey - August 8, 2013 | Tickers: F, GM, TM, VLKAY

    During the past year, Ford (NYSE: F) has been, by far, my best performing stock, dragging an otherwise mediocre portfolio to a big year. Just like everyone else, I hate to see a great performing stock lose its hard-earned value, so a small part of me wants to sell Ford before it's too late. Yet, the more analysis I do, the more I realize that selling Ford would be more »

  • Why Everyone Needs to Relax About Coal

    By Will Chavey - August 6, 2013 | Tickers: CHK, CNX, CSX, BTU

    A few days ago, Fool analyst Michael Olson added CSX (NYSE: CSX), a freight railroad company that dominates the east coast, to his real-money portfolio. Of course, that recommendation hinges in large part on the continued success of coal, which currently accounts for approximately 40% of U.S. energy. Despite a near-consensus bear attitude toward coal, reasons for optimism remains.

    Coal prices might go up—but not too much

    As more »

  • Same Sales, More Profit: GM Hoping to Boost Margins

    By Will Chavey - August 5, 2013 | Tickers: DDAIF.PK, F, GM, TM, VLKAY

    For a three-year period from 2010 to 2012, auto manufacturer General Motors (NYSE: GM) generated a staggering $438.1 billion in total revenue. During that same period, cross-town rival Ford (NYSE: F) managed only $399.5 billion, or almost 10% less than GM.

    And yet, on gross profit, Ford came out on top—and it wasn’t even close. Ford’s three-year profit totaled $69 billion, almost 50% more than more »

  • It's Time to Buy America's "Big 3"

    By Will Chavey - June 28, 2013 | Tickers: DDAIF.PK, FIATY.PK, F, GM

    Home to the Bad Boys, Smokey Robinson, and the 11-time Stanley Cup Champion Redwings, Detroit will always be famous for one thing: cars. For years, the dominance of the “Big 3”—Ford (NYSE: F), General Motors (NYSE: GM), and Chrysler—helped power a Midwestern city with little else to its economic name.

    Of course, the 2008 crisis highlighted how much the times have changed, but an impressive recovery has put more »

  • How Coal Could Stay Profitable

    By Will Chavey - January 28, 2013 | Tickers: BP, CSUAY, D, BTU

    There are few certainties in the world outside of Cleveland professional sports struggling and U.S. dominance in the fast food industry, but another apparent given is this: coal will slide as a leading energy source. And that may be true – in the United States. Elsewhere, the industry looks poised to soar, and UCG (Underground Coal Gasification) will play an enormous role.

    UCG allows companies to convert the coal into more »