How To Get Rich Buying Mazdas And Subarus

how to get rich buying mazdas and subarus

Some people like to bitch about the crafty Nips who are manipulating their currency again. Other people like to cash-in on sudden swings in currency valuations. If you are of the second kind, then Reuters recommends a look at formerly beaten-down stocks of Japanese carmakers who nearly went under during years of unfettered appreciation of the ¥en.

Reuters recommends a look at “ Mazda Motor Corp and Fuji Heavy Industries Ltd that are best placed to benefit from the weakening yen, raising their earnings forecasts as exported goods bring in more cash.” True, if you look for a quick trade, those two promise wild swings, simply because they are the most exposed to the currency. According to Reuters,

“Mazda makes 71 percent of its vehicles in Japan and exports about 80 percent of them, while Fuji Heavy makes about three-quarters of its cars at home, shipping about 67 percent of those.”

Both shares are a reverse proxy for the yen and already had quite a run-up as the yen cheapened. According to Reuters, “Mazda stock is the best-performing among Japanese automakers in the past three months, jumping 167 percent, followed by Fuji Heavy Industries’ 73 percent leap, both on expectations the weaker yen would boost their businesses.”

I recommend having a look at Nissan also. It’s a bit bigger than Mazda and Fuji’s Subaru, and better positioned in the world markets. It also is quite an interesting currency play. Sure, only 23 percent of its global production is still in Japan. However, and now you know why Carlos Ghosn was jumping up and down, waving his arms against the obscenely high yen for the last two years. Quite interestingly, when Ghosn went on his rampage against the deviant yen in late 2011, he called a high point of the obscene currency at 76 to the greenback. Today, a dollar buys 93 yen. The yen is still expensive, and a currency play buy buying Japanese car stocks could make you some money.

Others have similar ideas. Fuji was up 5.1 % today, Mazda 4.4%, Nissan is up 4.3%. Perversely, the company that is least dependent on exports from Japan, Toyota, was up 6 percent today in Tokyo. Can’t beat good financials on top of an improving currency situation. Also not that I said “formerly beaten down stocks.” The stock-in-question all had a good run-up in the past months. If the yen gets weaker, they will go up further. If Detroit gets its wish, you will lose money.

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  • Jim brewer Jim brewer on Feb 06, 2013

    Could be worse, I guess. My Dad the WWII veteran told me that GIs rarely referrred to the Japanese as "nips". They customarily referred to the Japanese as "yellow bellies"

  • Cgjeep Cgjeep on Feb 06, 2013

    My mom would never buy a Japanese car because of "what they did in WWII". Funny though she had no problem buying a Mercedes.

  • Bryan Raab Davis I actually did use the P of D trope, but it was only gentle chiding, for I love old British cars of every sort.
  • ScarecrowRepair The 1907 Panic had several causes of increased demand for money:[list][*]The semi-annual shift of money between farms and cities (to buy for planting and selling harvests)[/*][*]Britain and Germany borrowing for their naval arms race[/*][*]San Francisco reconstruction borrowing after the 1906 earthquake and fire[/*][/list]Two things made it worse:[list][*]Idiotic bans on branch banking, which prevented urban, rural, and other state branches from shifting funds to match demands. This same problem made the Great Depression far worse. Canada, which allowed branch banking, had no bank failures; the US had 9000 failures.[/*][*]Idiotic reserve requirements left over from the Civil War which prevented banks from loaning money; they eventually started honoring IOUs illegally and started the recovery.[/*][/list]Been a while since I read up on it, so I may have some of the details wrong. But it was an amazing clusterfart which could have been avoided or at least tamed sooner if states and the feds hadn't been so ham handed.
  • FreedMike Maybe this explains all the “Idiots wrecking exotic cars” YouTube videos.
  • FreedMike Good article! And I salute the author for not using the classic “Lucas - prince of darkness” trope, well earned as it may be. We all know the rap on BL cars, but on the flip side, they’re apparently pretty easy to work on (at least that’s the impression I’ve picked up). On the other hand, check the panel fits on the driver’s and passenger’s doors. Clearly, BL wasn’t much concerned with things like structural integrity when it chopped the roof off a car designed as a coupe.
  • Mongo312 Had an 89SE, 92SE and an 03SE all with stick. The 03 took almost 3 months to find because there were so few produced with a manual transmission and dealers didn't want to give them up. Ended up buying one from a dealership in San Antonio and having it shipped here to St Louis.