guru267 wrote:tkzee wrote:@ speculator ,i equally thot that the passat deal would impact their profits.Last yr was a tough year for auto dealers as most of them saw a decrease in sales due to recession.Motor industry is cyclical as somebody has pointed out.
As the economy peaks,it could be a turning point for the stock.
So why not buy C&G instead of CMC... It has got way more pocket friendly products that suit the EA market
@guru276
C&G has a reputation of paying odd cents even when they have made even shillings. With the new licensing rules on nissan matatus, the biggest gainers will be CMC and GM.
Add to it that the Passats will not be on the one year free service mileage. CMC charges a foot and arm for services but the government would not feel it as it comes from someone else pocket.
Farming is picking and demand for farming machinery is on the rise. CMC is in the sector.
Was it 30 billion Infrastructure bond, it went through and upgrading of roads will start earnestly next year with a good chunk of machinery coming from CMC.
Governors, Senators etc will be many in the country. The trend is that more 2011 model Passats will be purchased.
CMC is already preparing for the expected wind fall, just pass by their go down on Lusaka road, chat with the sales manager etc to get a feel of the facts on the ground.
Go overdrive in purchasing the goods when there's blood on the streets, expecially if the blood is your own