Stock Report for Company Chrysler
Stock Report for Company Chrysler
Name:
Institution:
Course:
Tutor:
Date:
Table of Contents TOC o “1-3” h z u HYPERLINK l “_Toc289531674” Table of Contents PAGEREF _Toc289531674 h 2
HYPERLINK l “_Toc289531675” Stock Report for Company Chrysler PAGEREF _Toc289531675 h 3
HYPERLINK l “_Toc289531676” Introduction PAGEREF _Toc289531676 h 3
HYPERLINK l “_Toc289531677” Purpose PAGEREF _Toc289531677 h 4
HYPERLINK l “_Toc289531678” Analysis PAGEREF _Toc289531678 h 4
HYPERLINK l “_Toc289531679” The Impact of the Internet on Financial Markets PAGEREF _Toc289531679 h 6
HYPERLINK l “_Toc289531680” Conclusion PAGEREF _Toc289531680 h 7
HYPERLINK l “_Toc289531681” References PAGEREF _Toc289531681 h 8
Stock Report for Company ChryslerIntroductionIn the current turbulent, complex ad dynamic financial environment, investors need to base their decisions on credible thought. As the financial environment becomes more volatile, the respective investors need to be conversant with the nature and dynamics of the markets in order to make sound investments. Knowledge of financial markets is also important in planning. This is applicable at both the individual as well as professional level. In particular, individuals that are well versed with the functioning of financial markets tend to make informed decisions that are based on the implications of changes in the respective markets. With this knowledge, they can be able to predict the financial trends and determine when to make investments and vice versa. This is particularly important in the stock market in which minimal changes have diverse impacts on the holistic wellbeing of the particular investment. At a professional level, knowledge of the respective markets is imperatively important because it encourages optimal functioning.
From a psychological point of view, individuals who are knowledgeable about the financial trends tend to make wise decisions with regard to their professional choices. In most cases, such individuals tend to venture in fields that are more rewarding as well as financial stable. The inherent stability plays an instrumental role in enhancing their functioning as well as vigilant. Certainly, knowledge in finance has multiple implications on the individual as well as professional wellbeing of populations. It is against this background that this paper provides an in depth review of the stock of Chrysler Company. To enhance a harmonic consideration, it begins by providing a brief history of the stock of this company. Then, it proceeds to analyzing the current reports regarding the performance of the company. Finally, it provides useful insights regarding whether the stock investment in the company is viable or not. Also, it explores the impact of the internet on the financial markets.
PurposeThe purpose of this paper is to review the stock report of Chrysler Company. Stock reports underscore the financial functioning of the company. To a great extent, they also determine the stability of the company. By highlighting the financial risks that are associated with the Chrysler Company, this study aims at providing vital information to the investors about the implications of their investment decisions in this company. The analysis of various perceptions about the stock of this company and its overall financial performance further provides deeper insights in to the actual financial environment of Chrysler and how viable it is for investors. Being one of the largest auto companies in the nation, its performance has attracted response from various facets of the society. The analysis of relative responses aims at providing the audience with a more objective viewpoint of the stock of this company.
AnalysisName Symbol NYSE Industry Dividend rate P/E Price
Chrysler Automobile 2.63 8.48 2000
The stock of Chrysler has undergone various changes in the recent past. This is an American automobile manufacturing company whose head quarters are located in Detroit. Since its inception up to 2007, the company as well as its subsidiaries were a segment of the DaimlerChrysler AG; a German company that is currently referred to as Daimler AG. Before 1998, the company participated actively on in the New York Stock Exchange and traded under the symbol C. The ticker symbol for Daimler AG on the other hand was DCX. However, in 2007, DaimlerChrysler sold a significant 80.1% of the Chrysler Holding LLC to another company named Cerebus Capital Management. This had far reaching implications on the Chrysler Company that was left with only 19.9% of the shares. As a result, only 19,9% of the Chrysler LLC is available for investment. The investment in this regard can only be done indirectly under the symbol DAI on the NYSE. In 2009, Chrysler filed for bankruptcy protection. It then partnered with Fiat, an Italian automaker. Under this private dealership, the company has experienced various challenges.
The 2010 financial reports however indicate that it is on track. According to Reuters (2011), the company made an operating profit of close to $143 million by the end of the first quarter of the respective financial year. The net revenue of the company also improved slightly to $9,687. Likewise, the US market share of the company improved from 8.1% to 9.1%. In Canada, this was higher as it improved to 13.7% down from 11.6%. Arguably, these financial trends indicate that the company is on track and is likely to recover in three years in line with its financial and economic goals and objectives. According to Ramsey (2009), this confirms that the targets that the company has set in this respect are achievable. Reportedly, more investment is being generated to cater or the issues pertaining to brand repositioning and product portfolio.
Also, emergent researches indicate that the company is looking forward to launching other new products by the end of this year. The inherent positive trend indicates that the company is likely to attain stability as stipulated by its business and organizational goals. Other measures that the company has undertaken to ensure that it meets its financial goals include improving trade margins, enforcing rigorous cost discipline and enhancing operational efficiencies (Reuters, 2008). In general, Krisher (2011) ascertains that the company is experiencing positive growth and it is likely to recover in the near future. In this regard, it is safe for investors to make investments accordingly.
Company reports indicate that the profit that the company attained in the recent was attributed to selling cars. The company’s investments as well as repositioning campaigns have also been instrumental in improving customer traffic. Global trends ascertained that the company sales assumed an upward trend. Notably, its introduction of the Cherokee Brand in the market has also played an important role in boosting the market sales. Compared to the 2009 performance, the company has exhibited an upward trend that has beneficial effects on its wellbeing. The current positive performance indicates that the company is likely to attain stability in the near future. Due to the fact that it is currently under private dealership, AFP (2009) indicates that most of its financial data is unavailable to the general public. This can also be used to explain why its shares can not be directly bought on the New York Stock Exchange. Nonetheless, the inherent positive trend is promising.
The Impact of the Internet on Financial Markets
Just like other technological advancements, the internet has had diverse impacts on the financial markets. To begin with, it has played a leading role in facilitating the flow of information. Financial analysts in this regard have been able to exchange information in an effective and timely manner. This is attributable to the characteristic software interfaces that are vital for facilitating dissemination, exchange and evaluation of important financial information. The internet has also played a major role in facilitating interaction of economic agents. In particular, the exchange physical commodities and financial instruments have been made possible. Further, the internet has been important in enhancing efficiency in various operations by providing sophisticated models and strategies of analyzing financials. Finally, the internet has been useful for enhancing and promoting the direct access of various economic agents to the markets. This is currently carried out across national borders, state and local jurisdictions.
ConclusionIn sum, understanding of the financial market is vitally important for effective functioning of an individual as well as the society. Financial knowledge enables an individual to make informed decisions regarding economic investments. Its ability to identify relative risks enables investors to make sound decisions. The evaluation of the Chrysler Stock indicates that this is currently unavailable to the public. However, financial trends indicate that the company is on track and is likely to attain stability in the near future. Its increased sales are attributable to various factors including introduction of new products. Notably, the company is likely to achieve its financial goals in the near future. This implies that long term investment in the stock of this company is likely to be more rewarding than short term investment. The internet has had tremendous and profound implications on the financial markets. Besides enhancing efficiency, it has enhanced flow of information amongst different analysts and promoted direct access of the economic agents to the markets.
ReferencesAFP (2009). Deal with Fiat highlights Chrysler’s turbulent history. Retrieved 2nd April, 2011 from: HYPERLINK “http://www.google.com/hostednews/afp/article/ALeqM5j-7TxF3qENInMPyOSaU1ePSHHyfw” http://www.google.com/hostednews/afp/article/ALeqM5j-7TxF3qENInMPyOSaU1ePSHHyfw
Krisher, T. (2011). Chrysler’s CEO could get stock worth $2.9M. Retrieved 2nd April, 2011 from: HYPERLINK “http://finance.yahoo.com/news/Chryslers-CEO-could-get-stock-apf-4044278649.html?x=0&.v=4” http://finance.yahoo.com/news/Chryslers-CEO-could-get-stock-apf-4044278649.html?x=0&.v=4
Ramsey, M. (2009). Fiat said to buy Chrysler assets today to form new automaker. Retrieved 2nd April, 2011 from: HYPERLINK “http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aAB9jCmPBUQU” http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aAB9jCmPBUQU
Reuters (2008). Timeline: Key dates in Chrysler’s history. Retrieved 2nd April, 2011 from: HYPERLINK “http://uk.reuters.com/article/2008/10/13/us-chrysler-chronology-idUKTRE49C7UP20081013” http://uk.reuters.com/article/2008/10/13/us-chrysler-chronology-idUKTRE49C7UP20081013
Reuters. (2011). UAW to Own 55 Percent of Chrysler Stock: Report. Retrieved 2nd April 2011 from: http://www.reuters.com/article/2009/04/28/us-chrysler-sb-idUSTRE53R08T20090428
