Timothy Seymour
Founder & CIO at Seymour Asset Management
Member since: Mar '21 · 94 Opinions
Rating
Big Win
Win
Neutral
Loss
Big Loss
Stock Opinions by Timothy Seymour
COMMENT
The CEO stunned the street by announcing major costs and inefficiencies
It will take CEO Farley a while to turn this around. Cost issues are nothing new. They cut jobs in Europe and will streamline production there to operate more like the U.S. or South American operations. Ford has been trading at a discount to GM because of this. Ford, though, has outperformed GM a lot because their EV story is very exciting.
Automotive
BUY
As a 5-year hold Yes, because it's a global leader in ride shares. Its compound annual growth rate is probably 25% over the next 5 years. It's doesn't matter if it's down 80% from its highs. Lyft is well-positioned for the future. They're freezing hiring (though still want drivers) for the rest of the year. This doesn't change demand for rides. He added to his holdings today. We've started to see more drivers and rates declining.
0
COMMENT
The U.S. 10-year yield has fallen from 3.45% to 2.57%. The curve gets more inverted by the day; history indicates a recession, bot how severe will it be? There was weaker data out of China and the ISM today. We need to see more U.S. economic weakness for the Fed to pause--which he doesn't expect nor want.
DON'T BUY
Look at its underperformance, down almost 5% today as stocks were up. Semis have been underperforming the S&P for the last 20 days by roughly 13%. It's in stark contrast to the bond rally. An ugly day. It may be okay for interest-rate sensitive tech stocks to rally today, like tech, but the move in semis is downright scary, which this reflects the epicentre of the economy.
E.T.F.'s
Advertising