David Garrity
David Garrity
companies prices
These companies have been squeezing suppliers on prices for years.
given magnitude product seen strong terms
The thing to look at here in terms of GM, given the magnitude of this product changeover, is to see how well the new company, in terms of those products, is doing. And there, we've seen a very strong surprise.
certainly information
They are certainly demonstrating a hyper-sensitivity to what information they do disclose.
half pressure result sales second surprised
I would not be surprised to see sales in the second half of 1996 and sales in the first half of 1997 to be under pressure as a result of this finding.
becoming companies compliance environment operating pool volumes
In an environment where operating volumes are down and regulatory compliance is becoming more strict, it doesn't make sense for two companies to pool resources.
arrows ask die might question true
I have to give them credit. They are pioneers but are they leaders? And one might want to ask the question that isn't it true that pioneers die with arrows in their backs?
amazon becomes business expensive investing investors order tomorrow wait
Investing in their business in order to put in place an infrastructure of the Amazon of tomorrow is becoming, increasingly, an expensive proposition. And it becomes painful, if you will, for investors to wait for that to happen.
argue attractive auto change developing estimates ford general gm include management outside owning percent positive price realized research sector serve shares stock stocks value
In my view, shares of Ford would probably become more attractive if it got down to say $22, $23 a share. Although, I would argue that as long as these investigations are continuing, they'll probably serve to put a lid on the stock price performance. Other stocks in the auto sector we are more positive on include General Motors ( GM : Research , Estimates ). Also at GM, you've got a change in management -- you've got a significant outside shareholder developing in Carl Icahn, owning 30 percent in GM. There's just a lot of value to be realized in the group.
argue both certainly demand luxury successful utility vehicles
Certainly you can argue they have been successful on both fronts. And the demand for luxury sport utility vehicles is increasing.
argue company management path private public run similar themselves
I don't think they are going to split. Management has indicated that while they are a public company, they would like to run themselves as if they were a private company and you could argue that's a similar path as Berkshire.
cultural microsoft quite standpoint thinking
I do think from a cultural standpoint that Microsoft is not yet quite thinking in the way that they need to competitively.
benefit coming companies cost creating economy focus goods happen lower services themselves
It's not only the companies themselves that benefit from lower costs. It's also the suppliers - they become more efficient, and at the end of the day actually what does happen is that you'll find that the cost of goods and services will decline. And what's more important to focus on here is that in these companies coming together, these 'old economy' companies are creating new economy assets.
affect market plans sufficient
They have put in place contingency plans for the year. They have sufficient inventories to not have it affect their market share.
basically basis fairly flat high last looking sales staying versus year
For a full-year basis we're looking at sales basically being flat this year versus where they were last year. But we're still staying at a fairly high rate.