And so it happens... Toyota #1

The 1Q results are in and after years perched on top of the automotive world, Detroit automaker GM was handily beaten by 90,000 units to rival Toyota. The results marked record results for both automakers, but was the first time Toyota outsold GM. Analysts expect similar results throughout the rest of the year as Toyota's finally achieves the dominance that seemed all but an eventuality. Should this occur, this will mark the first time in 76 years that GM was not the top automaker in the United States.

That being said, will Toyota be able to sustain its dominance? Even the mighty must fall and with Chinese upstarts, formidable South Korean players and the resurgence of American brands will Toyota be able to maintain its lead over the competition? As the Tokyo juggernaut rolls along, however, its stock (Toyota: NYSE - TM) seems to be a relative bargain at $125, down from a high near $140 mere months ago. As such, TM seems like a BUY and its dominance? Only time shall tell.

One Love,
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Coke vs. Pepsi... Who Cares?

The debate over Coca-Cola (NYSE: KO) and Pepsi (NYSE: PEP) seems to never end. Just today, some co-workers of mine debated over the qualities of each and which was the superior cola beverage. A professed Pepsi drinker, I can say I do have a preference. However, its crazy to me when people launch tirades over which is the better beverage. To me, bubbly is bubbly. If Pepsi is available, I'll go for that. If it isn't, I won't cry about it I'll simply just go with a Coke. Sometimes if I'm feeling adventurous I'll just go for Coke to switch things up. Call me crazy.

Now there's taste tests and all that jazz on the drink people prefer. Now if you like Coke or Pepsi, so be it. But that doesn't mean you should go biblical on others and force your beverage of choice upon them. Yes they do taste different. I'm no expert, but I'd say Coke is a bit more bubbly and Pepsi is a bit more sweet. I don't know if anyone else notices this, but I'd definitely say that Coke/Pepsi in a can tastes different than Coke/Pepsi in a bottle and still more different than Coke/Pepsi from the tap. It also depends what type of glass you put it in (plastic/glass/etc.). I'm sure at restaurants you order one thing, but they give you whatever they have there. Also, I'm sure most people go with "I'll have a coke (not specifying brand)" rather than sounding like a tool and saying "Make mine a Pepsi." Well at least thats what I say. The restaurant could give me some third party brand (RC Cola anyone?) and I probably wouldn't know the difference. Truth is, fountain sodas are way too inconsistent on their syrup to whatever ratio and it never tastes the same.

Alas, no matter what your cola of choice is, I say if you feel so strongly about it you end up looking like a silly fool. Yes, thats right silly fool. I'm a silly fool for wasting the time to write this entry. Anyway, by being so brand-loyal you've fallen for their multi-million dollar marketing campaigns and have become enslaved to the corporation. Call me frugal/cheap or what you will, but if I'm in the grocery store I'd go with whatever costs less because at the end of the day, are those seconds you have the bubbly dancing on your tongue worth that extra dough just because its from a particular brand? To me it ain't.

So as you chug down your cola (you actually shouldn't it's bad for your teeth... wash it down with water after you're done or go brush your teeth) in the end it doesn't matter. There's plenty of room in this world for both of these outfits. As seen in the charts below, both Coca-Cola and Pepsi have done quite well for themselves. As poor chaps like me continue to drink the stuff even with all the health warnings (not unlike tobacco...), these stocks seem to have a solid customer base that keeps refreshing itself. So maybe you should just invest in these stocks instead of drinking them. This way you can stay brand loyal by choosing your company and have a brighter smile by avoiding the stains these colas bring.

The Coca-Cola Company (KO)

Pepsico (PEP)

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Toyota to become #1 Automaker

VS

After 75 years atop of the automotive world, GM (NYSE: GM) is poised to lose its coveted crown to Toyota (NYSE:TM) in 2007. While the de-throning of GM has been expected for a while, this is finally becoming a reality as Toyota continues to open factories across the globe, to increase its world-wide presence, while GM continues shutting down factories and laying off workers solidifying its descent. I for one would rather buy a Toyota's Scion/Toyota/Lexus lineup rather than spend a simliar amount on GM's Saturn/GMC/Lincoln which have less bang for the buck and considerable quality nightmares.

A quick look at the stock prices of both these companies shows the picture. On the top, its clear that Toyota's value has well surpassed GM for a while, with its value over 4X that of GM. Perhaps one the biggest events that insured GM's death knell was news in November that major GM Shareholder Kirk Kerkorian would be selling his shares. Previously, he had ramped up in the stock building his holdings to 56 million shares. Thanksgiving week, he sold off 14 million shares lowering his stake to 42 million shares and showing his lack of trust in the company.

Toyota (TM)


General Motors (GM)

Who knows what 2007 will hold for this struggle of power. As customers demand quality and innovation, Toyota can stay on top of its game by continuing to offer the quality cars that have topped Consumer Reports most reliable cars list for years. While I forsee a quick rebound by GM as highly unlikely, Toyota may not have smooth sailing after reaching the top. Time will tell if its ultra aggressive expansion will cause havoc on quality controls as it spreads production around the globe. It may run into some of the same problems faced by GM and for the sake of brevity, instead of giving TM a STRONG BUY rating, I place a watchful BUY on Toyota's stock. As for GM, with no bright prospects in sight I keep a SELL rating GM's stock.

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The Big Bell "Value" Menu

For all those Taco Bell lovers, buyer beware. Apparently, part of the "value" you get with your Taco Bell meals is a side of E. coli. If you haven't heard already, over the weekend there was a massive E. coli outbreak in New Jersey, Long Island and Pennsylvania all linking to patron eating at Taco Bell restaurants. Over 65 cases were reported, with many suffereing severe nausea, vomiting and other niceities associated with E. coli. One would think that it might be somehow linked to the Grade F meat or whatever they use in their Tacos, but apparently the root of the problem was... green onions. How you like them apples?

So what does this all mean? Well as with all fast food, you can never be sure of how it was packaged, shipped, and prepared. But then again even with some of the "fresh" food we buy, you can never be sure. Either way, I've never been much of a Taco Bell fan and this little tidbit isn't making me become one any sooner. More importantly, those in the market may want to watch Yum! Brands, Inc. (NYSE: Yum), owner of Taco Bell and various other fast food establishments like Pizza Hut. As seen in the chart below, the stock has suffered a blip dropping over $1 in the past few days. While this may not be cause for alarm, you may want to keep an eye on this to see how unfolding events may draw scrutiny on the company, possibly lawsuits and the like, which could drag the stock down in the gutter. Further, customers turned off by this news can vote with their dollars and stop "thinking outside the bun" and lead to a decline in profits.

For the faithful out there, however, Taco Bell goes on strong. A recent article in the NY Times, "Some Stomachs Deliberate and Conclude: I Want Tacos" shows people are still returning to the restaurant regardless of the bad press. Well, what can I say, they're much braver souls than I...

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