Youâre receiving this email as part of your subscription to Andrew Zatlinâs Moneyball Daily [Unsubscribe]( [Moneyball Economics] This is How to Make $5k in Profits Wednesday, October 19, 2022 You might not be looking for a new car⦠But you should definitely be looking for car-related investments. Today, Iâll explain why the auto industry is poised for profits⦠And show you exactly where those profits are hiding. [CLICK HERE TO LAUNCH VIDEO OR READ THE FULL TRANSCRIPT BELOW »»]( > ADVERTISEMENT < No. 1 Energy Play During Crisis The energy crisis doesn't look like it's going away anytime soon. But tech expert Adam O'Dell has found a little-known company that has developed new tech to access the largest energy source on Earth... a source that could produce 5X as much power as the largest oil field... in just one year. There's still time to get in early. [Click here for the full story.]( For a transcript of this video, see below. This transcript has been lightly edited for length and clarity. This is How to Make $5k in Profits During Covid, the car industry got slammed. Manufacturers couldnât get the parts they needed because of supply-chain problems. Thatâs why production crashed from seventeen million cars a year to just thirteen million. This sent demand â and car prices â sky-high. Now, once again, change is coming for this industry... But this time, we can aim to profit handsomely. The Current Landscape for Cars Prior to Covid, cars would sit on a dealerâs lot for about two months before selling. Today, theyâre gone in a few weeks. The fact is, cars are in high demand⦠and car dealers are the ones with all the power. In the past, theyâd pocket about $2,000 profit per sale. Now, theyâre pocketing $5,000 profit per sale! For a while, buyers didnât mind. After all, buyers could get a lot more for their trade-in. If they got an extra $5,000 for their old car, they didnât mind paying $3,000 more for the new one. But all that is about to change⦠Business is About to Flip As supply shortages evaporate, vehicle production will head back to that seventeen million mark. And the business of selling cars will shift. Dealers were making fewer overall sales, but earning higher profits for each one. Thatâll flip: now theyâll sell more cars, but will take home less profit for each one. With all this in mind, some investors seem eager to pick up the stocks of car manufacturers like Ford or General Motors. But Iâve got a far better idea⦠Look to the Suppliers Simply put, you should invest in the auto-parts suppliers that will reap the rewards of this industry shift. Think about it: Increased car production will mean an increase in demand for car components â everything from tires to transmissions to airbags. Demand for these parts will rise⦠and the price of component materials will fall as shortages ease. In fact, itâs already happening⦠During Covid, for example, Goodyear Tire (Nasdaq: GT) went from paying about twelve billion dollars for rubber and steel to sixteen billion dollars. That was a thirty-percent jump, coupled with a thirty-percent drop in production when demand for cars fell. But over the past year or so, the price of rubber has cratered almost forty percent. So now Goodyear is sitting pretty: Not only will it enjoy higher demand for its tires as auto production ramps up, but the costs to make its tires will be lower. Thatâs a surefire recipe for success. Bottom line: component makers are gearing up for major growth and profits. And now thatâs being reflected in their hiring⦠Hiring: Up and to the Right For example, hereâs hiring for Allison (NYSE: ALSN), a transmissions manufacturer: As you can see, itâs skyrocketed recently. Then thereâs hiring for parts supplier BorgWarner (NYSE: BWA), which is up, up, up: Friends, I canât emphasize this point enough: If a company is hiring, itâs forecasting growth â and itâs forecasting greater profits. And based on my data, auto component makers are ready to soar. In my opinion, one such company has the most potential. To see all the details, check out Moneyball Pro below. In the meantime, weâre in it to win it. Zatlin out. FOR MONEYBALL PRO READERS ONLY
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