Wyatt Research Week in Review: Sept. 20-26

Cars drove many of the big news items this week, with both Apple (NASDAQ: AAPL) and Volkswagen (OTC: VLKAY) making front page headlines with auto-related items of sharp distinction.
On Monday, it was reported by The Wall Street Journal that Apple has designated its top-secret electric car project – code-named Titan – as a “committed project.” Citing “people familiar with the matter,” the Journal reported that Apple is targeting 2019 as a ship date for its first foray into the auto business.
Besides the obvious significance that the long-rumored project has unofficially been confirmed, perhaps the most interesting nugget of information gleaned from the Journal’s reporting is that the first Apple car won’t be fully autonomous.
While a self-driving car is part of Apple’s long-term plans – according to those anonymous sources in the know – the initial iteration of the vehicle (should it make it to the 2019 finish line) would more likely be the ultimate mobile machine, designed to seamlessly interact with Apple’s growing stable of consumer tech devices.

Volkswagen’s Emissions Admission

Then there was Volkswagen’s week, which resembled a high-speed crash on the Autobahn.
The German auto champion, which surpassed Toyota Motor Corp. (NYSE: TM) as the world’s largest automaker in the first half of 2015, said on Tuesday that it would absorb a 6.5 billion euro charge after admitting that it used software designed to fool emissions tests on certain VW and Audi diesel cars.
On Wednesday, the other shoe fell when Volkswagen CEO Martin Winterkorn ignominiously resigned.
Volkswagen shares – both its American depository receipts traded over the counter and its primary stock listing on the Frankfurt Stock Exchange – understandably plummeted on the news.
But as with any sell-off on unsavory news, the questions for existing shareholders or prospective buyers are: How long will it take for the scandal to fade from the public eye; and has the long-term outlook for the company changed?
Wyatt Research analyst Steve Mauzy offered an intriguing take in Friday’s issue of Income & Prosperity, which I highly recommend checking out.
Here are a few more of my favorite Wyatt Investment Research articles from the week:
Top 5 Dividend Achievers – The best bet for income seekers might be stocks that aren’t necessarily high yielding, but which have a history of upping their dividends. And there’s a set of 19 companies that have been upping their annual dividends for 50 years or more – five of which are the cream of the crop.
Will the ‘Megabrew’ Beer Merger Fall Flat? – In mid-September, Anheuser-Busch InBev (NYSE: BUD) began an informal approach to take over its closest rival, SABMiller PLC (OTC: SBMRY). Industry observers are already calling the proposed $250 billion merged company “Megabrew.” But even if the proposed beer merger is consummated successfully, one threat still looms over the entire industry.
How to Overcome the Federal Reserve’s Income-Destroying Policies – Sept. 17 came and went, and nothing changed. Yet another Federal Reserve meeting, and the federal funds rate target range remains at 0% to 0.25%. To capture meaningful income – income that generates a real return after inflation and taxes – investors must continue to reach out on the risk curve. And Steve Mauzy has a few suggestions for high-yield investments that he believes are priced for exceptional long-term returns.
With Disney Stock Down 20%, Is It Time to Buy? – Walt Disney Co. (NYSE: DIS) stock is now down approximately 20% from its 52-week high. The problem stems from comments Disney CEO Bob Iger made on the company’s last quarterly conference call in August about one of the company’s flagship media properties, sports network ESPN. Are investors that are selling Disney just on fears over ESPN making a big mistake?
Income for Life Trading: Answering Your Questions – During a live event on Wednesday, Andy Crowder and Ian Wyatt revealed three simple strategies for collecting extra income as part of their “Income for Life Plan.” Even if you missed it, you can still learn about Andy’s trading system by clicking here now.
A Quality Biotech Stock Is Available on the Cheap – Biotech stocks aren’t cheap. Indeed, a biotech bubble might be brewing. But one underrated biotech stock with a forward price-earnings ratio under 14 is an outright bargain. And its planned cost cutting and manufacturing overhauls should further drive cash flow growth, supporting its plan to return 60% of its net income to shareholders through 2018.
Philip Morris Dividend Hike Flames Out – Hit by the stronger U.S. dollar and weakening cigarette sales, Philip Morris International (NYSE: PM) only raised its dividend by 2% last week. But for investors unafraid to dip their toe in “sin stocks,” there’s a better tobacco option out there.
Oil Prices: Stuck Now, But What About 2016? – Persian Gulf members of the Organization of the Oil Exporting Countries (OPEC) see oil prices trapped in the $40 to $50 per barrel range for the rest of 2015. The blame can be placed on the glut of oil brought on by Saudi Arabia’s market share war and weakened demand from China, the world’s largest importer of oil. But what about next year? Will oil prices bounce back in 2016?
Have a great weekend!