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  • Writer's pictureMike V.

Weekend Reading

Reuters: Lyft Investors Sue Over Slump, Claiming IPO Was Overhyped

Lyft Inc. was sued by investors who claim Wall Street overstated its market position when it went public last month, leading to a dramatic plunge in its stock price. Since going public March 28, Lyft has declined to $59.51. That compares with the offering price of $72. The investors claim exaggerating in prospectus when it said its U.S. market share was 39%. In both suits, the plaintiffs also dinged the company for failing to tell investors that it was about to recall more than a 1,000 of the bikes in its ride-share program.

The Bank of Japan Is Now A Top-10 Shareholder In 50% Of All Japanese Companies

Japan's central bank is quietly nationalizing its entire market. Japan's central bank owned a stunning 75% of all Japanese ETFs as the central bank keeps buying stocks under its ultraloose monetary policy. As of March 2018, the Japanese central bank has also become a major shareholder in nearly 40% of listed companies. According to Nikkei calculations, the bank was one of the top 10 shareholders in 1,446 listed companies out of 3,735. In other words, the BOJ has gone from being a Top 10 holder in 40% Japanese stocks last March, to 50% just one year later. This will end well.

Reuters: Mahindra signs deal with Ford Motor to make midsize SUVs in India

Automaker Mahindra and Mahindra Ltd signed a deal with Ford Motor Co’s Indian unit to jointly develop midsize sports utility vehicles in India, the company said on Thursday. Ford and affiliate companies will invest $97.97 million for the development of the vehicles over a period of 10 years, Mahindra said in a statement.

Chinese Car Sales Down In March As Slump Continues

March retail sales of sedans, SUVs, minivans and multipurpose vehicles dropped 12% to 1.78 million units, according to the China Passenger Car Association. This is after an 18.5% drop in February and a 4% drop in January. Cars were the only consumer product category in China that shrank the first two months of 2019. There are only 200 million private vehicles in China, leaving huge room for growth. Policies should be put in place to spur vehicle consumption in 2019. Global automakers like Toyota and Ford are left with few places to go for growth in sales. Markets in Europe and North America continue to slow alongside of China as the availability of car sharing services makes buying less necessary. Japan is also slowing down, while gains in smaller markets are unable to offset growth in larger markets. Ford reported a 54% sales fall in China last year and said last week that it’s introducing more than 30 vehicles targeted specifically for Chinese consumers over the next three years to help it hone its focus on the market

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