BYD Buffett called `dynamic # 39; The automaker, Affirms Investment: Video
Buffett Chinese electric car maker linen actions.
Warren Buffett with an electric car BYD, the Chinese battery and car maker it owns a major stake.
The shares of BYD, the Chinese battery and electric car maker in which Warren Buffett is a major investor, tumbled in Hong Kong trading Wednesday after an analyst slashed its China business target price for the stock to practically nothing.
BYDDF BYD shares fell nearly 10 in Hong Kong, although the US listed shares were flat in early trading, but both stocks have lost more than half their value since hitting a high 52 weeks in February.
CLSA, a Hong Kong investment company that had a sell recommendation on BYD shares issued Wednesday critical report cut its price target to 12 months at 41 cents in Hong Kong dollars, which is 97 below current levels.
We now believe that the company will likely deteriorate further due to declining business in mobile phone components, rechargeable batteries and new energy, CLSA said, citing the various sectors of society spoke of BYD its electric vehicle EV and plug-in hybrid cars for years, but they only sell electric models in small volumes in Shenzhen This is a clear signal that even the company does not think its EV technology is ready for widespread use BYD range also sells traditional gasoline powered cars in addition to the high -profile electric models.
Berkshire Hathaway BRKA that Buffett short, bought a 9 September stake in the company to 230 million in September 2008 At the end of 2010 Contest Berkshire has a value of 1 2 billion, according to documents filed by the company but after steady decline its US market price, the stake is now worth about 416 million.
Buffett's investment has attracted worldwide attention for BYD electric vehicles and its activities but that business remained difficult in which to make money Toyota Motor TM announced earlier this week that he shoots his plans for a model sub-compact car all-electric, that plug-in hybrid vehicle gasoline powered or battery power are thus abetter to serve this market segment.
CNNMoney New York, first published September 26, 2012 October 14 am ET.
Shares of Chinese electric car maker BYD Buffett tumble in September, shares Buffett, Chinese.