Free Annual Reports
Cash For ... Refrigerators?
The summer has come to an end and so has the controversial "Cash for Clunkers" program. Say what you will about the Car Allowance Rebate System and the issues that surrounded it, but there's no doubting that for the automobile companies, the program was a welcome stimulus. So how do you follow up such a controversial and divisive incentive program?
Cash for refrigerators.
No, it's not a joke. Beginning this fall, consumers will be offered rebates of up to $200 when purchasing high-efficiency household appliances. The program, which many have dubbed "Cash for Refrigerators", is part of the larger economic stimulus bill that was passed earlier this year.
IN PICTURES: 9 Ways To Use A Tax Refund
Putting the Recession on Ice
Although Cash for Clunkers was considered a logistical nightmare, the shot in the arm it gave the auto sector cannot be refuted. Ford (NYSE:F) saw its share price rise 25% from the inception of the program, fueled by sales of its newly redesigned Ford Focus and Escape. Toyota (NYSE:TM) enjoyed a bump of 15% over the same period thanks to its Corolla being the No.1 selling vehicle in the program. So it can be expected that this new incentive program should provide some relief to the beaten-down stocks in the home appliance industry.
Global conglomerate General Electric (NYSE:GE) should see a boost in retail appliance sales, since the company had a strong market share in this industry. The stock also comes with a tidy 2.8% yield, which could be icing on the cake if GE sees some significant numbers as a result of this latest rebate program. Another firm that could really use the business is Whirlpool (NYSE:WHR). The appliance manufacturer is still down over 30% from its 52-week high, despite a momentous 210% run-up since early March. Shares have already begun to move in the hope that the rebate program will help Whirlpool in particular, up over 15% in the last 10 days alone.
The last company that stands to be a potential benefactor of the refrigerator rebate program is Electrolux (OTC:ELUXY). The Swedish appliance giant has already recovered from the global recession as far as share price is concerned and is hoping to make a larger splash in theU.S.
With more than $300 million earmarked for the "Cash for Refrigerators" program, there is money up for grabs in the household appliance industry. The Big 3 in this market should all see a nice bump in their share price and, if history is any indication, these cyclicals could fare very well in the new bull market (To learn more, see The Ups And Downs Of Investing In Cyclical Stocks.)
Cash for refrigerators.
No, it's not a joke. Beginning this fall, consumers will be offered rebates of up to $200 when purchasing high-efficiency household appliances. The program, which many have dubbed "Cash for Refrigerators", is part of the larger economic stimulus bill that was passed earlier this year.
IN PICTURES: 9 Ways To Use A Tax Refund
Although Cash for Clunkers was considered a logistical nightmare, the shot in the arm it gave the auto sector cannot be refuted. Ford (NYSE:F) saw its share price rise 25% from the inception of the program, fueled by sales of its newly redesigned Ford Focus and Escape. Toyota (NYSE:TM) enjoyed a bump of 15% over the same period thanks to its Corolla being the No.1 selling vehicle in the program. So it can be expected that this new incentive program should provide some relief to the beaten-down stocks in the home appliance industry.
Global conglomerate General Electric (NYSE:GE) should see a boost in retail appliance sales, since the company had a strong market share in this industry. The stock also comes with a tidy 2.8% yield, which could be icing on the cake if GE sees some significant numbers as a result of this latest rebate program. Another firm that could really use the business is Whirlpool (NYSE:WHR). The appliance manufacturer is still down over 30% from its 52-week high, despite a momentous 210% run-up since early March. Shares have already begun to move in the hope that the rebate program will help Whirlpool in particular, up over 15% in the last 10 days alone.
The last company that stands to be a potential benefactor of the refrigerator rebate program is Electrolux (OTC:ELUXY). The Swedish appliance giant has already recovered from the global recession as far as share price is concerned and is hoping to make a larger splash in the
With more than $300 million earmarked for the "Cash for Refrigerators" program, there is money up for grabs in the household appliance industry. The Big 3 in this market should all see a nice bump in their share price and, if history is any indication, these cyclicals could fare very well in the new bull market (To learn more, see The Ups And Downs Of Investing In Cyclical Stocks.)
Free Annual Reports
