By Robert Lenzner, Forbes Staff My jaw dropped and I got wide-eyed looking at a chart showing automobile production this year. I simply didn’t realize that automobile plants in North America are operating at full capacity (I mean near 100% in some cases) and are on schedule to sell the 16 million cars they will produce this year. The automobile industry is booming almost more vibrantly than residential housing, and rewarding investors with solid gains this year, while still selling at low forward multiples of earnings. Ford Motor, with the robust Allan Mulally as CEO, has seen its stock rise 25%, more than the market average and still be selling at 8 times forward earnings expectations, when the broad market sells at 16 times current earnings. Warren Buffet’s Berkshire Hathaway picked up 25 million shares of GM in the first quarter on the strength of its making 15% return on equity. …read more
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