Porsche SE offers the best risk/reward to get long in five years as Volkswagen pursues what it calls its biggest business transformation in 87 years, reportedly cutting another 50,000 jobs for 100,000 in total while slimming its lineup. @The_Analyst_Lab counters that the 50,000 is only a target from the plan's analysis, not agreed cuts. Still, Volkswagen has the balance sheet to pull it off, and supervisory board approval was a big hurdle to clear. x.com  x.com 

European equities are a lost cause until new leadership arrives, as stories of entrepreneurs fleeing German bureaucracy show. Saving Europe probably means breaking it first, and the time to buy is in the wreckage. x.com 

Volkswagen's guidance cut does not change its underlying earnings power. The reduced full-year operating return forecast, now up to 1% from 4-5.5%, reflects non-cash items and one-time restructuring costs; without them the operating margin is the same 4% as expected. x.com 

Car companies make great products but terrible businesses because competition kills margins. A great car keeps a customer away for two decades and a mediocre one sends him to a rival, so there is no recurring revenue. The industry is capital intensive, cyclical, union-heavy and lacks pricing power, with a hundred competitors cutting prices, adding capacity and buying share. That applies to BMW, Mercedes-Benz, Tesla, BYD, Toyota and Volkswagen alike. x.com