Get the Latest Investment Ideas Delivered Straight to Your Inbox.

TICKERS: DDAIF

Daimler Shares Rise 25% After CEO Reports Car Maker Requires No State Aid

Source:

Shares of Daimler AG traded higher after the company's CEO was quoted in the German newspaper Handelsblatt saying that the auto manufacturer presently does not have any need for state aid.

Auto, truck and commercial vehicle maker Daimler AG's (DDAIF:OTC) Chief Executive Officer Ola Kaellenius, yesterday stated in an article in the German newspaper Handelsblatt that "the company currently has sufficient funding and sees no need to apply for state aid, despite halting production at its major plants in Europe to contain the coronavirus."

Kaellenius reportedly told the paper that "Daimler currently has no need for state aid. Generally speaking, the industry had a very good order intake before the crisis." When asked directly whether the company would help support its suppliers that are in trouble, CEO Kaellenius remarked, "We are in permanent discussions with our suppliers and consult them. Until now there has not been a case where liquidity was an issue."

Kaellenius advised that the company is in the process of shutting production down at its Tuscaloosa, Ala., plant and has reopened its factory in China and is seeing demand for cars recovering in that country.

Daimler AG is an automotive engineering and manufacturing company headquartered in Stuttgart, Germany. The company develops, produces and distributes cars, trucks and vans in Germany, and the oversees the management of the Daimler Group. Its well known business segments include Mercedes-Benz Cars, Daimler Trucks, Mercedes-Benz Vans, Daimler Buses and worldwide financing arm Daimler Financial Services.

Daimler has a market capitalization of around $33.5 billion with approximately 1.07 billion shares outstanding. DDAIF shares opened 16% higher today at $28.71 (+$3.96, +16.00%) over yesterday's $24.75 closing price. The stock has traded today between $28.22 and $31.67 per share and is currently trading at $30.82 (+$6.07, +24.51%).

[NLINSERT]

Disclosure:
1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.




Learn More about Which Online Broker is Right for You?

Want to read more about Special Situations investment ideas?
Get Our Streetwise Reports Newsletter Free and be the first to know!

A valid email address is required to subscribe