David Silver Urges Traders To Invest In Resurgent Car-Parts Business

In an article on MarketWatch, David Silver, an auto analyst at WStreet.com said “Auto parts suppliers have had a great run since March of last year, but the fact remains, there is room to move higher. The industry is only at about 11.5 million vehicles [per year] now, and I think we get to 14 million by 2012." David is expecting a potential boost from consolidation in the sector. An investor can benefit from the car sector by buying a fund devoted to the sector. Such a fund could be Fidelity Select Automotive Fund FSAVX that has climbed 64% over the past year. Big car makers like Toyota, Honda Motor Co HMC and Daimler AG DAI heavily weigh down the fund. The Akron, Ohio-based tire giant Goodyear Tire & Rubber Company GT is refurbishing its business, cutting jobs and slashing costs, to fight the recession. The company has returned on the growth track by posting robust quarterly results. At 10:16 am, GT was trading at $13.50, up 2.66%. Rival Cooper Tire & Rubber Company CTB is another car stock worth considering. However, CTB has almost doubled in the past year and it doesn't have the manufacturer customers that GT does. CTB was up 1.03%, to $22.09 by 10:21 am. In the metal category, Johnson Controls JCI is a popular analyst choice. The company manufactures car batteries, including the lithium ion kind used in hybrid vehicles, car seats and heating and ventilation systems. JCI closed at $32.13 yesterday. More Analyst Color here.