How to Make a Profit on BMW Stock

Posted by OliverPearson 0

How to Make a Profit on BMW Stock

BMW AG (Bayerische Motoren Werke AG) is a large concern producing cars, motorcycles, bicycles, and engines. The company is headquartered in Munich, Germany. Today, the concern owns the world premium class brands Mini  and Rolls-Royce Motor Cars.

The slogan of the company is “Designed for Driving Pleasure”

Although BMW was founded in 1913, officially, it was incorporated on July 20, 1917 by its founder Karl Friedrich  Rapp. At first, the company specializedin manufacturing of aircraft engines. At that time, BMW was situated near its partner Flugmaschinenfabrik , the aircraft manufacturer.

Although the concern’s production facilities are mainly concentrated in Germany, BMW also has plants in Russia, China, Thailand, the United States, the Republic of South Africa, Malaysia, Egypt, and Vietnam.  The company sells over million cars a year.

BMW Stock

BMWAs of May 2013, BMW’s market capitalization makes up €45 billion. Its annual profit amounts to about €5 billion.

 BMW stock is listed on the German Stock Exchange XETRA. Besides, BMW stock is traded on the stock exchanges as follows

 

BAMXF:US — OTC US
BMW:GR — Xetra
BMW3:GR — Xetra
BYMOF:US — OTC US
BMW:IM — BrsaItaliana
BAMXY:US — OTC US
BMWA:GR — Frankfurt
BMWM5N:MM — Mexico

 

However, the key role has the stock traded on the Xetra under the ticker symbol BMW because market capitalization of the company is calculated on its basis.  On the official website in the investors’ relations, you can find just the information related to the stock traded on the German stock exchange. Also, you can check reports and news of the concern there that can influence BMW stock:

http://www.bmwgroup.com/

53,3 % of all company stock is traded on the market. 17,4 % belongs to Stefan Quandt, 16,7 % to his mother Johanna Quandt, and 12,6 % to Susanne Clutten.

How to Forecast BMW Stock Price

To forecast BMW stock price, you have to understand what can influence the concern.

BMW produces over one million cars a year and employs over one hundred thousand. In the automotive industry, quality is of paramount importance. Quite often car producers have to recall their cars because of defects including even faults of power windows.  If the company calls back its cars, you can expect its stock price to fall.

BMWFor instance, in April 2014,  BMW calls back from selling in China over 230, 000 cars because of defected bolts, and in June, 1.6 billion old model cars due to potential problems with safety airbags.

A positive factor is a new model release into mass production generally preceded by presentation which also makes a positive impact on the stock price. During presentation, the company starts pre-booking influencing future production volume.  

shares-bmw-A decrease in the stock price can be entailed by interruption of production. This can be caused, for instance, by a production fault or strike.

Any automotive company business depends on the economy, and in this case, on Germany’s economy. If the economy strengthens, this pushes up the stock price, and vice versa.  BMW stock is priced in the EUR.

 

You can follow financial reports, company’s news, dates of new presentations and a launch of new products, information on the top managements, stock price on the websites like

http://www.reuters.com/finance/stocks/overview?symbol=BMWG.DE

http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?ticker=BMW:GR

Demand for BMW products also impacts its stock price.  A rise in demand for the products makes the stock price moves higher.And if consumer demand falls, investors lose their interest in the company and sell stock which makes the price decrease.

Events or changes inside the company, especially relating to senior staff, are also of great importance. Change of management can be both a positive and negative factor. It depends on the reasons why it is changed.

How to Buy BMW Stock

To buy BMW stock, you need an access to the German Stock Exchange Xetra, large capital, and years of patience to make a return on your investment.  According to statistics, an average profit on the stock market amounts to 20% to 25% per annum.

If you are looking for high-yield investments, I advise you to try options on BMW stock, even if you are binary option beginner.

To make a profit on an option, you just have to pinpoint whether its price will rise or fall during a certain period of time, say, during next 30 minutes.

Just few traders have options on BMW stock available to buy. Generally, I deal with 24option , the reliable and time-tested broker regulated by CySec, MiFID, FCA.

Now, I’ll explain how you can make a profit on BMW stock if you trade with 24option

I browsed the broker’s webpage and chose an underlying security, that is, BMW stock. Then, I set expiration to 12:15 p.m., the investment amount to $135 and clicked on the HIGH button because I expected the price to rise:

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At that moment it was 11:57 a.m, and the options was to expire in 18 minutes.

If the price of the BMW stock rose even a pips in line with my forecast, I would make an 73% profit.

18 minutes flew by fast. I checked the trade result on the broker’s website:

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As you see, to make a profit on BMW stock is not difficult. Anybody can do it, even today. You just need half a minute to create your account with the broker and top it up. You can invest in an option for a minute to a day.

BMW stock is an interesting underlying asset to invest, so don’t lose your chance of making money. 

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