14 Month Update: Valuemoney Challenge
What is the "Valuemoney Challenge" and are YOU participating?
Valuemoney claimed back on February 25th, 2010 that FORD motor company's market cap, share price, was being priced waaaay too high. Valuemoney thus red thumbed the stock.
He red thumbed it thinking that LONG TERM his score would be GREEN and he would earn points off of his red thumb on Ford Motor Company.
I challenged Valuemoney to a contest.... I would NOT SELL 1 SINGLE SHARE of (F) Ford Motor Company for 5 straight years..... I could accumulate shares....But, I can't sell any shares that I am holding.... can't sell any shares I accumulate.
I currently hold 632 shares as I have recently accumulated from my previous total of 564 shares.
Valuemoney's Red Thumb is in the RED (not GREEN) by just over 9 points. He has not closed his red thumb despite it being in the red for half a year now (give or take).
14 Months Later Varchild2008 is accumulating FORD shares.... Not Selling....
Here are the FORD negatives (reasons Varchild2008 could lose this Challenge):
1) Parts Shortages are causing Ford to shutdown 2 plants....
2) Ford is now among the worst selling companies of Vehicles in Europe. Market share is bleeding!
3) Ford's Market Share on a Year over Year basis this year is Worse in America!!
4) High OIL prices could eventually errode sales of F150 Trucks, SUVs, and so on which have the largest profit margins for Ford.
Here are the FORD Positives (reasons Valuemoney will pull his RED THUMB and lose)
1) Market Share is on the rise in America while Government Motors market share is trending lower over the past 3 months.
2) Ford is still pushing hard for expansion in Asian Markets despite Japan Parts Shortages.
3) As of end of 2010, cash on hand exceeds overall debt. The situation after Q1 2011 can only have made the gap between CASH and DEBT even better.
4) S&P raised their opinion on FORD from Hold to BUY back in March and reiterated that on April 1st 2011. Despite all of the negatives listed above, S&P hasn't changed their minds on their BUY recommendation.
In Short? Varchild2008 recent accumulation is only the beginning. (F) Ford is a long term buy at any price.
P.S. Varchild2008's opinion is that of a complete moron....So don't listen to him. Instead just do your own research or consult an actual professional for advice. Do not confuse blog posts on www.fool.com as opinion coming from professionals when those at least not written by TMF employees are certainly not necessarily certified professionals.