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Varchild2008 (85.21)

FORD is an OIL STOCK!!

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May 28, 2009 – Comments (5) | RELATED TICKERS: F

2 short months ago Bill Ford whined yet again saying paraphrased, "The government needs to raise the Gasoline Tax! No one is buying our fuel efficient vehicles with gas prises this low!"

That brings me to my premise.  A lot of people are starting to panic out there over oil prices soaring through the roof... a bee line projectory to $80 for a barrel of oil.  I am here to tell everyone that HEY... You can whine about it.. Or you can make sure your portfolio benefits when Oil goes up.

There are hundreds, if not thousands, of ways to benefit on the increase in oil.

Here's one way to benefit that I am sure gets overlooked.....

BUY  A  CAR COMPANY!!!

And why not FORD?  It's now cheaper in price than Tata Tata Motors still and raking in tons of shares at a cheaper price is always good.  Today's news shows perhaps an 8.9% increase in auto sales in May versus April's sales.  This doesn't mean cars are selling better this year over last year (and last year was real bad).

What it means is that FORD trades with OIL...   FORD (F) = OIL STOCK!!!

Those who know that when Oil Prices go up,  Ford Fusions get sold, are buying FORD stock.
Those who don't put the dots together are shorting FORD hoping to get a $3 handle out of it or better.

FORD's share price remains stable for quite awhile now at or above a $5 handle.  Some overly opportunistic, overly optimistic analysts are salivating over expecting a $9 handle.

Understanding FORD and where it is headed..starts with realizing that FORD isn't profitable yet.
That means it ain't no stinking $9 handle anytime soon.

But... at $8.00 a share we are saying to investors that FORD's next Quarter = FLAT.

So....To invest in FORD... or not to invest in FORD.... I think it is more about how you view FORD.

If you look at FORD as 1 of the 3 companys in America whose business is obsolete by foreign competitors....  Then don't buy FORD.

But.. IF you view FORD as simply a Hedge for your Beverage / Retail sector stocks in terms of the fact that FORD = OIL STOCK...  Then it can't hurt to hedge your portfolio!  Especially before the stock touches $6 and change.

5 Comments – Post Your Own

#1) On May 28, 2009 at 2:33 PM, Varchild2008 (85.21) wrote:

Disclosure!

Varchild the MORON.... Owns 215 shares of (F).

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#2) On May 28, 2009 at 3:10 PM, sarcaz (26.00) wrote:

What do you think of the Ford preferred stocks?  And which of those would you choose, if any?

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#3) On May 28, 2009 at 3:45 PM, Varchild2008 (85.21) wrote:

There is more than one?

Sorry but the only preferred I am familiar with is F-S.
And seeing as how I have NEVER invested in a preferred before and do not have any knowledge with preferred investing... Listening to anything I say would be dumb.

But, I will say this.  FORD is controlled by the family today and forever in the future.  Therefore... Even if it never made sense to buy preferred shares on the grounds that you get NO SAY in the company.... No real Voice....No real VOTE....

FORD is different...  If the common stock provides for no vote then it's perhaps smarter to do Preferred FORD.

And.. While I know NOTHING about preferred investing... I do know that I would probably go after whatever has the biggest yield percentage.

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#4) On May 29, 2009 at 11:13 AM, jstegma (29.15) wrote:

I wouldn't touch Ford stock with a ten foot pole.  Way too much bankruptcy risk.  It also has to compete with Government Motors.  Of course the #1 problem is that people can't afford to buy new cars right now.  Also, people bought a ton of cars in the recent easy credit frenzy, and they will keep them for years in order to save money. 

If you do the math, you'll see that it takes a long time to get paid back on buying a new car for fuel savings. 

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#5) On November 10, 2009 at 9:00 PM, BrandonPaulChevy (< 20) wrote:

well, I just don't get it. Why is there a need to increase on the oil taxes if ford parts, specifically ford engine parts are fuel efficcient.

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