Varchild vs. Credit Suisse? Not hardly.. I agree
Varchild vs. Credit Suisse? Not hardly.... I completely agree with Credit Suisse.
If FORD held the same growth pace for the rest of this year as they have shown in the past 4 quarters....we would have a growth pace of performing 160+% better in EPS than 2009.
Looking at Q3 & Q4.... Ford would have to pull off an EPS 160% better than .26 in Q3 or
67 cents a share in Q3 2010.
Does that even sound remotely possible?
Of course not! One doesn't even have to bring up Ford Credit or Materials Costs or increased hiring leading to greater labor costs or UAW battles/fights or lawsuits or whatever that impacts earnings.....recalls.......etc.
I seriously don't think FORD investors have ever expected anything out of FORD other than solid market share gains leading to a much higher market share that will of course stabalize at some point.
Fast growth hits a levelling off period all the time. And is that a bad thing? Is it bad for APPLE's iPhone to one day have a 50% Market Share and then the growth stops but the Market Share stays at 50%?
Is that bad? ? ? If you think so then you are wrong.... Market Share or Growth Stabalization doesn't mean Sales are flat...
Sales can skyrocket for APPLE's iPhone and yet market share stays the same cause other cell phone competitors had similar sales growth. Nonetheless...Apple enjoys bigger profits.
Bottom line.... Don't let things like Credit Suisse Analysts declaring FORD an underperformer discourage you from your holdings... FORD is still a "HOLD" and that is where Standard and Poors has FORD...a 'HOLD.'
Varchild never said, "I am selling FORD as soon as Market Share stops getting bigger."
I only said that if Market Share starts SLIPPING....FALLING.....then I'll be deeply concerned.
Market Share stabalizing is actually what I fully expect 2nd half of 2010.