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Varchild2008 (84.02)

Wall Street Shrugged



April 26, 2011 – Comments (4) | RELATED TICKERS: F

Varchild2008 owns 632 shares of (F) FORD and is biased in favor of FORD.

So the best 1st Quarter Earnings report for Ford Motor Company since 1998 produces a whopping increase in share price of 12 pennies!

Nevermind the share price is still deeply in the RED year to date....

Nevermind the P/E multiple is still historically tiny compared to where it should be....

Nevermind the market share stands at a solid 16% U.S. and 8.5% elsewhere.

and Nevermind the Japanese Earthquake/Tsunami Parts shortages story has been blown out of porportion.....

Cause (F) Ford Motor Company deserves to sell for no better than $15.66.

Apparently....Standard and Poor's seeing EPS beat in the double digits is grounds for an increase in their Ford Motor Company pricing target by a jaw droppin $1.00.  1 dollar.... 1 lousy dollar...
From $18 to $19.   WOOPIE!!!!    They predict $2.18 now for the full year EPS 2011 and $19.00 is their pricing target???  That's not even CLOSE to a 10X multiple!!!

Since when does a stock producing HUGE earnings growth...beating earning estimates about 7 times out of 8 quarters or so???  Since when is that story NOT DESERVING of at least a 10X multiple??

Since when?????

Wall Street may Shrug........ATLAS may Shrug.....

But, Varchild isn't shrugging.... So I'll be the first to say it.... 

$25.00 and Investment Grade Status by the end of year.... How's that for a pricing target prediction?

Oh and please do explain how (F) still remains at 3 CAPS stars??? just a lousy 3 stars???
endless earnings beats and 3 stars?

Maybe investors should stop giving NETFLIX, AMAZON  a bazillion times earnings multiple and start looking at some of these obviously undervalued stocks in the stock market a little more love?

4 Comments – Post Your Own

#1) On April 27, 2011 at 12:55 AM, buffalonate (44.14) wrote:

I own Ford and I also think it should be much higher.  I am going to buy more in the next few days.  The auto market is growing worldwide.  High oil prices are the only reason I can think of not to like the auto stocks. 

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#2) On April 27, 2011 at 10:44 AM, Melaschasm (< 20) wrote:

Ford appears to be in a strong position.  The one big danger is the harm rising gas prices will do to Ford. 

I also find Fords low P/E to be surprising, and a nice buying opportunity.  Ford's focus on paying off debt is a the reason I am interested in a company with a higher debt ratio than my normal real money investments.

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#3) On April 27, 2011 at 4:37 PM, buffalonate (44.14) wrote:

They said that they expected future earnings will be hurt by less truck and suv sales due to gas prices.  Either way it has a p/e ratio of 9 and is growing earnings much faster than that so it looks like a steal to me. 

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#4) On April 27, 2011 at 4:43 PM, mtf00l (43.08) wrote:

I wonder what the "big money" knows that the rest of us don't?!

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