Ford Motor Company (F)

notsofasteddie (< 20) Submitted: 9/20/06 4:39 AM : Start Price: $7.71 F Score: 41.11

With the fourth generation of a family at the helm of a company it is usually the generation that throws the company into collapse and ruin. Bill Ford at Ford Motor should have moved aside when he got rid of Jacques Nasser. This company is in a shambles, losing fistfuls of money to high labour costs, turmoil in product management, poorly running plants,high labour costs. And yet if it pulls off a merger with another major auto corporation and gets rid of a great many losing lines of product and cuts itself to the bone it can make money. I have owned Ford three times. The previous two times 5 years ago I made good money in the $18-28 range. I have bought into this again when it was depressed to $7.90 a few months ago. This is a bargain for the contrarian strategy and with a cleanout at the top of the management, and costs cut to the bone and the Fords not in control of Ford Motor Co, anymore this can become a turnaround stock to watch out for. I cannot see the US governaernment allowing Ford to go bankrupt- there will be intervention if the Ford family fumbles. Just how much more bloodletting is necessary remains to be seen.

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