Ford Motor Company (F)

StormBroker (33.36) Submitted: 4/30/08 10:55 AM : Start Price: $8.32 F Score: -35.70

Ford recently reported a profit for the third quarter. This is definitely a sign of strength in comparison to fellow Michigan rival General Motors. Perhaps it is time for a Ford turnaround.

Normally I would steer clear of ailing American automobile producers, but Kurt Kerkorian recently announced that his Tracinda Corp. is attempting to increase their stake in the company to about 5.6%. The offer put forth by Tracinda values Ford’s shares at $8.50, currently they are slightly below that mark.

The last time I followed a stock that Kerkorian took interest in was last year while tracking (and periodically owning) MGM Mirage (ticker: MGM). MGM appreciated quite nicely over the next six months, although all casinos are currently down about 35-40% on the year. The take-away from this is that when Kerkorian moves on a stock, it’s probably going to go up, at least for awhile. I would recommend purchasing Ford now and selling it before the next quarterly earnings report (due to the struggling nature of American motor companies) if gains more than 10-15%.

Report this Post Replies: 1 | Reply