$8.94
-0.07 (-0.78%)
Ford Motor Company (F)
CAPS Rating:
A producer of cars and trucks combined. The Company's business is divided into two segments: Automotive and Financial Services.
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You guys are crazy on this stock. It's not worth $6 a share period. It wouldn't matter if the entire auto sector went bankrupt except ford.
The point is, they actually can't make a profit even if they sell a ton more cars. Profit isn't coming till 2011 (by Fords best projections, meaning we've recovered by then). To give you an idea...this stock traded for 6.50 a share in 2006, when they were making a profit, and the economy was still good. There's no way it's worth that now.
I agree with the long term bets, I love the companies turn around efforts, like the CEO, and the product is high quality. The issue is, it's just not a $6 a share stock...not even close. The fact is bankruptcy at Chrysler is bad for the economy overall, which means it's bad for Ford overall.
How's it bad for Ford with Chrysler's bankruptcy? FORD's got the "Rouge Plant" which can manufacture their own auto parts. It is a 100% self-sufficient, 1 of a kind, man made miracle of a manufacturing plant. Every auto parts supplier can go under and FORD would still be able to build F150s.
Chryslers bankruptcy has already started to ripple thru parts suppliers (some of which supply ford as well). It will have deep reaching impacts thru out the broad economy, meaning unemployment will get higher, and overall auto sales will continue to decrease. No one wants to buy trucks anymore, SUVs, Trucks, and Cross overs are still the money makers at Ford. They are getting better at cars, but they're not profitable. i.e. they could sell millions of more cars and not be profitable. That's why they themselves (which you know is filled with all kinds of optimism) don't predict profitability until 2011. It's a simple question...why would you value a stock virtually the same as it's 2006 price when it was making money, when it's not now. Stock prices only project 4-6 months of the future...Ford will not be turning a profit for probably 2 more years. This is simple over excitement about the stock...which largely is not justified, pretty much like most of this rally. The rally is stalling, so will F defy gravity? I'm doubting it. F still has 15 billion in debt that they will continue to pay interest on, and have to repay, as well as their continued cash burn. I don't see favorable refinancing terms for years.
I dont necessarily agree with your reasoning here, since 2006 they have cut out work force and plants, not to mention the new concessions with the UAW. Granted it is a long climb back, but everyone has to realize that FORD is a global company and with the rise in demand from India and China i am sure that FORD will capture more of the growing market share. Their overall quality has been on the rise for quite some time, gone are the days of the Zepher and Pinto, and the Fiesta and Focus will help lead us back into profitability.
This guy's right. They're done. The amount of negative equity is enough to turn me away,.
Ford is the only remaining "American" car company. That means a LOT, especially in the area between California and New York.
How much does it mean when someone in Iowa test drives a 2010 Fusion but buys a Passat instead? If I am not mistaken, Iowa falls between CA and NY. I liked the VW a lot more than the Fusion (which is assembled in Mexico so it can't be considered an American car anyway).
I don't think the earnings power is there yet to support a $20+ Billion market cap. They still have over $17 Billion in NEGATIVE equity on the books and it is pretty expensive for them to borrow money.
Also, Ford's earnings results are very seasonal (look at individual quarters from recent years). It is not uncommon for Ford to post a big profit one quarter and then a huge loss the next. I suspect that they've been working off inventory and slowing production and this is the catalyst for their recent quarterly profit.
u r the crazy 1. particulary ur statement not make a profit. many things have happened that show dramatic improvement 4 the future. they r still suffering from errors with uaw, that r set 2 correct in the future
Once they start makeing profits again, they will be operateing leaner than they ever have, with new employees comeing in at lower starting wages and benny's, It should be the beginning of 5 to 8 yrs of back to back profits, non stop until the US heads back into one of its notorious recessions, and again Ford will see it comeing and survive.
I believe stromprophet is trying to build a case for the "shorties." Longs will be waiting to put the the Squeeze on the shorts.Its starting to take affect now.IMO
Ford is already ahead of its own projections