Ford is undervalued according to IBD data but same data show the stock is being accumulated at the same time. Its relative strength is turned down. While Moody's ratings helps Ford, the extra shares soon to be on the open market will hold the price down for a short period of time. How long? No one knows.
The key to F's revitalization is found in its CEO Alan Mulally. He's an extremely talented and competent executive unlike those we have seen at GM and Chrysler. Bill Ford was prescient in stepping down and putting Mulally at the helm. F will survive the current macroeconomic malaise and, in time, the company will thrive. And Mulally will be the one who will have steered it into profitability.
you sound like you are someone who knows what they are talking about ;-)
The truth of the matter is you are dead on. I've said it before, this a question of time. Does F have enough cash reserves to make it through the next several quarters. I believe the company does. Furthermore, I believe that we will soon see upticks in industry sales volumes (not year over year) but month over month. The next several weeks for Chrysler and GM will be painful - do they get help or not, do people buy their product or move on to a transplant or Ford product, does the UAW and bondholders all of a sudden come to the plate?
Meanwhile, FMC continues to invest in its core products, retool its plants, focus mktg spend on transforming consideration into intent to purchase. People don't realize just how much all this helps to distance this oem from the nearly dead back of the pack..
Disclosure - very long, way overweighted, but highly confident that the fundamentals are in place for a very fast start once the market ticks up.
Just does'nt make sense for people to keep on buying shares on a company that hasn't seen profit in years. It has no products that people are clamoring for and doesn't unfortunately even retain the value.
Check out the new Fusion... 41 MPG CITY is a pretty good product. With aging fleets of taxis in most large cities, the Fusion might be just what the doctor ordered... If the tax credits extend to taxi cab companies, this ought to be a no-brainer.... Yes one car does not make a company. But I believe that the Ford pipeline and their world platform production plans for late 2010 and into 2011 are certainly worth a bit of speculation. After all who will their competition be?
GM and Chrysler will be left in the dust and the Japanese are starting to take note of Alan Mulally and Ford....