MsoBaal: I've been following your posts for a long time and they have always been Positive about Ford. Now that your sold you have turned Negative! Now is a good opportunity to buy back-in @ 5.35PPs. Positive News: Ford has increased Market SHare to 18%, beat Toyota in sales the last three months, Independent of Gov't bailout, and cash reserves are sufficient to last until 2010. It's all about PRODUCT: 2010 Fusion and Hybrid off to a great start, New Taurus and Lincoln MKT to be introduced this summer. Next year new world cars: Fiesta and Focus will be introduced.
Are you the same MsoBaal? IF so, I don't understand your Logic, now that you did a complete 180!
Got a calender handy? Rick Wagoner was crowing that General Motors had cash to last until 2009 in March of 2008. It crashed by Dec. 1. Cash on hand statements scare me, Deja Vu and all.
Damn, 2010 is six months away. Rick was talking smart BEFORE the economy fell apart. How long can Ford really hold out in this nasty recession? They have got to seriously slow the cash bleed, and soon.
"Positive News: Ford has increased Market Share to 18%, beat Toyota in sales the last three months, Independent of Gov't bailout, and cash reserves are sufficient to last until 2010".
You hit the nail on the head. The cash burn continues. What happens if sales to not increase. Sure Fords market share has increased. GM had and still does have a higher market share than Ford and it still went bankrupt. In my opinion the problem with the Big 3 is not that they are badly run companies, rather free trade laws have caused an influx of foreign automakers that have drasticly caused the big three to loose market share over the last 30 yrs by over 50%. Cars are like TV sets. Eventually they will all be made in China.
Yes, I am the same person who was bullish on Ford until May when I started having serious reservations about Fords last hope for recovery, the "Cash for clunkers" legislation. I disagree that it is all about "Product." Its really all about "sales." The truth is that no car company, foreign or domestic can turn a profit when the run rate on domestic sales is less than 10 million a year. True, Ford may have paid off some secured debt, but it has also fully used up its 25 billion unsecured line of credit, you remember, the mortgague on the Blue Oval. It sales don't pick up in the next 6 months, Ford will be in a cash crunch again next year. Sure Ford could sell Ford Motor Credit and other uncumbered assets but at the end of the day it all about sales. With unemployment pushing 10%, and no signs of a recovery, you have to ask "where is the light at the end of the tunnel?" To me the lights went out when the "Cash for clunkers" legislation failed to provide a meaningful benefit to consumers sufficient to make them go out and buy a new car.
Shorts join here, they gain your confidence, and then BAM! They start the scare tactics to run you away from your money!!!
Just hit ignore. Works each and every time.
Sorry, but I am ignoring you as well.