I think Ford may now have dropped into a negative tangible net value as of the 3rd quarter report. In other words, your stock is worthless now, in a liquidation.
Tanglible book was about $7B at the beginning of 2005, and that's now been completely lost in the last three quarters.
What better reason for shareholders to get excited and rally the stock 5% :) Just remember if your retirement money is in the market, this is a casino, not a place for sober adults.
Still, paying $8.26 for something worthless isn't as stupid as American Airlines shareholders who are paying $27.70 for a stock worth negative $7.00. Stand back and ask yourself if, in a global stock market, these are the best investment ideas you can come up with ?
I agree with you! Ford said it would be at lease 2009 before they would be profitable. They are losing money at the rate of over 10 billion per year and the loss may get even worse. So we are looking at Ford losing another 20 Billion + or - before they become profitable. That is if they become profitable in 2009. If not even more loss!
You totally miss the fact that almost all of Fords debt is secured by the auto's it sells. You also miss the fact that Ford has more gross sales than Toyota. That kind of selling power has tremendous value. There are two ways to make a profit: 1. Increase sales like Toyota, or 2. Decrease expenses like GM. Ford is decreasing its expenses by lowering the number of employess and closing plants to get inline with sales. Like GM, Ford stock price will soon double.