Few buying vehicles, housing further declining, spending declining, income declining, GDP declining, consumer confidence declining. I think F returns to lows of November.
I find it amzing that few address the lack of sales and month to month expenditures to keep all the dealerships open. I like F but I must assume the governmnet's money is the only thing keeping this stock up. It certainly can't be employment, income, spending, gdp or current consumer confidence which all continue to fall. GL everyone.
You must be short and are doing your best to shake confidence through some overly simple logic. The bet here is whether F is going bankrupt and the less likely that appears to be the case the higher the stock goes. Again, if F makes it this is stock is a 10 bagger. If you're trying to ride the short wave then good luck...you'll make some $$ in the short term, miss the bottom, try to short again, etc. until one day you and the hedgies find yourselves on the opposite side of the table from the MF's and there will be the mother of all short squeezes as you try to continue to push it down while the mutual fund managers gobble up stock and send it through the roof.
It's not going to $1.00 again unless people think it's going into bankruptcy. There will be a lot of volatility though and we may see $2.00 or even $1.75 as the hedgies manipulate this stock six ways from sunday.
Love F but here is my thinking and question.
Its true F selling very little.
Its true stock has gone up.
How does a company not selling much continue to have its stock rise?
Pretty cool if you can pull it off. GLTA.
Nope. Greed is the bottom line. Chasing sales in the market is a losing proposition...like chasing real estate. If you can't look beyond numbers then you belong in index funds. Sales will follow once consumer spending resumes so the bet is whether F has enough $ to weather the storm. The market has concluded they likely do and that the government isn't going to allow the entire industry to fail around them so that takes the risk from GM and the suppliers failing off the table for the most part. We're highly unlikely to retest the bottoms and if you're short or not in now then you're missing the moves.