F will go UP
$10.00 on 5/03/10 (44 days left)
$13.29 (133.57% from time of market call)
( F ) Ford 5.69 a share as May 1, 2009 Target Price 10.00 a Share.
Ford Motor Company (Ford) is a producer of cars and trucks. The Company and its subsidiaries also engage in other businesses, including financing vehicles. Ford operates in two sectors: Automotive and Financial Services. The Automotive sector includes the operations of Ford North America, Ford South America, Ford Europe, Volvo, and Ford Asia Pacific Africa segments. The Financial Services sector includes the operations of Ford Motor Credit Company and Other Financial Services. During the year ended December 31, 2008, the Company sold the ACH glass business to Zeledyne, LLC. The sale included the Nashville, Tulsa, and VidrioCar plants. In 2008, Ford and its subsidiary, Volvo Car Corporation, completed the sale of Thai-Swedish Assembly Group to Volvo Holding Sverige, AB. In March 2008, the Company acquired 72.4% of the shares of S.C. Automobile Craiova SA. In June 2008, the Company completed the sale of its Jaguar and Land Rover operations to Tata Motors Limited.Nice run up in the last month... Look to see some profit takers, then watch out double digits...Ford did not get involved with the big bailout. They have a plan and they have enough capital to help them through the recession. With GM and Chrysler going under, I think Ford will be in a better market position. The Focus will probably be a big seller among the X & Y crowd.Meet the NEW number one U.S car maker. Nowhere to go but up from here once the economy recovers. With the cutbacks this company already made prior, and no debt, profitability is certain. With the economy now turning around, consumer spending and car sales will increase. I would assume if bankruptcy comes for either GM or Chrysler's, then Ford sales definitely will benefit.Customers who want a domestic vehicle will shy away from the other two. Ford has a good handle on reliability and fuel economy. I feel that once the job market opens, people will resume the purchase of new cars and trucks, and banks will follow suit with increased consumer loans. The economy will spiral upward.Has new products and has been aggressive in cost cutting. The right size for a the auto maker to become lean and mean.Ford has spent the past three years paring its capacity, its workforce, and its debt. More importantly, it pared its cars gas consumption and will soon have the best MPG rating in all car classes in which it competes. In contrast, its North American competition has stumbled. Aside from GM and Chrysler's woes, Toyota and Nissan and Honda are all hurting. Much worse, 2008 saw Ford retain its lead in truck sales, hurting Toyota and Nissan who spent the past three years planning on taking share from Ford and GM.
Meanwhile, GM and Chrysler have spent the past six months in desperation and will spend the next six attempting to survive...and then the next few years paying back the Government if they are still around. With these companies stumbling now, Ford will take market share form them for the rest of the year as sales decline and will then be able to increase share against them and the rest of the world when the auto industry does rebound.
Ford won't beat the rest of the world's automakers in the next few years in terms of production and revenue, but it doesn't have to. It will exceed expectations and beat the market from here with capacity in line with sales and vehicles that will sell better than capacity. While GM and Chrysler have been screaming for government bailouts, Ford has been surviving on its own. Recent reports point to the great likelihood that Ford will not have to worry about bankruptcy and the company projects operating profits in 2011.
This is a long term pick, buy and hold.............
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