Have you looked at their balance sheet lately or anytime in the past 10 years ? It isn't getting better ... Doesn't matter how good the cars are now ... they are selling alot less cars now then used to and they still have all those retirees they are trying to support from back in the day when they made more cars... Legacy costs increasing + selling fewer cars = they have to make more money per car going forward then they were in the past. How are they going to make more money per car when they haven't been able to make money while selling more cars in the past then they will in the future ? How long will they continue to be able to borrow essentially free money to sustain their operations ? I drive an Acura cause their cars don't suck and they have better resale value which doesn't mean alot if you buy a car and own it for 10 years but if you wreck it or it gets stolen or you trade it in within 5 years ... it does make a difference.
Cramer strikes again- He was at the FORD home office a few months ago. Stock was well above 18 and he couldn't tout it enough. Said it was a buy, buy, buy and the management was fantastic and business was great. It marked the high of the move and it's been getting crushed ever since. Down 25% in a couple months since his call. Another awful call from Cramer (and as usual, the guy never mentions it again).
Ford gets insane volume every day. Lots of investors trade it daily if they see a setup and like the trade. Ford was a great buy for a long-term portfolio at $2.00 Today, I think I think it would be a good value for a long-term portfolio around the $10 mark.
CEO made very optimistic projections, but the stock seems to be slowly drifting lower and lower. I would think it was the gas prices, but other auto stocks are doing much better. Dont know whats the problem.