What do you all think of Ford? I know I should have my head examined for thinking of buying automotive stock, but consider this: If GM tanks completely, which it will, it's one of the big TWO and the only publicly traded car company in America. Stock price has held it's own last couple of weeks against the broader bear market. Just the fact that they did not take any bailout money (correct me if I'm wrong) says a little about the long term viability of the company. I'm think this is a good one to accumulate on the SLOW way up, writing covered calls on the way. Any thoughts? If there has been discussion on this in another thread, I apologize, but I didn't find anything recent.
IMO, F will also be out of business by year end 2010 They can't survive selling 1/2 as many cars, especially when the ones that sell are the cheap ones that wouldn't make them money even if they didn't have to give them away below cost to unload them.
Very funny you guys mentioned that, my dad bought ford at 1.53 and sold at 1.98 anticipating that its range bound for a while at the minimum but a much greater possibility to rally through resistance with this inside/out price action. He has a buy order in again at the 1.50 zone for whatever its worth. He sees them returning to the roots of demming management method and pulling themselves out somewhat but the question is, are they already in too deep? Who knows!
According to the January numbers, the F-150 was not only Ford's bestselling vehicle, it was the bestselling vehicle in the US from any manufacturer. The next bestselling vehicle was a Chevy full-size pickup. Those two vehicles nearly outsold Camrys, Accords, and Corollas combined.
I'm gradually reducing my short position in GM, and gradually increasing my short position in F. I think F will survive 2009, but they will probably ask for a bailout in 2010.
If GM files for BK you can bet the farm Ford will follow. No way Ford would allow the UAW to get the contracts cancelled at GM and not at Ford. Monkey see, monkey do. My personal opinion is that Ford and Gm both get nationalised and then combined into a single American auto company. Then they can kick the foreign auto companies ass after the economy recovers in a decade or so. (ha) In 2020 the gov can then have a IPO to the public and regain the then inflated dollars. Do not forget, we all owe this economic horseshit to the Bush administration regardless how hard the republicans whack jobs want you to believe different. The repubs are never gonna get it right, thus they just block and disrupt. I kinda feel sorry for them.
what did Bush do that Clinton did not do or that Obama is not doing. Clinton started affirmative action lending which got us into this whole mess in the first place. Bush and OBama believe spending out the wazoo will make things better. it doesn't. When one side generalizes and blames the other side, it show how much of an idiot they really are.
This goes back at least as far as Reagan, who institutionalized the unsustainable idea of raising taxes to buy more Treasuries. Arguably, the seeds for this lie with Nixon, who didn't have the courage to keep monetary policy where it was and deal with spending/Vietnam as the problems they were. Instead he went "reserve currency" and price controls. Since 1970, really, the only two administrations that acted with anything resembling an understanding of fiscal responsibility (even if they ultimately failed) where Bush the Elder and Carter. And the electorate rewarded them both with an early boot from office.
Yes it is further substanciating my fears that they all run carry out the same damn practices. They all run on one thing, do another. Once in office, they do the same things.