I'm not a Ford's fan. Albeit, I'm surrounded by them. Ford is going no where -- load up and give to your kids.
F is a buy company anytime from 6 Bucks to 14 GM as well (Now correcting to 19 $) then up again to 43
Ford Death Watch 21: Weâre Number Three! By Matthew Neundorf December 26th, 2006 http://www.thetruthaboutcars.com/?p=2841 The average American car buyer is completely unaware of Fordâs financial troubles. They donât know Alan Mulally from Bertie Ahern. They donât know that Fordâs taken out The Mother of All Bank Loans, mortgaging everything up to and including the company logo. They donât know the automakerâs got three years to avoid annihilation. But the day Toyota overtakes Ford as Americaâs number two carmaker, the U.S. consumer will get a multi-media wake-up call. The psychological damage will be profound. Not that Ford sees it that way. âOur focus is on getting our business back on a solid footing to return to profitability,â George Pipas pronounced. âAny talk about sales ranking is little more than a distraction." Thatâs a strange comment coming from a man holding the title âChief Sales Statistician, Ford Motor Company.â But Pipas has a point. Why worry about Toyotaâs rise to the top when youâre fighting to stay alive? Seven years ago, Dearbornâs Darlings were worth just over $80b. This year, Fordâs market cap stands at $13b. Although the company has topped-up its cash reserves with $26b of newly leveraged liquidity, it's set to toss $17b of that into the fire over the next three years. Will it be enough? Ford Flack Oscar Suris claims the more fully funded Blue Oval is perfectly positioned to handle the day-to-day challenges of being number three. Suris insists that neither a recession nor âany other eventâ (wind, sleet and snow?) could force the freshly flush Ford to flounder. John Novak of Morningstar Inc., ainât buying it. Like any sensible auto industry analyst, Novak insists that Fordâs survival depends entirely on its ability to generate cash through improved sales and profit ratios. Without a new cost-cutting UAW contract and substantial regrowth in its market share, Billy Ford's mob will be hard pressed to service the family firm's debt, never mind pay off the principal. To keep the bankers at bay and the coffers at capacity, Ford is staking its short term future on the new Edge. The Blue Ovalâs blitzing the American public with $100m in edgy Edge advertising. And why not? The sharp-looking crossover is FoMoCo's only shot at much-needed, long-overdue new product buzz. To add timbre to that tone, Dearborn is cranking up its marketing machine to new heights. This latest advertising onslaught owes its genesis (genius?) to The Way Fordward Version 1.0. Flying in the face of all the badge-engineered inbreeding polluting the gene pool of Ford's extended family of products, the company has decided itâs all about "Brand DNA." They're going to (re)define their soon-to-be-decided number of divisions, create products that embody these new, more coherent brand values, and then sell the vehicles to people who, um, want them. The Edge campaign is designed to build onâ OK, "initiate" this not-so-novel concept. The Glass House Gang are pitching the cross border crossover in every conceivable medium, to every imaginable market, in every possible language (even âSpanglishâ). Rolling Stone gets a centerfold, NBCâs Las Vegas gets product [out-of-]placement, urban skyscrapers get hallucinatory projections and Edmunds gets richer. Despite the ubiquity, Ford has some human DNA in its sights: single men and women in their mid-thirties with an active lifestyle (codenamed "Phil" and âMiaâ). Celebrities ranging from Korean soap star Ahn Jae Wook to Beyonce Knowles will pocket large checks to push their fan base overâ I mean into an Edge. Ballers nâ playas tuning into to the Steve Harvey show will hear Grammy nominee Kelisâ (pronounced âKuh-Leeseâ) musical campaign contribution: âPush it to the Edge.â Jeri Ward, Ford Edge Marketing Manager, sees the hip hop artist as âthe perfect spokesperson for the urban Edge campaign⦠she has a bold style that breaks the rules.â Apparently, the lady whose milkshake brought all the boys to the yard âprefers bold designs.â So sending them to a Ford dealer should be a piece of cake. Whether or not Phil, Mia and their hip-hop lovin' friends elevate the not-so-bling Ford Edge to stuntin' 'Sclade status, FoMoCo's crossover is sailing straight into a consumer headwind. The U.S. housing market is in its first full year decline since the Great Depression. After years of cash-on-the-hood and no interest loans for anyone with a pulse, the demand for new vehicle financing is drying upâ even as Fordâs middle class mid-market buyer finds that expendable income is becoming as scarce as storage space on Ford dealersâ lots. Industry mavens CSM Worldwide predict that Billy's Boyz will bear the brunt of a nine-year, 16.2m unit low in auto sales. In short, the Edge has got to sell while the sellingâs good. The New York Times predicts that Toyota will scoop America's number two sales slot next February. On that fateful day, American car buyers will know somethingâs very wrong over at Ford. Tipping point or no, selling a Ford is about to get a LOT harder.
Yea, I am kicking myself as too why I did not buy a few thousand shares at around 6.40. a few weeks back....