Ford Took Its Lumps
January 25th, 2007 by Grant in: Investing, Stock ThoughtsFor a company who lost $12.7 Billion in 2006, Ford stock sure is resilient.
The stock opened the day down $0.20 from the previous close, was up $0.32 before closing up just two pennies.
To be absolutely honest, I was hoping the stock wouldn’t fare so well so I could start picking up a few shares. I had a near term price target of under $8, and with forecasts of a lousy ‘06 earnings report, I thought I was sure to find some easy shares today. Not so.
In taking a deeper look into my analysis, I have a feeling that the terrible performance was most likely factored into the price of the stock. The fact that no one was surprised at the huge loss helped support the stock price.
I still think the stock will pull back, perhaps significantly so. While my buy in target is still under $8 per share, the reaction to the financial news over the next two days will solidify my target price. If the stock starts heading downward fast, I will lower my target to around $7 where there is near-term support. If we see a gradual decline, I’ll leave it at a more modest $7.75.
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January 26th, 2007 at 9:20 pm
but their finance dept., i’m sure, is doing really well
January 28th, 2007 at 10:02 pm
Probably true, hustler.
“Here, buy this car that you can’t afford. Don’t worry, we’ll finance you…”
I see a few similarities between the mortgage business and the auto finance business…
-Grant
January 28th, 2007 at 10:04 pm
I can’t ford is still going up. They lost more money than ever last year and theyre up 20 cents. Incredible.
Like U I M waiting for a pull back. Havent seen one yet worth jumping on tho.