Backing into Ford…
February 8th, 2007 by Grant in: Investing, Stock ThoughtsI’ve got a small limit order placed for 200 shares of Ford tomorrow at $8.49 per share. My original intention was to wait for a pullback to just under $8, but it appears that the stock is establishing a base above $8.10 or so.
Sentiment is starting to turn for the company as well, and they’re even getting some respect from their competition.
Today at the Chicago Auto Show, Jim Press, President of Toyota Motor North America had the following statement regarding Ford and its future:
“They’re going to get their share back and they’re going to get the image of the products to where they’re desirable,” said Press. “I respect what they’re doing. I think it’s just going to take time and patience to make sure that they work through the issues.” -Source
Ford is also bringing back the Taurus, which was a great seller until they canned the car not too long ago.
Jim Glassman, a regular Kiplinger columnist, also has high hopes for the company, and the stock, indicating the stock could be a potential double in the not-so-distant future.
Glassman notes that Alan Mulally, a former Boeing executive, was brought in to run Ford. If Mulally can boost the company’s earnings to just $2 a share – still far below the late 1990s level – then even at a modest price-earnings ratio of 8, “the stock would double,” according to Glassman. -Source
Glassman’s outlook on Ford is mostly faith-based, in that they brought in a proven leader (Mulally) to turn a historic company around that already has a solid brand name and a strong market.
If I like what I see, I’ll pick up more shares down the road.
Leave comments
Subscribe to Comments
Loading ...
February 9th, 2007 at 11:02 pm
[…] « Backing into Ford… […]
February 10th, 2007 at 11:00 am
I think you may be on to something. I’ve been looking at AMD, but it appears they’re not doing so hot.
Where do you think Ford will go in the next 6 to 12 months?
February 10th, 2007 at 11:00 am
I’ll believe this turnaround when I see it. Now they’re saving money by cutting healthcare bennies.
Good riddence!
April 13th, 2007 at 6:48 pm
[…] dumped my Ford shares today for a $100 […]