Buying Ford on a Pull Back
Ford CEO Alan Mulally produced a offering of good faith by reducing his own compensation by 30% along with Executive Chairman Bill Ford.
They’re also proposing another round of buyouts for 42,000 hourly workers and early retirement offers. What better way to reduce the workforce by paying them to retire? Performance bonuses for 2009 will also be eliminated for salaried employees and senior executives.
What’s most impressive is that the company has the UAW on their side in the effort to preserve the company without taking federal money.
Corner Office Comments
I’m pulling the trigger. I’ve got a limit order in for 100 Ford shares at $2.10 per share. I’m happy to see that Mulally is pulling out all the stops to save the company without taking money from the government. If only the others in Detroit and elsewhere could do the same.
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i’m glad you could not pull the trigger…why buy a company whose products people dont need and cant afford? people are retrenching and should buy fewer cars, also the interest rate bonanza and promos of years past already put everyone in a newish car, so sales got pushed forward and now we are stuck with a glut of used cars and no one left to buy new ones. buy more hard assets (ie commodities) if you feel the need to pull the trigger
An update, after getting to the office this morning and seeing how the futures reacted to Barack Obama’s speech last night, I modified my limit order to $2.02 per share, which filled sometime mid-morning.
@hayek,
I agree with your sentiment in principle, however I’m looking a bit further down the road. I think Ford is a long-term player in the auto industry, and my notion is reinforced by strong leadership making tough decisions at the top.
I also agree with your sentiment that commodities are a good bet right now too.
good call on ford. I bot shares under $2 and am trading them.
totally agree on the long term nature of the auto industry…
We are talking here of the fact that China soon shall
surpass the US as the great consumer of automobiles.
The data is not yet out, but it is quite possible that
nearly 800,000 automobiles were sold in China in
January, and this will compare to the approximately
650 thousand cars sold in the US during the same
month.
ford seems the best of the worst american firms @ this time, but i would rather pick the guy who has the best chances in the asian mkt place. dont know if thats toyota, or some up and comer