Took Gains on Ford
March 23rd, 2009
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I cashed in my Ford (F: chart, web, Y!) shares today for a nice 40% gain. I probably left some money on the table considering the new details of the Treasury’s plan for bad banks, but I had that uneasy feeling that the latest gains from the only well positioned U.S. car maker may have run their course. For now.
I still feel strongly about Ford’s potential and it could very well be the sole survivor out of the Big Three, Alan Mulally has buy-in from the union and is mounting a strong effort to buy back debt.
I’ll continue to watch the stock and will get back in after a modest pull-back, whenever that happens to be. Right now I’m looking at the $2.50 range for another trade.
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Mulally is the same guy who beat up all the old Boeing unions before heading to Ford. Ford in my mind is a play only for a US car company that should survive, not necessarily the numbers behind the company. They could very well need government money as much as the other companies, but I think are showing that they adjusted inventories more quickly than the other US companies and are surviving because of this.
The outlaying factor about Ford or any car company is America going to purchase new vehicles in the numbers as before. Clearly it is not, at least not for 5 to ten years. They have some other plus’s such as a mature hybrid technology on the Escape, extemely good diesel engines in Europe that may come to the US, a well thought of small car (Focus), and company that can size itself to the demand of the public (unlike GM in its current state).
If it was me, I would stay away until the summer numbers are shared again. Good short term play Grant.
Good call.. glad you made a nice profit.
Well done Grant!
Though I talked up Ford so much, I never pulled the trigger and bought in so I’m kicking myself for my hesitation…
I think you timed it nicely — had I made the move, I would have cashed out this week too…