Ford Stock...Good Buy
Just investing $1000 would now yield $6000!
06-11-2009, 08:54 AM
#12
1st Gear Member
Thread Starter
Join Date: Sep 2006
Posts: 86
I still believe it's a solid stock for the long term. It's obvious that Ford is the most financially stable American Car Company. Having said that, I can't imagine that they will go bankrkupt or be bought out. I could seem them getting to $20 share in 5+ years...just my .02
06-11-2009, 09:04 AM
#13
4th Gear Member
Join Date: Jun 2008
Location: Newark, Delaware
Posts: 1,259
I (as a fresh college graduate) recently bought 470 shares of Ford at 5.18. I had a hunch that the bottom had occurred in February when shares hit $1.30 for the day's low. I couldn't scrape together enough liquid funds to go through with the purchase at that time (not to mention I didn't have an online trading account set up at all).
With online brokers, be aware that it usually takes 8-10 business days (aka a big fat float) for your money to get transferred from your checking/savings/etc account to the new brokerage account. Once the money hits though, go nuts. Make sure you trade during market hours though. I got very lucky in that Ford exploded to over 6.20 2 days before I bought it because they released their April sales in mid May...the next day, it fell to about 4.95. I put the order through for my shares in the off hours, and instead of getting around 4.96 a share, when trading opened the next day, my shares were purchased at 5.18. Not completely bad, but the sudden increase in price overnight was more dramatic than I had anticipated.
Know the risks! For me, Ford is definitely a long-term buy. Sure, if you got in at 1.30, you'd be up over 550%, but Ford is under great leadership (Alan Mulally) and also remains solid so long as unemployment doesn't take a huge plunge again. The long-term gains are still there.
Be aware, however, that GM and Chrysler are going to be allowed to shut down a MUCH higher percentage of dealerships and manufacturing plants than Ford is due to government ownership and the Chapter 11 bankruptcy filing. GM and Chrysler will be very VERY lean when they emerge from bankruptcy restructuring, and Ford will not be so lucky if the American people forget that these poorly-run car companies had to flee to the government and to bankruptcy because of foolish high-risk/low-reward behavior on the part of previous management.
Ford has stated that they're not exploiting GM/Chrysler's bankruptcy to gain market share, but they are beginning to increase output again. Ford stockholders are hoping the restructuring process takes longer than anticipated, giving Ford more time to both shed extraneous inventory, re-equip existing plants, and gain market share. All I can say is that I've seen more Ford commercials in the last 2 months than I have in my entire life.
It's a solid buy for now, but understand the volatile climate, conduct thorough research to make sure you still think it makes sense to buy, and absolutely don't invest more than you can afford to lose...ever.
With online brokers, be aware that it usually takes 8-10 business days (aka a big fat float) for your money to get transferred from your checking/savings/etc account to the new brokerage account. Once the money hits though, go nuts. Make sure you trade during market hours though. I got very lucky in that Ford exploded to over 6.20 2 days before I bought it because they released their April sales in mid May...the next day, it fell to about 4.95. I put the order through for my shares in the off hours, and instead of getting around 4.96 a share, when trading opened the next day, my shares were purchased at 5.18. Not completely bad, but the sudden increase in price overnight was more dramatic than I had anticipated.
Know the risks! For me, Ford is definitely a long-term buy. Sure, if you got in at 1.30, you'd be up over 550%, but Ford is under great leadership (Alan Mulally) and also remains solid so long as unemployment doesn't take a huge plunge again. The long-term gains are still there.
Be aware, however, that GM and Chrysler are going to be allowed to shut down a MUCH higher percentage of dealerships and manufacturing plants than Ford is due to government ownership and the Chapter 11 bankruptcy filing. GM and Chrysler will be very VERY lean when they emerge from bankruptcy restructuring, and Ford will not be so lucky if the American people forget that these poorly-run car companies had to flee to the government and to bankruptcy because of foolish high-risk/low-reward behavior on the part of previous management.
Ford has stated that they're not exploiting GM/Chrysler's bankruptcy to gain market share, but they are beginning to increase output again. Ford stockholders are hoping the restructuring process takes longer than anticipated, giving Ford more time to both shed extraneous inventory, re-equip existing plants, and gain market share. All I can say is that I've seen more Ford commercials in the last 2 months than I have in my entire life.
It's a solid buy for now, but understand the volatile climate, conduct thorough research to make sure you still think it makes sense to buy, and absolutely don't invest more than you can afford to lose...ever.
06-11-2009, 09:07 AM
#14
2nd Gear Member
Join Date: May 2006
Location: Northwest Territories, Canada
Posts: 164
I am of the same opinion - wish I would have bought at 1.75, now its at 6.30.... but hindsight is 20/20 right? I think that Ford is doing better than the rest right now, but it isnt a stock that will bring a significant gain in the next little while...
EDIT: East87 - Good write up about this topic... I did the same thing when I bought my first stock online, did it out of business hours, opening price went up, paid more than I anticipated, but thats how we learn right?
EDIT: East87 - Good write up about this topic... I did the same thing when I bought my first stock online, did it out of business hours, opening price went up, paid more than I anticipated, but thats how we learn right?
Last edited by Shelby_Daytona; 06-11-2009 at 09:11 AM.
06-11-2009, 02:02 PM
#16
4th Gear Member
Join Date: Jun 2008
Location: Newark, Delaware
Posts: 1,259
****EDIT****
Nevermind! Ford will not be issuing any additional common stock for now.
http://finance.yahoo.com/news/Ford-S...3701.html?.v=1
The post below is still correct in principle, but again, there will be no immanent issuance of common shares!
****/EDIT****
For anyone interested and wondering, there might be a solid opportunity to get into the market with Ford. CEO Alan Mulally has stated today that Ford might issue more common stock to trade debt for equity, basically to raise money through the purchase of common stock from investors like you and me to offset the billions it holds in debt.
The overall (and often temporary) effect this has is to diminish the price of common shares because the share volume is suddenly diluted. Prices fall because each share represents a smaller slice of company ownership, and therefore, not worth the price per share before the addition of stock. However, as demand increases (because prices are lower), prices pick back up, especially since this is an active step to reduce debt.
2-3 days before I bought my 470 Ford shares, Mulally announced the issuance of a few hundred million shares (345 million to be exact) in what was deemed "a show of strength" but ultimately served to help trade debt for equity, as is the goal of this current offering. What happened? Prices fell from ~6.30 to around 4.95. It wasn't a week after I bought my shares at 5.18 that the price broke the 6.00 mark again.
Not only will these new shares help Ford out, but this could be a solid buying opportunity if prices dip enough. I cannot speculate as to how much they will go down because the common share offerings haven't been formally announced yet.
A few other things Mulally is saying:
"June sales are already on pace to improve from May's results."
"We are very rapidly moving on our plan to improve the balance sheet. Going forward, we will really accelerate that as we return to profitability and start repairing the balance sheet even more."
"...On track to break even or post a profit on a pre-tax basis in 2011"
Here are some links:
http://finance.yahoo.com/news/Mulall...2866.html?.v=4
http://www.reuters.com/article/marke...0090611?rpc=44
Nevermind! Ford will not be issuing any additional common stock for now.
http://finance.yahoo.com/news/Ford-S...3701.html?.v=1
The post below is still correct in principle, but again, there will be no immanent issuance of common shares!
****/EDIT****
For anyone interested and wondering, there might be a solid opportunity to get into the market with Ford. CEO Alan Mulally has stated today that Ford might issue more common stock to trade debt for equity, basically to raise money through the purchase of common stock from investors like you and me to offset the billions it holds in debt.
The overall (and often temporary) effect this has is to diminish the price of common shares because the share volume is suddenly diluted. Prices fall because each share represents a smaller slice of company ownership, and therefore, not worth the price per share before the addition of stock. However, as demand increases (because prices are lower), prices pick back up, especially since this is an active step to reduce debt.
2-3 days before I bought my 470 Ford shares, Mulally announced the issuance of a few hundred million shares (345 million to be exact) in what was deemed "a show of strength" but ultimately served to help trade debt for equity, as is the goal of this current offering. What happened? Prices fell from ~6.30 to around 4.95. It wasn't a week after I bought my shares at 5.18 that the price broke the 6.00 mark again.
Not only will these new shares help Ford out, but this could be a solid buying opportunity if prices dip enough. I cannot speculate as to how much they will go down because the common share offerings haven't been formally announced yet.
A few other things Mulally is saying:
"June sales are already on pace to improve from May's results."
"We are very rapidly moving on our plan to improve the balance sheet. Going forward, we will really accelerate that as we return to profitability and start repairing the balance sheet even more."
"...On track to break even or post a profit on a pre-tax basis in 2011"
Here are some links:
http://finance.yahoo.com/news/Mulall...2866.html?.v=4
http://www.reuters.com/article/marke...0090611?rpc=44
Last edited by East87; 06-11-2009 at 02:27 PM.
06-11-2009, 03:16 PM
#17
1st Gear Member
Thread Starter
Join Date: Sep 2006
Posts: 86
****EDIT****
Nevermind! Ford will not be issuing any additional common stock for now.
http://finance.yahoo.com/news/Ford-S...3701.html?.v=1
The post below is still correct in principle, but again, there will be no immanent issuance of common shares!
****/EDIT****
For anyone interested and wondering, there might be a solid opportunity to get into the market with Ford. CEO Alan Mulally has stated today that Ford might issue more common stock to trade debt for equity, basically to raise money through the purchase of common stock from investors like you and me to offset the billions it holds in debt.
The overall (and often temporary) effect this has is to diminish the price of common shares because the share volume is suddenly diluted. Prices fall because each share represents a smaller slice of company ownership, and therefore, not worth the price per share before the addition of stock. However, as demand increases (because prices are lower), prices pick back up, especially since this is an active step to reduce debt.
2-3 days before I bought my 470 Ford shares, Mulally announced the issuance of a few hundred million shares (345 million to be exact) in what was deemed "a show of strength" but ultimately served to help trade debt for equity, as is the goal of this current offering. What happened? Prices fell from ~6.30 to around 4.95. It wasn't a week after I bought my shares at 5.18 that the price broke the 6.00 mark again.
Not only will these new shares help Ford out, but this could be a solid buying opportunity if prices dip enough. I cannot speculate as to how much they will go down because the common share offerings haven't been formally announced yet.
A few other things Mulally is saying:
"June sales are already on pace to improve from May's results."
"We are very rapidly moving on our plan to improve the balance sheet. Going forward, we will really accelerate that as we return to profitability and start repairing the balance sheet even more."
"...On track to break even or post a profit on a pre-tax basis in 2011"
Here are some links:
http://finance.yahoo.com/news/Mulall...2866.html?.v=4
http://www.reuters.com/article/marke...0090611?rpc=44
Nevermind! Ford will not be issuing any additional common stock for now.
http://finance.yahoo.com/news/Ford-S...3701.html?.v=1
The post below is still correct in principle, but again, there will be no immanent issuance of common shares!
****/EDIT****
For anyone interested and wondering, there might be a solid opportunity to get into the market with Ford. CEO Alan Mulally has stated today that Ford might issue more common stock to trade debt for equity, basically to raise money through the purchase of common stock from investors like you and me to offset the billions it holds in debt.
The overall (and often temporary) effect this has is to diminish the price of common shares because the share volume is suddenly diluted. Prices fall because each share represents a smaller slice of company ownership, and therefore, not worth the price per share before the addition of stock. However, as demand increases (because prices are lower), prices pick back up, especially since this is an active step to reduce debt.
2-3 days before I bought my 470 Ford shares, Mulally announced the issuance of a few hundred million shares (345 million to be exact) in what was deemed "a show of strength" but ultimately served to help trade debt for equity, as is the goal of this current offering. What happened? Prices fell from ~6.30 to around 4.95. It wasn't a week after I bought my shares at 5.18 that the price broke the 6.00 mark again.
Not only will these new shares help Ford out, but this could be a solid buying opportunity if prices dip enough. I cannot speculate as to how much they will go down because the common share offerings haven't been formally announced yet.
A few other things Mulally is saying:
"June sales are already on pace to improve from May's results."
"We are very rapidly moving on our plan to improve the balance sheet. Going forward, we will really accelerate that as we return to profitability and start repairing the balance sheet even more."
"...On track to break even or post a profit on a pre-tax basis in 2011"
Here are some links:
http://finance.yahoo.com/news/Mulall...2866.html?.v=4
http://www.reuters.com/article/marke...0090611?rpc=44
06-11-2009, 05:15 PM
#18
6th Gear Member
Join Date: Sep 2006
Location: Gainesville, FL
Posts: 11,278
I wouldn't buy it and here is why, look at the political situation we are in, we have way more stringent CAFE standards going into place, which means all the car makers are going to have to make smaller lighter cars, the only way the american car companies do well is by making larger cars, SUV's and maybe some muscle cars, they will not be able to do that with obama's CAFE standards, you can kiss cars like the mustang goodbye, forget about a SUV, this really stacks the deck in favor of the jap and korean cars, as we can't make small cars with the same quality and same profit margin as they can. its troubling times we are headed for
The stock market is a giant pyramid scheme.
06-11-2009, 06:16 PM
#19
4th Gear Member
Join Date: Oct 2007
Location: FL
Posts: 1,533
I bought a lot of stock when it was under $2 so I have already made a good profit but as far as $7 a share I am sure it will be going up more over the next year so now might be the last chance you have to get in while it is still semi reasonable
06-11-2009, 07:49 PM
#20
2nd Gear Member
Join Date: May 2008
Posts: 463
This is a great post guys!!
I'm 22 years old and i would like to invest some of my money!!
How do i go about to start buying stock??
With GM and Chrysler going down the drain i'm thinking people will turn to Ford and their stock prices will shoot up in the coming year!!
I'd like to get a piece of that!!
I'm 22 years old and i would like to invest some of my money!!
How do i go about to start buying stock??
With GM and Chrysler going down the drain i'm thinking people will turn to Ford and their stock prices will shoot up in the coming year!!
I'd like to get a piece of that!!
