I recently posted:
It took an hour and 38 minutes for Ford to drop 3.8% to my strike price of $10. Ford looks like a good buy at these prices so I’m opening my first position with 25% of my target purchased.
I’m not a car stock buyer, and never have been. I remember my grandfather passing away with some GM stock. It was all the rage since he bought the stock for a few dollars and it was worth thousands when he died. Other than that stock transaction, I have had no exposure to the automobile industry. And for good cause to. The industry has been on the highway to hell for decades.
But Ford is different. Ford still has a vision. Ford took no bailout money, but they do have a sizable debt. Ford has a Debt to Total Capital ratio of 94.85% and is among the most highly leveraged companies in the Auto & Truck Manufacturers industry. This seems to be Ford’s only major downfall. One that could be corrected with good growth numbers and a vision for the global future.
Despite Fords China August sales falling 7%, the January to August period sales were up 11% to 341,746 units, an unexpected gain. AND Ford is breaking ground for a second India plant.
More thoughts on Ford