At 10:48 AM EST today I sold all my shares of Ford for $12.25, booking an 11% gain in less than 6 months. I had bought 1/4 of my target position in Ford on 9/6/2012 at 10 per share, I added another 1/4 of my target on 10/26/2011 at 12.
I decided to sell after F released its quarterly information. I am concerned about the company’s higher commodity costs and its most recent 34% profit miss.
Ford Motor Co. (NYSE:F – News) posted a 34% fall in profit to $797 million or 20 cents per share (before special items) in the fourth quarter of 2011 from $1.20 billion or 30 cents per share (before special items) in the same quarter of 2010. The concensus estimate was $0.25 per share.
Ford lost money in Europe and Asia in the fourth quarter, and profits fell in South America.
Ford’s rival General Motors Co. is also expected to be hurt by weak results in Europe when it reports its earnings Feb. 16. I expect to see further selling in Ford if indeed GM reports a bad quarter.
I have no immediate plans to bring F back into my holdings.