Is Ford A Good Buy?
I’ve posted several times regarding the auto industry here in Michigan. Since then, we have seen GM and Chrysler receive some federal money to try to keep them afloat.
Ford Motor Company appeared to shy away from federal dollars and put up a good front that they had everything under control…we don’t need any bailout money.
Based on this, I’ve had friends invest significant dollars into Ford Stock. They believe that by Ford not taking any federal money, they are proving that their company is in good shape and on a smooth path for future profitability. I DO NOT BELIEVE THIS TO BE TRUE! Here is why…
I believe that Ford has taken a “calculated risk” in deciding to put their best foot forward to the general auto buying public. Ford is trying to convince us that they are operating “business as usual”…”no need to worry here”…”Come buy cars from us, we will be around to honor warranties!” I DON’T BUY IT. The public records that make their income statement and balance sheet open to observation lead me to believe that Ford is in a world of hurt, just like the other guys.
My point is to look hard and do your own research before investing into individual companies. The last 6 months have proved that his can be risky business!
If you enjoyed this post, make sure you subscribe to my RSS feed!
January 14th, 2009 at 8:33 pm
You need to look into the company balance sheets before investing. As a car enthusiast i can say that Ford is not all that bad as GM financially but I would not recommend you to buy it.
Car Blogs last blog post..Component Upgrade For The Yamaha R15
[Reply]
January 14th, 2009 at 8:36 pm
Come to think of it even Honda, Kawasaki is feeling the pinch of the recession so obviously Ford must be totally going down. Both have withdrawn from Motorsports.
Make Money Online Tipss last blog post..Earn An Income & Make Money Online
[Reply]
January 15th, 2009 at 3:29 am
I think you’ve hit the nail on the head. Just by them saying “hey, it’s cool, we’re fine” means that they are trying to hide something. Only time will tell what that something is.
[Reply]
January 15th, 2009 at 4:27 pm
IT sector is down, Auto sector is down. Infrastructure is the best bet currently.
Make Money Online Tipss last blog post..Guide To Start Blogging
[Reply]
January 16th, 2009 at 4:45 pm
I guess I just assumed that they were in fact in better shape than the other 2, but you make a compelling point.
With largely the same contractual regulations/rigidities as Chrysler and GM, I don’t see how they could be too much better off than their counterparts.
I don’t think I would plop anything down on Ford unless it was highly speculative money that I was prepared to lose.
Blakes last blog post..Let’s Restore Some of Money’s Value
[Reply]
January 16th, 2009 at 4:48 pm
“IT sector is down, Auto sector is down. Infrastructure is the best bet currently.”
I sorta disagree. Infrastructure looks somewhat attractive, but energy has the most upside with very little downside, imvho. At the first sign of economic recovery, oil will skyrocket, bringing energy shares with it. Vanguard Energy (VDE) is how I’m playing this.
Blakes last blog post..Let’s Restore Some of Money’s Value
[Reply]
January 18th, 2009 at 5:15 am
My father worked for Ford for 30 years, so I hope they make it. I have always purchased Ford vehicles and will continue to do so. Unfortunately, right before the holidays our lease was up on our car so we contacted several dealerships looking for a new vehicle. The deals were really bad which shocked me given the shape of the auto industry. Then they told us Ford Credit’s best interest rate was over 10%. I don’t know how the auto companies can make it until the banks open things up to them again.
pfincomes last blog post..Make Money Online from Creative Writing
[Reply]
January 18th, 2009 at 4:03 pm
My family is a ford family too. Grandpa and several aunts and uncles worked or still work there. I just bought a 2009 Ford Focus and I have a credit score near 800 and my rate was 8.99% I was shocked, but I took the deal because it got me some extra rebates, then I paid it off a month later with my Home Equity Line of Credit which is currently at 4.25%. I agree with ya, I just don’t know how they are going to make it. Thanks for stopping by the blog. I’m on my way to yours now!
Almost Millionaires last blog post..The 7 Habits of Marginally Successful People
[Reply]
April 2nd, 2009 at 2:16 pm
Ford is a good car
[Reply]
July 17th, 2009 at 4:59 am
Great website you have here. Have you tried using movable version? I wanted to know why you would prefer wordpress over movable version as I heard it has some pros and cons
[Reply]
August 12th, 2009 at 3:53 pm
You ever tried Typepad mate? Why do you prefer wordpress out of Typepad?
[Reply]
September 17th, 2009 at 4:26 am
love the site
[Reply]
November 5th, 2009 at 3:16 pm
I have Honda Accord. I want to buy new luxury car. What shall I go for VOLVO S80, BMW 5 SERIES OR MERCEDES E CLASS?
[Reply]
May 24th, 2010 at 7:34 am
Fail, Ford has gone up around $9 since this aricle was written. I wish I had money because I would have put it all into Bank of America, Ford and Apple. Ford was a good buy and is still a good buy. They will have success in the future.
[Reply]
June 14th, 2010 at 11:41 am
3 secrets for getting other people to create your products for you. Follow these guidelines, and you
[Reply]