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Dennis Costa

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  • Ford Q4 Profits Disappoint, But Full Year 2010 Profits Highest in 11 Years [View article]
    I think the pull back here is necessary even if a bit overdone as most pull backs are... especially when the last 15-20% rise is supported by momentum traders. Building a base will be good for the Stocks longer term health and support.

    Ford is ahead of the game now, after having the foresight to refinance its business in 2005, making a strategic move to finance and restructure that almost brought the company to BK in 2009.

    Instead of bankruptcy and government bailout money, the company was position to take market share from its US rivals during the year. Add Toyota's safety and resultant image hit, costing it near zero growth in 2010, and we see that Ford in taking market share, was able to remove 14.5B in debt, and become cash/debt positive. The possible result in later 2011 might well be that the company's remaining debt will achieve investment grade.
    Jan 30 11:56 AM | 1 Like Like |Link to Comment
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