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Barclays downgrades Ford (F) to Equal Weight from Overweight on a valuation call. F -0.3% premarket.
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Friday, January 25, 6:50 AM ETBarclays downgrades Ford (F) to Equal Weight from Overweight on a valuation call. F -0.3% premarket.
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Some folks will take it as a time to sell off, when the appropriate action is probably to hold, neither buying nor selling. Nothing wrong with that.
Ford has a dividend payment worth about 0.7%, payable to shareholders based on their holdings on January 30th, so it makes sense to at least hold shares until then, buying more if the price is right.
But the fact is, that 62% run-up represents a strong temptation to sell, at least for those that bought at under $10, if the opportunity presents, as the profits thereof would dwarf the 10-cent dividend.
One cannot rule out a significant selloff of Ford shares once the dividend payment amount is locked in on Jan 30th. That hypothetical sell-down could be fast and dirty, or it might be slow and steady into the summer, before rallying again in the fall.
Of course this has nothing at all to do with Ford's business fundamentals. It is all just 'noise' as investors jostle each other for positions to try to maximize their profits.
I'm equal weight already.
Get in line.