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Ford Shares Establish L/T Uptrend

|Includes:Ford Motor Company (F)

On August 21, I posted a note that looked at the price trend for Ford (NYSE:F). At that time it appeared that a positive price trend was emerging. This note updates that one:

TREND:

In the past several weeks, F has established a solid short term as well as long term uptrend. Given the market's and this stock's volatility, F currently trades at a discount to the recently established trendline. In other words, purchasing F at last night's closing price (10.05) represents an attractive entry point to participate in the newly established trend.

LIQUIDITY:

Based on a review of the past several months of trading data, investors (both holders of F shares as well as new purchasers) are showing greater buying interest on price declines than selling interest on price increases. Further, the extent of this difference has recently improved.

Further, based on other proprietary measures, it appears that this situation will persist for a while.

VALUATION:

During the past 30 day's, several analysts have raised their estimates for Ford's EPS for the current year, as well as next fiscal year. There have been no estimate decreases in the past 30 days, as reported in Yahoo Finance.

RISK MANAGEMENT:

For those interested in a market neutral approach, my recent estimate of F's beta vs. the S&P 500 is .89.

Disclosure: I am long F.

Additional disclosure: F is included in the Model Portfolio for a market neutral, trends-based newsletter that I publish and which is available to interested members of the public.

Stocks: F