Seeking Alpha

Reaction to Ford's business update

  • Ford's (F -7.2%) business update could prompt a rotation of investor funds out of the blue oval to General Motors (GM -3.4%), advises Buckingham Research.
  • Despite the automaker's many improvements amid a booming U.S. auto sector, it's clear analysts got ahead of themselves with their rosy projections on Ford and will now have to reset.
  • There's nothing official from Detroit, but the chatter flowing out of the Ford event is that CEO Mulally will stay on.
  • Sector watch: Though GM is down on the day, Japanese automaker are holding up just fine: Toyota (TM) +1.0%, Honda (HMC) +2.6%, and Nissan (NSANY) +2.6% in OTC trading.
Comments (7)
  • Mr Mullaly better stay on or Ford will go back to its old ways, turning the compnay over to Ford past executives will just bring the past back to the future!
    18 Dec 2013, 10:57 AM Reply Like
  • "Delusional Panic Over Ford's Newly Issued 2013 And 2014 Outlook Makes It A Buying Opportunity"

     

    http://seekingalpha.co...
    18 Dec 2013, 11:17 AM Reply Like
  • With investor reaction, I thought Mullaly passed in his sleep last night. Well the good news is he did not, but he has work to do.
    18 Dec 2013, 12:41 PM Reply Like
  • TM up 1%......true, but its been on a 6 week tail spin
    18 Dec 2013, 01:15 PM Reply Like
  • Heard on CNBC this morning that F is having some setbacks with the new F150, re aluminum parts and that they will not be showing it off at the Detroit Auto show. That model is F's bread and butter. On a positive note, I don't believe Mullaly will leave F now. He seems to be the type that cares more about his legacy than a higher salary. But that's a total supposition on my part, since I don't know the man from Adam.
    18 Dec 2013, 02:00 PM Reply Like
  • GM and Ford are both down a chunk from the uncertainty following tapering which would have an impact on their revenues due to interest increases. Most cars are long term finance now a days not to mention the repercussion it will have on any upcoming debt or variable interest agreements.

     

    Ford in addition had the common sense to lower expectations now before they became too far beyond reaching. I expect that we will still see a strong overall performance for the company and likely a dividend increase in 2014. The news in this update was far from bad and I think the impact of the statements was compounded by timing with the FED tapering issue (which has left the market somewhat tense today, unless I'm missing some other big news).

     

    Ford has always been analyzed a little high I think but I see it being fair value around 18 currently and 20 sometime next year. I don't have metrics to back these up but if you look through the numbers and do some comparisons for your own dd I don't think you'll find them that off skew. Mind you these are numbers I believe people will be actively trading at next year.

     

    I'm long $F and generally bullish on car stocks at the moment. Don't own any of the others as of today.
    18 Dec 2013, 03:11 PM Reply Like
  • Ford will hire more, sales will level, pay will increase. They will be unable to raise prices on their vehicles. Thus their profit margin will be lower. Pretty basic.
    18 Dec 2013, 09:51 PM Reply Like
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