Seeking Alpha

Good month for Ford in the U.K.

  • The Society of Motor Manufacturers and Traders reports auto sales in the U.K. rose 3% to 68,376 units in February.
  • The U.K. has now strung together 24 straight months of increasing new car sales.
  • The top seller for the month in the region was the Ford Fiesta (F) with 4,415 units, while the Ford Focus took 4th place with 2,566 units.
Comments (7)
  • name999
    , contributor
    Comments (121) | Send Message
     
    Getting out of trouble in Europe is a great news to Ford. Combining the strong position in North America and great growth in Asia plus a mediocre South America. The current price of Ford stock shows Ford is undervalued. Ford should be given more attention.

     

    One X factor is the revolution in the car control panel now. Ford just made the announcement of switching to BBY's QNX for the next generation Sync system while joining the rollout of the Apple Carplay. Hope they can come out some good results.
    6 Mar, 03:46 PM Reply Like
  • ted lujan
    , contributor
    Comments (517) | Send Message
     
    Combine gains in the UK with 67% gain in auto sales for China last month and it is making my head spin. I think we have a real winner!
    6 Mar, 04:48 PM Reply Like
  • rustypep
    , contributor
    Comments (3) | Send Message
     
    There is a lot of buzz on GM lately but I am sticking with Ford here.
    6 Mar, 09:28 PM Reply Like
  • jwaldie
    , contributor
    Comment (1) | Send Message
     
    They need a large stock buy back to get out of this rut
    7 Mar, 10:27 AM Reply Like
  • Tdot
    , contributor
    Comments (3449) | Send Message
     
    "They need a large stock buy back to get out of this rut"

     

    Using what? A credit card?

     

    Ford's net cash after debts and obligations is essentially zero. Which means they would have to borrow more money and increase the debt to buy back shares. Which means shareholder equity goes negative, and the price plummets. And the Company is at risk of bankruptcy again.

     

    Do you remember what happened last time Ford went deeply into debt? That's right, the Share price collapsed and bounced on a $1 floor. Almost got them de-listed from the NYSE.

     

    Fail.

     

    If and when Ford has, say, $50B in free cash and no remaining debts or obligations, then they could probably afford to spend half of that in buying back about 20% of the shares at a (then) projected $30 per share market, bumping the price up 20% to $36 when the dust settles. And then maybe they could afford to do it again 2-3 years later.
    7 Mar, 01:28 PM Reply Like
  • ted lujan
    , contributor
    Comments (517) | Send Message
     
    At this point in time if it is not as important as when they were on the ropes and taking a bad beating, until Allan came along. Debt is not that bad if it is used properly to expand the business. Fords credit rating is very good so they can get some good rates.
    A very happy stock holder. Go Ford
    7 Mar, 04:59 PM Reply Like
  • Tradevestor
    , contributor
    Comments (4014) | Send Message
     
    Overall positive Feb for Ford http://seekingalpha.co...
    10 Mar, 11:50 AM Reply Like
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