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Investors bullish on Ford (F) have a strong case to make, writes Barron's Jay Palmer, as the...

Investors bullish on Ford (F) have a strong case to make, writes Barron's Jay Palmer, as the company has "become an earnings powerhouse, and any uptick in auto sales will only reinforce its gains." The stock, which closed at $12.77 on Friday, could hit $20 in the next twelve months.
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Comments (2)
  • positivethoughts
    , contributor
    Comments (2011) | Send Message
     
    I don't think one can ever be that confident in an industry that has razor-thin margins and a huge union aspect to their operations.

     

    Ford lost 6 times the amount of money in 2006 (12.6B) as they earned in 2005 (2B), and then had a loss in 2007 (2B) and a massive loss in 2008 (14.7B). I realize the financial crisis hit in September of 2008, but even if you took out 50% of that net income loss, it still would amount to a massive loss.

     

    I am not saying that continuing good news won't push the stock to $20, and at the current ratios, ford is a good value, but for investors who are used to stocks such as Canadian banks or multinational food companies, each of which show consistent earnings, a North American car company with the potential for such huge labour issues going forward is not what I would call a sure thing.
    1 Aug 2010, 04:01 PM Reply Like
  • Rickthegeek
    , contributor
    Comments (118) | Send Message
     
    Ford is overdone as well as Apple. The problem is you have television personalities like Jim Cramer on Mad Money, almost on a daily basis promoting these two companies. Kind of makes you wonder what they are paying him to continually promote them. Both F and AAPL are overbought.
    1 Aug 2010, 07:26 PM Reply Like
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