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Barclays downgrades Ford (F) to Equal Weight from Overweight on a valuation call. F -0.3% premarket.

Barclays downgrades Ford (F) to Equal Weight from Overweight on a valuation call. F -0.3% premarket.
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Comments (10)
  • mitchjl
    , contributor
    Comments (268) | Send Message
     
    There downgrade means nothing to me and holding for $18.00 +. I love the dividend while waiting.
    25 Jan 2013, 09:38 AM Reply Like
  • moran
    , contributor
    Comments (214) | Send Message
     
    Yeh mitchjl...I don't get it...There has been nothing but great news on F the last couple months and then suddenly DB and Barclays come out with a downgrade...I'm a bit suspicious of these guys....
    25 Jan 2013, 09:47 AM Reply Like
  • Tdot
    , contributor
    Comments (4014) | Send Message
     
    Any time you see a run-up in share price, as in the case of Ford (from $8.82 to $14.30, for a whopping 62% in about 24 weeks, it becomes a time of extreme caution when the price does then bounce off a ceiling and level off, as it seems to be doing now.

     

    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.
    26 Jan 2013, 11:30 AM Reply Like
  • vallies
    , contributor
    Comments (351) | Send Message
     
    Barclays sold a key part of their business to who, BLK. BLK is doing very well because of this. Larry Fink has some very bullish comments about this sector as does David Tepper. Tepper has also very bullish things to say about C. I wonder what Barclay might say about C. I own F and would love a solid pullback to add to it. Some times you can do very well in downgrades from this. Many times the ups and downs ahead of a earnings report is just to say we told you so, and if the stock does well, they cover it with an upgrade down the road. You should listen to Tdot before you listen to Barclays.
    25 Jan 2013, 09:49 AM Reply Like
  • EdwinJ44
    , contributor
    Comments (60) | Send Message
     
    Personally, I thank them for the downgrades. It's giving me another opportunity to buy more at a reduced price. Plus I will enjoy the dividends while I wait. ( I think someone already said that...)
    25 Jan 2013, 11:24 AM Reply Like
  • TwistTie
    , contributor
    Comments (2476) | Send Message
     
    Equal weight is a fair call.

     

    I'm equal weight already.

     

    Get in line.
    25 Jan 2013, 11:54 AM Reply Like
  • Eease1
    , contributor
    Comments (2) | Send Message
     
    With lower than expected sales in Asia and Europe showing some staying power it will really depend on what the North American market will do this year. I still think it is a great buy but I think won't see $19 until 2014.
    25 Jan 2013, 03:50 PM Reply Like
  • Eease1
    , contributor
    Comments (2) | Send Message
     
    As Ford has produced lower than expected earnings in Asia and Europe is on a maintaining level, it will be dependent on the North American as to its prospects. Looking forward, a $19 target price is within 2014.
    25 Jan 2013, 03:50 PM Reply Like
  • angelobuttigieg
    , contributor
    Comments (107) | Send Message
     
    I expect great news out of F on 1/29 morning, so screw DB and Barclays.
    25 Jan 2013, 08:20 PM Reply Like
  • moran
    , contributor
    Comments (214) | Send Message
     
    F has great products, especially now. I will remain long.
    28 Jan 2013, 06:43 PM Reply Like
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