Ford $F seems attractive here

Discussion in 'Stock Market Forum' started by baudwalk, Jul 4, 2015.

  1. baudwalk

    baudwalk Senior Investor

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    The Greece business apparently has spooked the market, and there were a couple of down days into this holiday weekend and the Sunday referendum vote in Greece. Despite the uptick in Ford sales, the share price dropped below $14.90 or so. Oversold in my judgement, and it puts the dividend yield over 4%. The P/E seems unreasonably low compared to other auto manufacturers. I think $F should be good for $17-18 at a minimum, perhaps $20 in the longer term. Thursday's price action seemed like Christmas time to me, and I added to my $F holdings 2 minutes before the market close. Just sayin' if you look for dividend income.
     
  2. baudwalk

    baudwalk Senior Investor

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    After talking to some local $F people about the suffering stock price, I have the impression that the sales of the aluminum F-150 truck may be the culprit with a dragging anchor. After the initial pent up demand for a new model, the F-150 sales have slowed. The higher price of aluminum is pushing some truck sales to Dodge in particular. It is a matter of getting inventory under control. So I guess I'll wait a while for a new marketing plan to move product and just be content to collect the > 4% dividend. Seems like a decent opportunity to buy a blue chip on dips.

    I wouldn't buy $GM, as it's dropped below its IPO price. I haven't followed the stories on $FCAU this week, but I thought I heard rumblings about sales of some company units.
     
  3. JR Ewing

    JR Ewing Super Moderator Staff Member

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    I'm short GM and have put options on TSLA.

    I've never been a fan of the "Big 3", but if I had to choose one, it would be Ford.

    I prefer the Japanese automakers.
     
  4. baudwalk

    baudwalk Senior Investor

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    Looks the ER gave the price a push to just over $15, and the dividend yield has slipped to just under 4%. The combination of the recall of some Dodge RAM trucks and filling, somewhat, the F-150 pipeline should help the next quarter. Some analysts are setting a target of $22, but I think something around $17-18 is more realistic. If the Fed raises rates in September, that may put a damper on credit. To be continued.
     

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