Join Early Retirement Today
Reply
 
Thread Tools Display Modes
What about Ford now?
Old 01-26-2009, 11:46 AM   #1
Moderator Emeritus
laurence's Avatar
 
Join Date: Feb 2005
Location: San Diego
Posts: 5,267
What about Ford now?

I understand that Ford has the best chance of the three to make it through this unscathed, and is least likely to have it's shareholder equity wiped out. Would you consider Ford a buy under $2/share?

I'm debating between buying GE and Ford with my play/testosterone account. I have about $8,700 to play with and it's money I'd hate to but ultimately can afford to lose (i.e, this is not my 401k or my emergency fund etc.). Thoughts?
laurence is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 01-26-2009, 12:36 PM   #2
Thinks s/he gets paid by the post
Coach's Avatar
 
Join Date: Nov 2005
Location: Colorado, USA
Posts: 1,127
Imagine, a couple of thousand shares of F and half your play account still available! I do understand your temptation. I couldn't resist GM at 6.30 and bought 200 shares. The first individual stock I've bought in 10 years or so.

Coach
Coach is offline   Reply With Quote
Old 01-26-2009, 02:04 PM   #3
Thinks s/he gets paid by the post
jIMOh's Avatar
 
Join Date: Apr 2007
Location: west bloomfield MI
Posts: 2,223
Yes, I think Ford can emerge.
But just because they emerge does not make them a good investment. They still cannot build a car worth $h!t.
__________________
Light travels faster than sound. That is why some people appear bright until you hear them speak. One person's stupidity is another person's job security.
jIMOh is offline   Reply With Quote
Old 01-26-2009, 02:47 PM   #4
Thinks s/he gets paid by the post
 
Join Date: Sep 2006
Posts: 2,840
Having worked with Ford on several financial and quality issues I would think GE is a better alternative.

However if you want to take a flyer on a company I would reccomend MLAB instead. Nice small quickly growing company with real upside that pays a dividend that is growing nicely. 60 million dollar company market cap with nice product line rated very nicely in Value Line small cap and good looking financials from what I viewed this weekend in research. I prefer not to lose any money if possible.
__________________
But then what do I really know?

https://www.early-retirement.org/forums/f44/why-i-believe-we-are-about-to-embark-on-a-historic-bull-market-run-101268.html
Running_Man is offline   Reply With Quote
Old 01-26-2009, 02:55 PM   #5
Full time employment: Posting here.
ProspectiveBum's Avatar
 
Join Date: Sep 2006
Location: SoCal
Posts: 927
As a rule, I don't buy individual stocks, but I bought a little over a thousand shares of Ford on Friday @ $1.86. I'm a car enthusiast, and Ford looks to have some good product coming down the pipeline. Their recent quality scores have improved a lot, and their bread-and-butter vehicle, the F150 pickup truck, has been redesigned and looks like a winner. They've also got a new small car coming (the European Fiesta), a redesigned Taurus, and an updated Mustang that is supposed to be quite a bit better than the last iteration.

I'm not expecting a quick jump in the stock price, but over the long-term, I think they'll rebound significantly. If not, I'm only out a couple of grand.
__________________
I can't complain, but sometimes I still do.
- Joe Walsh
ProspectiveBum is offline   Reply With Quote
Old 01-26-2009, 02:57 PM   #6
Thinks s/he gets paid by the post
 
Join Date: Jun 2006
Posts: 2,068
I have no doubt Ford will continue as a company.
However, I have a fair amount of concern that any common stock holders will get wiped out. Given the choice of GE or F, I would go with GE.
Given the choice of F or GM, I would go with F.
__________________
"We do not inherit the earth from our ancestors, we borrow it from our children.
(Ancient Indian Proverb)"
Zathras is offline   Reply With Quote
Old 01-26-2009, 04:42 PM   #7
Thinks s/he gets paid by the post
73ss454's Avatar
 
Join Date: Oct 2004
Location: LaLa Land
Posts: 4,693
What about the dividend between the 2 of them. GE is about 9% right now and F is 0.
73ss454 is offline   Reply With Quote
Old 01-26-2009, 05:20 PM   #8
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
FinanceDude's Avatar
 
Join Date: Aug 2006
Posts: 12,483
Quote:
Originally Posted by 73ss454 View Post
What about the dividend between the 2 of them. GE is about 9% right now and F is 0.
Are really debating which is the better value play now?

One has a failed business model, and one is having a rough patch.......
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)


This Thread is USELESS without pics.........:)
FinanceDude is offline   Reply With Quote
Old 01-26-2009, 06:15 PM   #9
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2006
Posts: 11,401
Laurence, if you want to invest in the auto industry, what about auto parts manufacturers? There will be a lot of OLD cars on the road for the next little while.
Meadbh is offline   Reply With Quote
Old 01-26-2009, 10:30 PM   #10
Moderator Emeritus
laurence's Avatar
 
Join Date: Feb 2005
Location: San Diego
Posts: 5,267
Quote:
Originally Posted by 73ss454 View Post
What about the dividend between the 2 of them. GE is about 9% right now and F is 0.
Can someone expand on this? Will they cut this? Did I just ask someone to look into a crystal ball?

If I can get a 9% dividend, I think that just added a lot of clarity to my decision.
laurence is offline   Reply With Quote
Old 01-27-2009, 12:31 AM   #11
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
NW-Bound's Avatar
 
Join Date: Jul 2008
Posts: 35,712
Quote:
Originally Posted by Meadbh View Post
Laurence, if you want to invest in the auto industry, what about auto parts manufacturers? There will be a lot of OLD cars on the road for the next little while.
Yeah, like tire and battery makers for example.

While the car makers and financial companies get all the press coverage due to the bailouts that they requested, there are so many other companies in other sectors that are also beaten down bad and can survive with no bailouts. The latter group interests me more. I'd rather do my bottom fishing there.

In any event, sprinkle your money around. Nothing hurts more than when the economy recovers, the market is going up but your single choice stock is left in the mud to die. Why buy just one beaten down stock if you can diversify among several?
NW-Bound is offline   Reply With Quote
Old 01-27-2009, 08:12 AM   #12
Thinks s/he gets paid by the post
73ss454's Avatar
 
Join Date: Oct 2004
Location: LaLa Land
Posts: 4,693
Quote:
Originally Posted by laurence View Post
Can someone expand on this? Will they cut this? Did I just ask someone to look into a crystal ball?

If I can get a 9% dividend, I think that just added a lot of clarity to my decision.
GE said that they won't cut the dividend this year but who knows. Bush#1 also said no new taxes so take it with a grain of salt. The dividend is a bit high so I wouldn't doubt if it gets cut but it'll still be better than Ford with 0.

Unless the share price rises I would think a dividend cut is in the cards at some point.
73ss454 is offline   Reply With Quote
Old 01-27-2009, 09:53 AM   #13
Thinks s/he gets paid by the post
 
Join Date: Sep 2006
Posts: 2,840
Like most of what Berkshire Hathaway has purchased in the last 12 months you can get GE, one of their selections for less than Warren Buffet. At least if it went to zero you'd always have that in your defense. And you'll get a 2.25% refund of your purchase quarterly for a while anyway.
__________________
But then what do I really know?

https://www.early-retirement.org/forums/f44/why-i-believe-we-are-about-to-embark-on-a-historic-bull-market-run-101268.html
Running_Man is offline   Reply With Quote
Old 01-27-2009, 11:37 AM   #14
Moderator Emeritus
laurence's Avatar
 
Join Date: Feb 2005
Location: San Diego
Posts: 5,267
I'll take a dividend of half that and be happy.

NW-Bound, I hear ya, but over 90% of my portfolio is in a "4 pillars" alignment, so I won't feel too bad.

Of course, now it's trading above $13, why that seems pricey I don't know but it's thrown water on my "trading" fire.
laurence is offline   Reply With Quote
Old 01-27-2009, 11:44 AM   #15
Thinks s/he gets paid by the post
 
Join Date: Sep 2006
Posts: 2,840
Bond Profile - Yahoo! Finance Bond Center

I would think Ford debt would be more interesting than the stock
__________________
But then what do I really know?

https://www.early-retirement.org/forums/f44/why-i-believe-we-are-about-to-embark-on-a-historic-bull-market-run-101268.html
Running_Man is offline   Reply With Quote
Old 01-27-2009, 11:54 AM   #16
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
ziggy29's Avatar
 
Join Date: Oct 2005
Location: North Oregon Coast
Posts: 16,483
Quote:
Originally Posted by Running_Man View Post
I would think Ford debt would be more interesting than the stock
And who knows? The Ford bondholders of today could be the Ford stockholders of the future. Though that would seem more likely with GM at this point...
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)
ziggy29 is offline   Reply With Quote
Old 01-27-2009, 03:15 PM   #17
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Koolau's Avatar
 
Join Date: Jul 2008
Location: Leeward Oahu
Posts: 17,707
My idea of an "investment" in ford would be to buy a clapped out Taurus for $400, drive it when I have to take the H-1 freeway and scrap it when it won't go anymore. Rinse, repeat and, oh yes! YMMV
__________________
Ko'olau's Law -

Anything which can be used can be misused. Anything which can be misused will be.
Koolau is offline   Reply With Quote
Old 01-27-2009, 04:39 PM   #18
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
clifp's Avatar
 
Join Date: Oct 2006
Posts: 7,733
According to the balance sheet the total shareholder equity of Ford is a negative -2 billion. Meaning the company is technically insolvent. (GM is in far far worse shape). Or to put it another way each shareholder of Ford owes approximately $1 dollar to the creditors.

In contrast GE has 111 Billion worth of shareholder equity, made 4 billion last quarter and 18 billion last year. The huge unknown for GE is how much of the massive loans that GE capital has outstanding are going to be paid back.
clifp is offline   Reply With Quote
Old 01-30-2009, 11:43 AM   #19
Recycles dryer sheets
 
Join Date: May 2006
Posts: 230
Quote:
Originally Posted by clifp View Post
In contrast GE has 111 Billion worth of shareholder equity, made 4 billion last quarter and 18 billion last year.
And approximately $100B of that $111B is intangible. So, some would note that is $10B of tangible equity with $550B in debt.
terminator is offline   Reply With Quote
Old 01-30-2009, 01:04 PM   #20
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
FinanceDude's Avatar
 
Join Date: Aug 2006
Posts: 12,483
Quote:
Originally Posted by terminator View Post
And approximately $100B of that $111B is intangible. So, some would note that is $10B of tangible equity with $550B in debt.
How much tangible equity does Ford have?? Are you including brand valuation as tangible equity? I think most folks think the word "GE" denotes higher quality than the blue oval with the "Ford" on it.......
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)


This Thread is USELESS without pics.........:)
FinanceDude is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
"74 Ford F-100 Pick-up Value? two4theroad Other topics 6 08-06-2008 09:14 AM
How to put a '91 Ford Explorer in 4WD? WM Other topics 9 08-16-2007 12:01 PM
A Ford Retiree theoldwizard Hi, I am... 18 06-07-2007 06:45 AM
Former President Ford dies at 93 califdreamer Other topics 30 12-29-2006 04:45 PM
Ford Motor Health Care Marketneutral FIRE and Money 43 12-17-2005 06:27 PM

» Quick Links

 
All times are GMT -6. The time now is 08:44 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.