What about Ford now?

[laurence]

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?

[Coach]

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

[jIMOh]

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.

[Running_Man]

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.

[ProspectiveBum]

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.

[Zathras]

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.

[73ss454]

What about the dividend between the 2 of them. GE is about 9% right now and F is 0.

[FinanceDude]

Quote:

Originally Posted by 73ss454 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.......

[Meadbh]

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.

[laurence]

Quote:

Originally Posted by 73ss454 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.

[NW-Bound]

Quote:

Originally Posted by Meadbh 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?

[73ss454]

Quote:

Originally Posted by laurence 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.

[Running_Man]

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.

[laurence]

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.

[Running_Man]

Bond Profile - Yahoo! Finance Bond Center

I would think Ford debt would be more interesting than the stock

[ziggy29]

Quote:

Originally Posted by Running_Man 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...

[Koolau]

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

[clifp]

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.

[terminator]

Quote:

Originally Posted by clifp 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.

[FinanceDude]

Quote:

Originally Posted by terminator 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.......