When to buy Ford?

[Freedom56]

Normally you buy auto stocks at the bottom of a cycle not when it's coming off the peak of the cycle. 2018 is forecast to be a down year and 2019 even lower. Remember stocks trade on future earnings not past earnings.

For the record, this was my post from February 2018. Ford, GM, Toyota, and Honda were all trading higher then.

 

[bobandsherry]

For the record, this was my post from February 2018. Ford, GM, Toyota, and Honda were all trading higher then.

So ya saying it's another year before one should be tempted to jump into the automaker waters for investment?

 

[Freedom56]

So ya saying it's another year before one should be tempted to jump into the automaker waters for investment?

You need see some signs of stabilization from the supply chain before jumping into this sector. It could be months or over a year or longer. I think Honda and Toyota are better managed companies with far better products. Ford is more of a light truck company. Keep in mind that people are keeping their cars longer than in the past also. Ford is better managed than GM in my opinion.

 

[haha]

Speculating in automakers is specialized. I think that money can probably be made, but the skills needed are different from the typical buy and hold, be diversified, etc stance of most on this forum.

I have not tried this in many years, I think if one does try it, best to do so in a tax deferred or tax free account.

Ha

 

[Tiger8693]

Exiting with 2k shares today so far (1k @ 8.82, 1k @ 8.84). Have the last 3k set up at 8.85.

 

[bobandsherry]

Exiting with 2k shares today so far (1k @ 8.82, 1k @ 8.84). Have the last 3k set up at 8.85.

Must be time for me to get in then

 

[Tiger8693]

Be my guest! [emoji6]
I’m just glad to have gotten out, won’t make that mistake again.

 

[Freedom56]

Be my guest! [emoji6]
I’m just glad to have gotten out, won’t make that mistake again.

Next time consider buying bonds/notes of a company that you like. In the case of Ford, your principal would have been returned while collecting the coupon payments. The other thing you could do is sell out of money covered calls on your equity position to add to the dividend income while you wait for a recovery. For bottom fishers, it's better to write out of money puts on a stock you want to own rather than dollar cost average at current prices. That way you get the stock only if it hits your strike price, otherwise you keep the put option income.