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Ford: Never give up on the good guys!

I've owned quite a number of cars made by the Ford Motor Company (NYSE:F) over time and they've all been good ones. I had a 1968 Galaxy which was as beautiful as it was a joy to drive. I've had several F-150's and there wasn't a loser in the bunch. My wife had an Escort which gave us a quarter million miles. If we had put new tires and front wheel bearings on it, I think we would have gotten another 50 thousand good miles from it, possibly more. It was a good, stout little ride. My wife still misses that car.

The reason I'm writing about Ford is to address a simple question. Why has Ford stock taken such a sound thrashing over the last two years? In 2004, Ford stock was happily playing around in the range of $12 to $16 a share. In 2005, a steady decline began. Ford shares had started '05 just in range of $14 but ended the year near a miserable $8 a share. The picture has not improved for 2006. After dipping as low as $6.06 this year, a bit of recovery has occurred, however unsatisfactory. Ford shares have nipped at $9.50 within the last 52 weeks but they rest at an uncomfortable $8.18 at the end of yesterday's trading. I've looked and searched and asked around. No one has provided a truly solid answer to my simple question of why Ford shares been beaten down so badly.

If no one can provide me sound reason why Ford stock is performing so poorly, then there's only one thing I can do. I must paint you a picture of why Ford's stock deserves better treatment, so here it is from me to you.

Ford never gave up on the fact that America loves a full size, heavyweight, luxury car. Did you know that you can order a fully equipped, V-8, rear wheel drive, 2007 Crown Victoria for under $29,000? If you put one of these beauties on the road, Kia's, Toyota's and Nissan's still tremble. It's been that way for a long time. It will be that way for a long time to come.

Then there are the F series trucks. I've owned more than a couple. As good as any on the road and better than most, has always been my opinion. I'd own a Ford truck right now if I didn't get such a good deal from my brother on my Chevy. I am especially pleased with the changes in the design appearance that Ford has accomplished with their trucks. American truck makers didn't take long to figure out that we like trucks that look like trucks. We buy our pickup trucks for working. They had better look ready to work. Save those sloped front ends for the minivans. Soccer moms seem to like 'em.

I am especially impressed with Ford's 2007 Escape hybrid. This fiery little puppy will deliver you an estimated 36 miles per gallon in city driving! I knew it could be done and Ford did it. Now you may understand why OPEC has lost so much power. Threaten us with oil production cuts? Fine, we'll use less then... thanks. Send our regards to Osama. We'll call him when the hot dogs are ready.

The best reason I can think of why any stock value should be well respected is encompassed in one term these days. For me, that term is diversification. In case you aren't aware of how diverse Ford is, let me give you a basic course in Ford Motor Company auto marketing perspective. Ford Motor Company has strategically positioned itself to be readily available to virtually any sector of the consumer motor vehicle market. They have covered so much ground by acquisition that I think they have greatly outpaced the public awareness about them.

Ford Motor Company's holdings include at least partial or past interest in: Aston Martin, Daimler, Jaguar, Land Rover, Lincoln, Mazda, Mercury, Volvo and Ford Credit. Ford also supplies chassis for buss manufacturers and Ford is deeply involved in numerous racing projects.

When comparing Ford Motor Company with other long term American manufacturers, I have to say that Ford has kept up with the best of them. I am at a loss to give a good justification for why their stock value has been beaten down so badly over the last two years. You will need to do deeper research than I have in order to come up with a viable analysis of their corporate condition, but at the level of commercial presentation, for me Ford has always and still does pass the test.

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Last updated: November 10, 2009: 11:02 AM

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