Walmart's New Health Food Push: Is It Too Hard to Swallow?
Bonds Are a 'Safe' Investment: A Big Lie Gets Even Bigger
Several surveys show that many consumers will not buy cars from bankrupt companies. That may hurt sales at General Motors (NYSE: GM) and Chrysler, but with some people still wanting to "buy American," it could help Ford (NYSE: F). Ford is coming to market with several lines of fuel-efficient cars while GM may have to cut its product line. Advantage to Ford again.
By borrowing billion of dollars when the credit markets were strong and restructuring deals with creditors and the UAW now, Ford may quickly end up as the largest car company in the US. If it can pick up market share and continue to ruthlessly control costs, its margins could be better than they have been in years. According to Bloomberg, "Ford is prepared to do whatever is necessary to remain competitive, including going beyond the cost-cutting efforts already under way."
If Ford becomes the only American public company proxy for the U.S. car market its stock could double and still trade well below its 52-week high of $8.79. The shares currently change hands at $2.76. All it may take is evidence that the domestic light vehicle market has stopped driving off a cliff and is beginning to stabilize.
Douglas A. McIntyre is an editor at 24/7 Wall St.
Goldman Earnings Sink After Buffett Dividend
Johnson & Johnson's Income Falls 23%
Burberry Shares Leap on Sales Update
Reader Comments (Page 1 of 1)
4-05-2009 @ 12:48PM
dominick speziale said...
a chance to make money on ford--you ain't seen nothin' yet. How about a triple---think about this:
1. Cash for clunkers-only pays for cars with 27mpg and up--that kills chrysler dead
2.Ford has purchased a minimum(probably more) of $11 billion in debt back--thats earnings of $5.50/share THIS quarter
3. their breakeven is down to 9 million car market
4.market share is rising
5. intro of the 41mpg fusion sold out around the world
6.220 million shares SHORT about to get squeezed.
oh there's not a little to be made this is a gusher!!