If less bad news is good news than Ford Motors Co. (NYSE: F) delivered that today. Early this morning, Ford's earnings report revealed better than expected numbers, albeit another loss. Ford lost $1.4 billion in the first quarter, but it burned through less money.
Analysts expected a loss of $1.23 per share, and were positively surprised when the Detroit automaker said it lost, excluding special items such as gains from the company's debt restructuring, 75 cents per share.
The stock closed yesterday at $4.28 but is moving up over 20%, getting a jump on the market in early trading.
This should lend support to the market bulls who believe (or hope and pray) we are starting to form a bottom and may have actually reached that bottom on March 9. I'm one of those bulls: Nostradamus was a punk! Have we reached bottom?
In presenting its Q1 report, Ford continues to maintain that it has the cash to make it through this historic recession and will not need assistance from the government. That may be so, but it will need help from consumers, and that does not look to be coming with any great vigor given that unemployment is still rising and families may have more immediate needs than a new car.
Still, the market is likely to have a good day, and unless the bank stress testing sours the mood, Ford's message should set the tone.
Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm. He writes the columns Chasing Value and Serious Money. Disclosure: I do not own shares of Ford but have sold naked puts.
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