Reiterating: Ford, due to likely bottoming U.S. recession

Posted Jun 25th 2009 2:50PM by Joseph Lazzaro
Filed under: Ford Motor (F), Stocks to Buy

I'm reiterating a Buy recommendation for Ford (NYSE: F). (First recommended on May 18, 2009 at $5.35.)

Recent research points to a less-than-feared FY2009 revenue decline: originally projected at above 25%, revenue will probably dip 15-20%.

Further, continual, if incremental improvement in credit market conditions will further help support vehicle sales, as will an uptrend in U.S. consumer confidence stemming from the likely bottoming U.S. recession. Note: Don't consider Ford's shares if you can't tolerate high risk.

Stock Analysis: Ford is a high-risk stock. Consider buying a 50% position in F now; then buy another 25% in four months, if U.S. and global economic conditions don't worsen substantially. Under any circumstance, don't buy more than 75% of your F position in before October 2009. Sell/Stop Loss if you were to buy shares in this company: $3.75.

Disclosure: Lazzaro has no positions in stocks, but does own shares in two Pimco Bond Funds: PHDAX and PYMAX.