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BloggingStocks Interview: Ford to go private?

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Brent Wilsey, a registered investment advisor, operates Wilsey Asset Management. One sector he focuses on is autos. Here's an interview with BloggingStocks.com:

What do you think of the new leadership at Ford?

I hope for the best but fear the worst. Mr. Alan Mulally from Boeing has a very good track record, but at Boeing they had one competitor, Airbus, now he faces the forces of Toyota and Honda just to name a few. Look at how strong the Korean car makers have come on. And, in the years to come, we will see cars from China as well. I'm afraid this will give the stock a short term increase, but after the excitement dies down and investors realize it will take years to turn this company around -- not days -- the stock will probably fall again.

There are rumors that Ford may go private. What's your take?

Ford currently has $153 billion in debt. So, to take this company private would make little sense. After all, with the current value of the shares outstanding at $16 billion, why spend $16 billion to take on $150 billion in debt? The company is currently losing money along with market share.

Of course, there has been a shift in the auto industry over the years. Toyota and Honda have come here to the US to build better cars for less. It also helps that they don't have the heavy labor contracts.

Symbol Lookup
IndexesChangePrice
DJIA-89.2312,801.23
NASDAQ-23.352,903.88
S&P 500-9.311,342.64

Last updated: February 11, 2012: 03:14 PM

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