What else can we say about Ford???
Last night on the conference call from Alcoa, the ceo mentionned automobile segment was doing good. To me good is a lot better than doing OK or STABLE...
So how is Ford really doing? Well they just started the production in their new facility in Romania where they have invested over 850M$...not bad...
They also got their credit back to investment quality grade and since Q1 results were released Ford was downgrade by some investment analysis.
So why should we pay attention to Ford? Look at the P/E ratio: it is 1.99 (not a typo error here)
Ok i will agree that sales are down as is profit but how low can it go?
Simple maths here: 4,75$ profit per share means a p/e of 1,99 where GM and FIAT (Chrysler) are at a p/e of 3,5, that means that FORD profit will have to get down to 11B$ (40% decrease over all divisions) to be at a comparable P/E.
So, i think it is time to accumulate from now on. Some here and there and more buying on dips. Yes there maybe some other bumps over time but overall Ford is a great investment if you have 2-3 years window.
As usual (and more actually) DO NOT INVEST MORE THAN YOU CAN AFFORD TO LOSE and always do your own due diligence before investing in any stock. CHEAP SHARE PRICE does not necessary mean a real bargain. Play with extreme caution.
Get THE PLAY OF THE DAY on Twitter : @investman2
Last night on the conference call from Alcoa, the ceo mentionned automobile segment was doing good. To me good is a lot better than doing OK or STABLE...
So how is Ford really doing? Well they just started the production in their new facility in Romania where they have invested over 850M$...not bad...
They also got their credit back to investment quality grade and since Q1 results were released Ford was downgrade by some investment analysis.
So why should we pay attention to Ford? Look at the P/E ratio: it is 1.99 (not a typo error here)
Ok i will agree that sales are down as is profit but how low can it go?
Simple maths here: 4,75$ profit per share means a p/e of 1,99 where GM and FIAT (Chrysler) are at a p/e of 3,5, that means that FORD profit will have to get down to 11B$ (40% decrease over all divisions) to be at a comparable P/E.
So, i think it is time to accumulate from now on. Some here and there and more buying on dips. Yes there maybe some other bumps over time but overall Ford is a great investment if you have 2-3 years window.
As usual (and more actually) DO NOT INVEST MORE THAN YOU CAN AFFORD TO LOSE and always do your own due diligence before investing in any stock. CHEAP SHARE PRICE does not necessary mean a real bargain. Play with extreme caution.
Get THE PLAY OF THE DAY on Twitter : @investman2
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