Purchasing Ford Motor Company

dots Posted on April 12, 2006 , filed under Stocks | Print This Post

Today I purchased 1000 shares of F, Ford Motor Company at $7.20. Ford has dropped on weak sales, rising crude oil and gasoline prices. I believe speculative short sellers have pushed the price of F down. The company must shift its focus toward energy efficient hybrid vehicles as cost conscious consumers have moved away from purchasing gas guzzling SUV’s. Sales for hybrid vehicles have remained flat for the first Quarter of 2006, but I expect sales to pick up if oil and gasoline prices continue to rise. I believe in the mid term, hybrid vehicles will be the pre-cursor to a gasoline alternative fueled vehicle. Hybrid vehicles represent a substantial investment by nearly all automakers. In addition to Ford’s Escape Hybrid SUV, the company is set to rollout at least 7 more hybrid models by the end of the decade according to the WSJ*. My target sell price for F is $8.50 in 3-6 months and $9.50 in 6 months-1 year. Please click the predictions link at the top of the page to view my complete list of predictions.

*Note: You must have a subscription to view the WSJ Online

Yellow list
Stock Symbol Name Posted Date Target Buy or Short Price Target Sell or Cover Price, Short Term Timeframe Target Sell or Cover Price, Long Term Timeframe Target Met ?
F Ford Motor Company 4/12/06 Under $7.35 $8.50 in 3-6months, $9.50 in 6 months-1 year Only Short Term target N/A


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1 Comment »

Comment by trinh pham
2006-04-12 21:39:02

Andy, you are much more knowledgeable than me when it comes to the market – and keep in mind, I’m just an amateur.

But I just don’t understand the logic behind purchases such as Ford, Lucent, etc.

I’m not sure what Ford has going for it.

You mention the low sales for Ford’s cars – the reason their sales are low is because they make terrible cars (my opinion of course), and they’re unable to anticipate trends.

When Toyota and Honda were starting to make hybrids, Ford was still concentrating on huge trucks and SUV’s, their bread and butter.

Hybrid sales will pick up…but again, I think Toyota and Honda will grab the market lead. Even then, hybrids won’t go mainstream any time soon, in my opinion. You save money on gas, but no so much as to break even on the premium, according to research reports I’ve read.

Gasoline alternatives have been all the rage (solar, etc.) but I think it’s still such a niche market – I don’t expect the big oil companies to not put up a fight, for example.

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