Watching Ford Motor Co.

Posted on November 11, 2005 , filed under Stocks | Print This Post

F, Ford Motor Co. is embattled with rising energy costs and faced with sluggish sales for its SUV’s and trucks. Rising energy costs have forced Ford customers to cut back on purchasing new vehicles. I believe greedy short sellers have pushed the price of Ford down on speculation that the company is faced with several years of sluggish sales and mounting debt. In the short run, fluctuations in the price of gasoline will likely keep Ford automobile sales and the stock depressed for the next 6-12 months. I believe within 2-5 years demand will slowly ease as consumers shift to hybrid energy efficient vehicles. The cost of gasoline over this time should drop and sales should pick up for Ford’s SUV’s and trucks. In the meantime, if Ford accelerates energy efficient automobile development to catch up with Japanese automakers, the company’s sales for small and midsize vehicles should pickup going into 2007. I like the stock at under $7.

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