Watching Ford Motor Company

Posted on February 7, 2006 , filed under Stocks | Print This Post

F, Ford Motor Company is part of my watchlist. I’ve written two posts about Ford concerning the company’s embattlement with declining SUV sales and rising gasoline prices. You can use the search function on Raw Greed to view the original posts. F is currently trading at low $8′s. Investors will look toward GM, General Motors Corporation for direction in the auto market in 2006. I expect sales to stay flat for GM and Ford and Japanese auto makers to increase their market share. GM and Ford must rapidly speed up production of energy efficient low cost vehicles to compete with Japanese automakers. I believe the share price of Ford is heavily influenced by speculation. I believe fears over terrorism and Iran’s nuclear ambitions will likely keep energy prices stable or rising for much of 2006. I’ve been watching the price fluctuation of the stock and I expect without any positive sales results the price of the stock will likely trade along with the price of crude oil. If the price of crude significantly drops, Ford’s long term prospects for SUV sales improve. I believe there are investors who consider Ford’s drop a bargain opportunity. I see further drops in F and I may purchase shares of the stock if it drops below $7.80. I expect that F will trade between $7 and $9 for much of 2006 until the price of crude drops or the company shifts its focus from SUV’s to a different segment in the auto market. I remain unsure if Ford can post strong sales results for 2006.

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3 Comments »

Comment by Gualberto

2006-02-07 16:29:11

I purchased LEAPS on F the last time it was at this range. made a something like 200% over two years. Don’t know if I’d do the same now. If I had to pick though, I like F alot more than GM.

Just curious, how did your portoflio jump up $100,000 in a week? My guess is you added some money, but I’m not exactly sure.

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Comment by Justin

2006-02-09 12:11:56

I like ford in the low 8′s, but high 7′s may not be coming back. I added a bunch to my IRA in the 8.10-8.13 range.

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Comment by Andy

2006-02-09 15:33:53

Gualberto, I added 100K to the portfolio.

Justin, I believe F has a good shot at dropping below $8 again. It might not happen right away, but I believe its likely in the first half of 2006. If F drops mid $7′s-high $7′s I will pick up some shares of the stock.

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