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Wednesday, October 22, 2014

Ford's chart annoys me


With the usual caveat that the following is for information purposes only, I am not a licensed securities dealer and this is not meant as a recommendation to buy or sell securities:

OK, so Union Pacific has popped all the way back up, so there's no point in buying it now.

Magna has only recovered a third of its drop, but it's only got about another 18% left on the table for it to get back to its August high.

But look at this:


Really?

Here's the weekly:


Are you serious?

So the market is saying it considers Ford's outlook to be as terrible as it was in May 2013. That looks silly to me.

Apparently part of this is based on Ford's decision to redesign its light trucks using aluminium. Apparently the market thinks that aluminium trucks are for wimps, and those butch sweaty men in home construction will prefer nice heavy steel trucks from GM.

Apparently engineers have no idea how to build things out of aluminium.

I dunno. I'm not buying, just cos Canadian banks like taking 3-5% or something off the top when you buy US stocks. But this chart just speaks silliness to me.


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