Monday, September 8, 2014

This Ford move today is just silly


Ford Motor Co.:



It's -3SD on a supposed Morgan Stanley downgrade and $16 target. And maybe there's something else about a China recall, which really means the recall news has already been baked into the price.

Thing is, with a 13 cent quarterly dividend, this stock yields 3.1% right now - that kind of yield for a cyclical just looks stupid to me. And US auto sales should continue to grow; the US fleet is still too damn old. And Ford is the company that makes light trucks for construction.

I'm not buying because the bank makes love to my bum with its insane forex charges, but I don't get why everyone else shouldn't be piling in on this stock right now.


3 comments:

  1. I remember back in 09 when Ford hit $1.44 in the summer. But that was when doooom was really a happenin' thing.

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  2. Actually that was Oct 08, got my month mixed up there.

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    Replies
    1. It was a home run buy, too. GM was the one going bankrupt, not Ford. Just imagine, you could have bought Ford for $1.50 and spent the last 6 years laughing at the dumb goldbugs.

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