Ford Motor Company (F)

This is a great play right now! 

Technicals
This stock's price has tested the $8/9/10 levels a few times, and it bounces back from there rather quickly over the past couple years. 

Fundamentals
Their 2011 bottom line values cash, balance sheet, and income statement have vastly improved compared to their 2009 & 2010 numbers.  This year, 2012, are not expected to be as good as 2011, but Ford crushed it in 2011.  The numbers should still, yet be significantly better than 2010/2009. 

Overall Market
Europe has been a mess; however, Bernanke said that The US would step in to help if needed.  This perhaps means that QE3 is on its way. 

BOTTOM LINE
Ford is an undervalued stock with huge upside.  If the market continues to rally, Ford will outperform most of the market.  If the market attempts to tumble, QE3 will step in to help the US and Europe, allowing Ford investors to reap benefits of a "parlay."  Ford doing well in the US and Europe. 

As of 9/7/12
Ford $10.14

Prediction
This stock will be at $25 per share by the end of 2014.

Position
50% of my portfolio is on Ford, and I'm averaged in at $10.26 per share. 

BOL

Wow , 50% of your portfolio... You're going all in on this Company.

You already pointed it out, but I believe both GM & Ford derive much of their profits from Europe.  QE3 won't do much to change what goes on Europe.  They have their own problems that Draghi is trying to figure out.   As long as Europe suffers, the automakers will suffer, too.

Also, remember the UAW always brings the Big 3 to their knees at some point.    They are a profit buster, and are not on your side.

Thanks for the replies and input guys.

Here's my plan.  When Ford gets to 11.50, I'm going to sell $12 calls for 1/4 of my position on ford.  The hope would be that ford would stay close to but not go over $12.  When those options expire, I'll do it again.  If I get called off, I'll sell $13 or $14 calls for another 1/4 of my standing position on ford.  I will do this until I have 1/2 of my standing.  When I have half of the shares that I have, and have made profits on the calls and the sale, I'll let the rest ride right into retirement.  BOL to all!

Ford is at $10.38 per share as I type on Tuesday, 9/18/12. 

+$0.24 = +2.36%

dead $$  don't like it at all

Dead Money?  Wouldn't that have been the right call when they were trading at $18/share from $3? 

Please explain your "dead money" at this point to me. 

Do you really think your going to get a price better than $8/9/10 per share?

They're paying a dividend, the 1st to negotiate with unions, avoiding connections to the US Gov't, working with AAPL, and making progress during a rather crappy time for autos? 

What price would you call it "smart money?"  I'm obviously saying now. 

Buy TM if you just have to be in that sector!

I just had to post an update today, I guess.  

Ford is trading between $10.60 & $11.00 as I type on Wednesday, October 31, 2012. 

This stock, since posting/touting at $10.14, at 11:50 AM is trading for $10.88, which is +7.3%

Ford is trading at $13.45 today.

woops meant....

Good call Tafter!!

 

I would set stops to lock it in... the overall market is very tipsy at this point...

Questioning my Ford pick!