"F" is for Ford

[Nuke And Juke]

"F" is Ford's stock symbol. This is NOT a bash FORD truck post. I've written alot about Investments and the market today is waking up to a new day at Ford. The CEO is out and is replaced by the COO. Typically, this would be exciting for an investor...but not at "F"

I do not hold Ford Stocks. Nor do I recommend holding Ford Stocks. The only play for Ford is to be in the stock under $6.50 a share and own it for the dividends. The dividends are running 8.5% which is not too shabby.

This is NOT a growth stock. It doesnt have a great hitory. More importantly, the company has a track record of producing failed leaderships for quite some time. Read for your self.

https://www.cnbc.com/2020/08/04/for...-as-stock-lags-automaker-taps-jim-farley.html

Lastly...if you want true change, you need real outsiders that can turn this company around. Here is what the new CEO has done. On paper, if you cannot get excited about the CEO's achievements since 2007...dont expect anything to change now.

Farley joined Ford in 2007 as global head of Marketing and Sales and went on to lead Lincoln, Ford South America, Ford of Europe and all Ford global markets in successive roles. In April 2019, Farley was chosen to lead Ford’s New Businesses, Technology & Strategy team, helping the company determine how to capitalize on powerful forces reshaping the industry – such as software platforms, connectivity, AI, automation and new forms of propulsion. He was named chief operating officer in February of this year.

 

[TheGman]

I was catching bits and pieces this AM on CNBC , saw charts of performance under various CEO seems like Mullally did well.

I dont own F either , drive one but dont want the stock as for dividend-value trap?

 

[MrJim]

I inherited some Ford stock. Ain’t a whole lot. I think it maybe about a $10 share stock if this Bronco is a big hit and economy stays at least stable. At my age I’m looking for dividends.

 

[spistols]

SEMA show was cancelled yesterday. This is/was a huge deal as it allowed for massive advertising and exposure of a new vehicle and all of the customization opportunities. Last year almost every vehicle in the 4x4 section was a Gladiator.

 

[sparked1]

Got in Ford when it hit $5. Just increased my position this week on the news of the new CEO. Expecting the stock to move between $8-10 in the next 6 months or so. The dividend is nice for sure but if they cut or eliminate it for good, it’s a $5 stock again. The Bronco could save them, not unlike the Cayenne saved Porsche.

On a side note, if you want growth and have a little risk appetite, look at NIO and WKHS. Been in both since $3.50 and $8.00, respectively. Those are doing well I’d say. I’d wait for a pullback from current levels though.

 

[Bennyboy]

Not a stock guy per se but am a car guy. Ford’s biggest problem is not building what customers want. The Bronco looks cool but just like the Ranger, it’s most likely a mediocre product riding on a good name.

If they wanted a Jeep killer, they needed something the Jeep doesn’t have: a V8. Since they didn’t put one in it, I’ll predict it sells decent at first and then falls off once people realize it’ll never actually off-road like a Jeep (if nothing else because of the smaller aftermarket). And as cool as the “Bronco” name is, it’s still nowhere as recognizable as “Jeep”.

 

[rbstern]

I've been long on Ford since $2, when Mulally first came in. I had followed him at Boeing, and bought Ford stock because they hired him.

Mulally read the tea leaves correctly, was decisive, and put the company in position to survive the coming recession by borrowing against everything and amassing a huge pile of cash to sustain the business. They even mortgaged the blue oval. It worked. They skipped a bailout (GM, Chrysler), bankruptcy (GM), and becoming a takeover victim (Chrysler, by Fiat). Mulally provided outstanding vision and leadership. Having an engineering and global manufacturing background was also extremely helpful, as he could see the big picture of product innovation and production streamlining.

Ford made a huge investment in aluminum manufacturing when they redid the F150. It was a good bet, and they'll leverage that capability for a long time, including future, lightweight electric cars. They made a similarly decisive bet when they started mainstreaming 6 cylinder turbo motors in the F150, knowing that people would get over the "truck should have a V8" tradition IF the motor they put in the truck had the required performance. It did and the market has accepted it.

Ford is capable of leading, but it needs to lead with product. Hopefully, the Mach E and the Bronco sell well. Both have been well reviewed.

I think both Fields and Hackett were simply overmatched by the size of the footprints they had to fill after Mullaly. Capable business people are not the same thing as superstars. Problems in foreign markets, plus the considerable investments in future tech like self-driving and electric platforms have weighed down the profits.

The dividend is currently suspended, BTW.

And that brings us to another problem: The Ford family, with it's controlling interest via preferred stock, wants the company managed to keep those dividends flowing, which will always be a drag on Ford's ability to "swing for the fences." So, Farley may not be able to be what he wants to be. I guess we'll see.

I expect this stock to kick around between $6 and $9 for the next couple of years, until the self-driving/battery/e-car investment in partnership with VW plays out. If they do it right and can compete well in that market, the future is bright. Otherwise, the future is uncertain.

 

[Freshly Minted Georgian!]

Dig up Edsel and bring him back! I'd say dig up Henry but he was an A-hole

 

[MrJim]

Got in Ford when it hit $5. Just increased my position this week on the news of the new CEO. Expecting the stock to move between $8-10 in the next 6 months or so. The dividend is nice for sure but if they cut or eliminate it for good, it’s a $5 stock again. The Bronco could save them, not unlike the Cayenne saved Porsche.

On a side note, if you want growth and have a little risk appetite, look at NIO and WKHS. Been in both since $3.50 and $8.00, respectively. Those are doing well I’d say. I’d wait for a pullback from current levels though.

Ya I wish I would have bought more when it was just under $5 a share.

 

[Nuke And Juke]

Plenty of chances to buy @5 coming

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