Ford Stock

tmare_IHB

tmare_IHB

New member
A relative just informed me that he bought $25K in Ford stock last week. I'm not so sure that their current debt and lack of equity makes this a good buy. He feels pretty confident about their comeback and of course the price was low ($2ps). Any thoughts on this from our resident experts?
 
[quote author="tmare" date=1233969108] I'm not so sure that their current debt and lack of equity makes this a good buy. </blockquote>


Uhh-h-h, ya think?
 
Father in law has doubled his 25K investment, he says he's in for the long haul, any thoughts? Personally, I would probably just pull it all out now.
 
[quote author="tmare" date=1240394475]Father in law has doubled his 25K investment, he says he's in for the long haul, any thoughts? Personally, I would probably just pull it all out now.</blockquote>


Take the inital seed money off the table, and freeroll the rest.



I think Ford is going to make it, but IMO it's going to get worse before it gets better.
 
[quote author="tmare" date=1240400717]I like that advice, no loss at least. Any other thoughts?</blockquote>


Another consideration - what was that original $25K earmarked for?

High-risk, "see what I can do" money, I hope. If so, use it however you like. Double down, maybe?



Now, if it was for the grandkids' college fund, that's another story...

Kids may have to go to Yale instead of Harvard, for shame.
 
[quote author="IrvineRealtor" date=1240402488][quote author="tmare" date=1240400717]I like that advice, no loss at least. Any other thoughts?</blockquote>


Another consideration - what was that original $25K earmarked for?

High-risk, "see what I can do" money, I hope. If so, use it however you like. Double down, maybe?



Now, if it was for the grandkids' college fund, that's another story...

Kids may have to go to Yale instead of Harvard, for shame.</blockquote>


Oh, it would be nice if it was for my kid's education. I'd have to guess it's for lots of traveling and leisure in retirement, oh well, this is as it should be.
 
[quote author="tmare" date=1240394475]Father in law has doubled his 25K investment, he says he's in for the long haul, any thoughts? Personally, I would probably just pull it all out now.</blockquote>
Time to hit the 10/20 No Limit table at Commerce.
 
Chrysler will go down by the end of this month, GM has a huge June maturity (over $1bn) and it will default and go into Ch 11. We wrap the 401k plan for all 3 (GM, Chrysler and Ford), I'd recommend you to be careful with Ford, take your profit or buy puts.
 
related article: <a href="http://www.bloomberg.com/apps/news?pid=20601087&sid=aOloQhPHrqX0">GM Said to Speed Cutbacks to Lower Break-Even Point</a>
 
[quote author="BondTrader" date=1240439936]Chrysler will go down by the end of this month, GM has a huge June maturity (over $1bn) and it will default and go into Ch 11. We wrap the 401k plan for all 3 (GM, Chrysler and Ford), I'd recommend you to be careful with Ford, take your profit or buy puts.</blockquote>


BondTrader you have impeccable timing: <a href="http://online.wsj.com/home-page">WSJ Breaking News: GM's CFO says the company won't make its June 1 debt payment of $1 billion.</a>
 
You father seems like he doubled his money.. How do you not sell a double in this environment?



GS just put a conviction buy on Ford. These are the same guys that told you oil was heading for $160 a barrel



SELL SeLL SeLL



Ford is in much better financial shape, but the failure of GM and Chrysler will hurt all auto stocks imo.
 
I haven't heard from Awgee or BV and I would like to. So far, the best advice I see here is coming from no_vas to take out the seed money and let the rest ride. I can't help but think that if the other US car companies are doomed, maybe Ford is going to be the only survivor and thus, in good shape.
 
I very much would take the seed money out and leave the rest. Its "free", but to get greedy or $$-struck is a path for disaster.



Keep us apprised though, it will be interesting to find out.
 
[quote author="tmare" date=1240490458]I haven't heard from Awgee or BV and I would like to. So far, the best advice I see here is coming from no_vas to take out the seed money and let the rest ride. I can't help but think that if the other US car companies are doomed, maybe Ford is going to be the only survivor and thus, in good shape.</blockquote>


Sorry, I'm not awgee or BV, but I will give my ?2 on it, and BV and I are usually on similar pages. Take your seed money and some profits, let the rest ride, and then find your next investment. BV has said he has gone back to the dark side/short bias side, and while I haven't officially with opening a trade... I want to when I feel the time is right, and I am getting there. A lot of us believe we are entering the second leg down. It may not be as rapid, but it won't be pretty. Of course, technicals and news can change that at a moments notice.
 
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