|
I'm certainly not saying there is no risk here. I would not bet the farm (or even a piece of the farm) on this.
If you look at the three companies, Ford is generally considered to be the best candidate and in the best shape to weather this storm.
To me there are three possible outcomes:
First, Ford simply goes belly up and sells off its assets: Not likely.
Second, Ford makes it through with some sort of bailout from the gov't and does not have to file Chapter 11: If this occurs the stock would likely return to something close to its average over the last 5 years, around $8 per share. That would be about a 550% return from today's levels.
Third, Ford has to declare Chapter 11 either with or without a bailout from the gov't and reorganizes. If that is the case, and you keep your shares throughout the reorganization you should receive shares in the new company. It may not be 1:1 for your shares, but you will get shares. Then you see if Ford can move forward or not.
Again, I'm talking about a pretty small amount of money here, an amount that wouldn't really upset me TOO much if I lost completely.
__________________
Rick
1984 911 coupe
|