Ford stock
 

Buy?

Seems to be approaching 5 year lows. Certainly a long term investment, but they have the seeds planted for some positive results.

What do you think?

Funny - I was just mulling a "An open letter to Mr. Bill Ford - your company and your products and your dealers $uck" thread...

Young friend has called me in tears three times in the last week. First she broke the key off in the ignition of her 2000 Ford Focus. Local garage did not want to know. AAA got her towed to a local Ford dealer. They are telling her it will be $400 for the new keys, new cylinder, labor and programming. Now they call her back and have found a "problem" in the steering column and want to charge a few hundred more... So, either the product is crap, the dealer is a thief - or most likely BOTH.

I told her to get a Corolla...

So I think is a $hithouse operation and would not by $0.01 in stock.

All dealers are crooks. 8 years ago when I had my then 5 year old Nissan truck in for an oil change at the dealer (they sent me a coupon to do it for $10). They told me the transmission was leaking, and needed the seals replaced. I told them I couldn't afford it right now, and left never to come back. I still have that truck. I've never touched the transmission, and none of the places I've taken it for service since then have said anything about the transmission.

I made some nice money riding the Ford stock up from a low 2 years ago. I will have to check it out I have not been paying attention lately.

Last time I rose it up from approx. $8 a share to $14.5 over a 6 month period.

I didn't say their cars weren't utter trash :)

All I care about is if Billy boy can BS the stock price up a few ticks...

I think it definitely has a chance of coming back up and if not the prices are low enough that you can still make good money in dividends. If you think about it, the interest for ordinary savings in a cd for one year is about 4.20% and with dividends alone you could top that. Example: if you bought 250 shares at $8.15 per share that is $2037.50, basic dividends would give you $100.00 annually ($25.00 per quarter) where is putting $2037.50 in a savings account at 4.2% would give you $85.58. The risk you take is if the stock loses value.

They just paid out the dividend, so you're looking at 3 months to reap the next.

This is certainly a risky buy, but there will eventually be a time when value funds and buyers will buy into Ford stock. If you can wait until that time, you will probably be fine.

For a slightly less risky move, consider buying Ford bonds. I think there are a few 2006 bonds yielding 7-8%.

You think if you were an idiot and broke your key off in a Toyota, the dealer would fix it for free!? Especially on a five year old car? Dream on :rolleyes:

E

Ford has the same UAW workforce and union mentality that is sinking GM too. Including their pension obligations and lifetime full coverage health insurance, their labor cost per employee is more than Microsoft's! I wouldn't buy a sinking ship...

Unless it has a old 302 4 barrel in it with a C6, it sucks.