A Thousandaire Says, “Buy Ford Stock!”

There are several reasons I think Ford is a decent enough of a long term buy though you’d have to be willing to hold stock for 2-5+ years…

a) Ford is at a historic low since Bill Clinton took office in 1992. Strange coincidence that US automotive makers found Clinton’s 8 years in office to be very fruitful, eh? So, we (as traders) would be buying low. You can’t get any cheaper than $5.81. What, $3.61 a share?

b) Billionaire investor Kirk Kerkorian raised his stake in Ford recently. You don’t second guess Kerkorian like you can Carl Icahn – though, it’s known Kerkorian likes to dabble around with US car makers and then get frustrated.

c) Plain and simple, Ford is actually making cars that look decent and that people would actually consider buying. I like the new Fusion, Focus (it’s weird but ok enough), Edge, Flex, and even the Taurus.  Though, the Taurus line would more profitable if Ford completely and utterly destroyed the name “Taurus” and reverted back to calling the line the 500 like they did circa 2005-2007. Whatever. Regardless, after 10 years, did the higher ups at Ford finally realize the focus groups they were testing the designs of their vehicles on have consistently been dead wrong? There had to be focus groups, right? Tell me the design of an automobile didn’t lie solely in the hands of a bunch of dorks on an engineering team.

d) Ford is making some profits while their US sales are slumping. What’s that mean? A challenge to the US consumer to do something to help a US company. Maybe people will start thinking twice about buying that new Honda, Toyota, Subaru, etc. if Ford keeps posting profits, the car lines are solid, US sales suck, and the rest of the world is saving our country’s pride & joy company.

e) The hiring of James Farley. Don’t know who James Farley is? Check out this article. Briefly, he helped Toyota own the world by leading up the Lexus and Scion line. Do you know those commercials being aired with people cluelessly thinking a Ford car doesn’t exist that would fit their needs and they realize they’re wrong by test driving a Ford and then they buy one? Or, how about the commercials that tout the advanced/modern technologically the new Fords have like Microsoft Sync. These advertisement and marketing campaigns are James Farley’s brainchilds. He’s come to Ford for one reason – to help them kick everyone else’s a$$. In Farley I trust…

Within 5 years, it’s solely my point of view (and I never give trading advice though I follow the markets regularly) that you’ll have the chance to sell Ford’s current $5.81 stock for $30+ a share. Not a bad trade! Of course, all of this assumes we’re only given what’s currently known

1 thought on “A Thousandaire Says, “Buy Ford Stock!”

  1. This is a tremendous blog posting, im glad I came across this. Ill be back later on to check out other posts that you have on your blog.

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