Ok, yesterday stocks of Ford (F) closed at $2.59/share. Ford is the only one of the big 3 that is not taking $ from us for now and is also the lowest price/stock. What is your take on buying 300-400 stocks at this price and riding the storm? Do you think Ford could bounce back in 5 years at perhaps $8-$12/stock?
My personal feeling is that Fomoco should go down to about $2.00 p/share by FY end (03/2009). But no lower. You could buy now, it is nearing bottom, but if you wait a couple months more, you'll get 'em cheaper. Definitely a good buy. They will bounce back in 8-10 years time. Think long term investment.
Well, if you go back to December of 1981 the price was $1.06. But in the last 5 years the lowest price has been $2.19 in October of this year. But in December of 2003 it sold as high as $16/share. So I wonder if it will ever bounce back to double digits. If it does, lets say to $10/share and you buy 400 shares at $2, that's a $3,200 capital gain. The question is how long will it take and is it worth it?
The 52 week low for the last year was $1.01 a share. I bought at $2.00 a share thinking it had bottomed out, only to watch it keep falling. Of course, it has recovered and gone up a little, but I am not holding my breath. Although Ford didn't get a bailout this go around, they will have their hand reaching for the cookie jar before to long.
I have hade 400 shares that I bought about 6 years ago. I've wanted to dump it but my adviser keeps telling me to hang on, it will get better. Maybe he knows something I don't. At this time I would take a pretty good hit on it if I sold. That is another reason to just go for the long and bumpy ride.
In my opinion, it is a gamble not worth taking. You'll be looking at the big 'F' in your portfolio and cussing about it every time you see it. Just a quick look at the basic chart tells me it's a bad gamble. EPS -5.214, look at the analyst estimates. Even the best estimates have Ford losing more next year than this year. To think a stock is going to go from $2 to $8 with a balance sheet like Ford has is quite unlikely. If you want to gamble on it buy an option. If you want to buy some on a dip, and sell on a day it pops you can maybe make a quick $50 or something if you are lucky. I've done it with Ford and break about even.
BLACKROCK MUNIYIELD (MPA) is pretty low priced at $9.25/share with Div & Yield: 0.64 (7.20%) Herzfeld Caribbean Basin Fund Inc. (CUBA) is holding at $4 and may be a good gamble since Obama will be wanting to improve relations with Cuba once he takes office. Just on rumor alone this one will probably spike like it did when everyone thought Fidel Castro died.
Good luck to everyone investing in the new year. I plan to wait patiently for what I have in the market to go back to green. I'm going to sell it and pay down my house with it.
Look at the economics. Is Ford a in a growth sector? No cars are pretty fixed. I think of the big 3 its in the best position but even healthy its a 8 dollar a share stock at best. I own Ford and i do buy their stock at about 10 dollars a month through ING Share builder to try and cost average a little. However i am looking at a 10 to 15 year horizon when i believe the market will rebound and Ford will hopefully start paying Dividends again.
If you want discounted companies that are in growth sectors check out GE, Pfizer, and Johnson and Johnson. I like GE myself becuase they are a mega Cap company that pays regular divs and always have their toe's in a potential growth sector. Their AAA rating (if they keep it) gives them an advantage over their competitors for borrowing capital and they are well diversified. I also believe that their share prices already relfect the worst of the Market and should not go too much lower. So if you cost average them over the next few months you should have a good return in a few years.
I have hade 400 shares that I bought about 6 years ago. I've wanted to dump it but my adviser keeps telling me to hang on, it will get better. Maybe he knows something I don't. At this time I would take a pretty good hit on it if I sold. That is another reason to just go for the long and bumpy ride.
Sell now and you definitely lose. (F) closed at 1.73 today...okay, it's lower than I thought it would go, but you cannot sell if you bought at higher p/share price. Remember the rule is "buy low, sell high." This is going to be a loooong and bumpy ride back uphill.
Ok, I am kicking myself to death. When I first mentioned Ford, and as per the last posting, the stock was $1.74. Today is trading at $5.74!!! Do I need to say more? Ouch!!!!!!!
Because I think, think, mind you, that Ford will be the only U.S. car maker left in the country that is not under the control or manipulation of the U.S. Government.
Because the Ford Fusion Hybrid is SELLING.
Because the Ford CEO made the right moves two years ago to thwart what happened with GM a la union deals.
