Ford (F) Shares Could Top $20 in Next Couple of Years with New Pension Plan
Down)
Ford Motor Co. (NYSE: F) announced it would be dumping $3.8 billion into its global pension plan in 2012 after only placing $1.5 billion in it during 2011.
With pension risks lingering heavy on the stock’s price potential, Ford looks to rid investors and its workers of the worry. The company looks to invest roughly 80 percent of its U.S. pension plans into bonds over "next several years" as it has been working out quit well for them.
"We believe this is a prudent way to further minimize the volatility of our pension assets relative to the liabilities," reported Ford spokesman Todd Nissen.
Ford's pension plan rose 7.7 percent in 2011, versus the broader U.S. stock market which was flat.
The company has been performing well, despite missing last quarter's earnings on weaker international sales and rising commodity costs.
Shares of Ford are trading up 16.45 percent year to date at $12.53 per share and an analyst at Citigroup, Ital Michaeli, believes shares could reach $24 by 2015 if the company is able to fully fund its pension plans by roughly 2015.
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With pension risks lingering heavy on the stock’s price potential, Ford looks to rid investors and its workers of the worry. The company looks to invest roughly 80 percent of its U.S. pension plans into bonds over "next several years" as it has been working out quit well for them.
"We believe this is a prudent way to further minimize the volatility of our pension assets relative to the liabilities," reported Ford spokesman Todd Nissen.
Ford's pension plan rose 7.7 percent in 2011, versus the broader U.S. stock market which was flat.
The company has been performing well, despite missing last quarter's earnings on weaker international sales and rising commodity costs.
Shares of Ford are trading up 16.45 percent year to date at $12.53 per share and an analyst at Citigroup, Ital Michaeli, believes shares could reach $24 by 2015 if the company is able to fully fund its pension plans by roughly 2015.
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