Ford (F) Could Double?! -Barron's

Barron's published an article this weekend presenting reasons why shares of Ford Motor (NYSE: F) could double over the next couple years.

Shares of Ford haven't traded consistently below the $6 level since 1986, and, while the stock rose about 16% last week, Barron's still believes Ford has few friends on Wall Street. Barron's feels that recent double-digit declines in Ford's auto sales are "diverting investors sights from the very attractive big picture."

According to Barron's, Consumer Reports recently rated Ford's portfolio as the highest quality among Detroit's Big Three automakers. Also adding to the picture, Barron's likes that Ford has increased its liquidity position to well over a billion dollars, has planned a new model rollout, is selling secondary assets and is attempting to unify its operations globally.

David Markowitz, of SLS Capital, a large Ford shareholder, told Barron's that if Ford's "forthcoming UAW health-care and wage deals had been in effect" last year, the Company would have reported a $0.57 gain for the year, rather than a $0.17 loss. Additionally, Markowitz sees Ford reporting FY09 EPS of $1.44, more than double the current Street estimate of $0.67.

Trading at 2.2x FY09 estimated cash flow, Ford shares are being valued at less than half its historical cash flow multiple. [BCS]
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