Ford (F) Now Too Good to Pass Up?
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Price: $14.69 -0.14%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 5.8%
Revenue Growth %: -3.0%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 5.8%
Revenue Growth %: -3.0%
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If you've missed out on picking up some Ford (NYSE: F) stock, it looks like someone has smiled down upon you for a second, third, and fourth time.
Shares of Ford are down almost 2.5 percent on the session, bringing it to lows not seen since last October...a staggering 8 or so months ago. The last time Ford touched below $13.05 (today's low), was on October 6, 2010, when it hit $13.04.
Ford has been on somewhat of a downward trend since reporting a fourth quarter miss in late-January...shares are down roughly 26 or 27 percent since then.
So the question is, is now the buying opportunity?
Recently, Ford announced such items as finalizing a joint venture in Russia, and even looked at increasing production by 50 percent within the next few years, not to mention reinstatement of its dividend.
Those announcements haven't really rocked the boat or broke the trend on the stock yet.
Furthermore, crude prices, which were a major headwind for the company at over $100/bbl, are well off their highs (now $95) yet the stock doesn't react.
Ford's current forward P/E is 6.5x, compared with 5.9x at General Motors (NYSE: GM) and 12.4x for Toyota Motor (NYSE: TM).
Some believe sales numbers might come in lower than expected, not only against tough comps in 2010, but because those that are going to buy a car already have, and probably won't for another few years. This seems like a far-fetched idea, considering that Ford is making positive steps in emerging markets like India and China, while building factories there to support growth. Though the countries prefer smaller, low-margin autos, sheer volume should be able to sustain the top-line while Ford works on cost-cutting and other measures to bolster its bottom-line further.
So, if you believe in Alan Mulally and his team, along with prospects for continued global economic recovery, this may just be the opportunity that you have been waiting for!
Shares of Ford are down almost 2.5 percent on the session, bringing it to lows not seen since last October...a staggering 8 or so months ago. The last time Ford touched below $13.05 (today's low), was on October 6, 2010, when it hit $13.04.
Ford has been on somewhat of a downward trend since reporting a fourth quarter miss in late-January...shares are down roughly 26 or 27 percent since then.
So the question is, is now the buying opportunity?
Recently, Ford announced such items as finalizing a joint venture in Russia, and even looked at increasing production by 50 percent within the next few years, not to mention reinstatement of its dividend.
Those announcements haven't really rocked the boat or broke the trend on the stock yet.
Furthermore, crude prices, which were a major headwind for the company at over $100/bbl, are well off their highs (now $95) yet the stock doesn't react.
Ford's current forward P/E is 6.5x, compared with 5.9x at General Motors (NYSE: GM) and 12.4x for Toyota Motor (NYSE: TM).
Some believe sales numbers might come in lower than expected, not only against tough comps in 2010, but because those that are going to buy a car already have, and probably won't for another few years. This seems like a far-fetched idea, considering that Ford is making positive steps in emerging markets like India and China, while building factories there to support growth. Though the countries prefer smaller, low-margin autos, sheer volume should be able to sustain the top-line while Ford works on cost-cutting and other measures to bolster its bottom-line further.
So, if you believe in Alan Mulally and his team, along with prospects for continued global economic recovery, this may just be the opportunity that you have been waiting for!
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