Ford Stock $2-3 dollar gold mine?

**disneysteve** · 10-14-2008, 01:57 PM

I asked this question a few days ago:

Saving Advice Forums

http://www.savingadvice.com/forums/investing-banking/41358-what-do-you-think-will-happen-us-automakers.html

**jIM_Ohio** · 10-14-2008, 01:57 PM

GE and MSFT are both better buys right now, IMO.

MSFT is $24
GE is $21

**Zillionaire** · 10-16-2008, 08:18 AM

Beside sharebuilder wherelse should be recommended?

**Broken Arrow** · 10-16-2008, 08:24 AM

Please remember that what's cheap isn't always a good buy.

**tripods68** · 10-16-2008, 08:50 AM

Originally posted by amarowsky View Post

I have been hearing people from Work, at the store, and around the neighborhood all start raging and talking about buying a ton of Ford stock right now is going to make them millionaires(not literally). Granted it's at an incredibly low price, but What are some others thoughts about this stock right now?

Does Ford pay dividends?

Are they going to merge with another company?

Will the stock turn around anytime soon?

Do you think there will be a better time to buy?

Anyone got some Information / Opinion / or Facts then I'd be happy to hear them.

I'd like to capitalize on a possibly excellent opportunity or avoid a catastrophic nightmare!

You can day trade this stock all day long in 2 or 3 range. But unless you are willing to lose a lot of money, avoid this stock completely, or buy something else with a better outlook/upside potential.

Just my .02 cents.

**sweeps** · 10-16-2008, 08:58 AM

I think F is a good buy at $2. If I had some money to burn, I'd buy and then sell it at $6, tripling my investment.

**Broken Arrow** · 10-16-2008, 09:05 AM

Originally posted by sweeps View Post

I think F is a good buy at $2. If I had some money to burn, I'd buy and then sell it at $6, tripling my investment.

That may well be true. On the other hand, it's also capable of dropping below that, say, in the $1.25 to $1.50 range. Even in the $1.50 range, that's a 25% loss that requires a subsequent 33% gain to just to break even again.

It just depends on its economic outlook. I haven't looked at it much, beyond what was originally discussed, but I suspect it's going to get worse before it gets better.

**Coleroo** · 10-16-2008, 09:18 AM

i sure as heck hope that is true...lol. I bought into Ford stock on my own in the spring of last year when the price was $8 per share! It was more of an emotional thing than anything....i kept hearing even back then that Ford was going to go bankrupt. I felt that Ford wasn't going anywhere. So i bought. Dumb timing, huh... but now i hope that they DO go back up so i recoup my loss.

I still dont *think* they're going to completely disappear. Not Ford...no way. They may have made some bad decisions, but everyone still needs cars, no??

As silly as it sounds, if I had more money I would buy more Ford now because I believe in them. lol

**disneysteve** · 10-16-2008, 11:23 AM

Don't feel bad Coleroo. I bought Ford, too, though I paid $5.13. I dumped it last week.

**Broken Arrow** · 10-16-2008, 11:44 AM

You know, from a trading perspective, I say it's a good idea to sell right now. Our economic climate overall isn't looking all that great. In fact, the "R" word, recession, is making the buzz around the campfire. Plus, Ford's own guidance is saying that they don't expect to make headway until at least 2009 (and you know guidances tend to be on the optimistic side).

Longer term? Yeah, I think they'll still be around. As I have mentioned in the original threads, they have models that appears to be doing well. The Fiesta in the European is doing well, and the Ka looks very promising in India.

So, for those who like this stock and don't mind riding this one further down the road, I say averaging it down right now at $2 something isn't a bad idea at all.

Personally though? I have yet to buy into this one, and I don't think I'll be doing so anytime soon. I don't mean to be rude or anything, but just because a company won't go belly up, doesn't necessarily mean that stockholders will still make money. But perhaps it will if given enough time.... If it was up to me, I'd rather free that money up and pursue other opportunities than to sit and wait, but again, that's just me.

**pfblueprint** · 10-17-2008, 04:46 AM

They could always declare bankruptcy, restructure their debts and continue to operate, but owners of stock would be hosed. I don't think they'd ever fail, but they can easily go into bankruptcy protection. It's a crazy world now... place your bets wisely.

**kork13** · 10-17-2008, 06:10 AM

Originally posted by Broken Arrow View Post

In fact, the "R" word, recession, is making the buzz around the campfire.

Recessions are technically defined as 2+ consecutive quarters of negative GDP growth. But we have yet to see a single quarter meeting this criterion. ...??

There are other indicators for recessions, some have been observed, others are not as definite. So what's the deal? Is the 2 quarter definition simply too high a standard? Or are we really not in recession and people are just freaking out?

**Broken Arrow** · 10-17-2008, 06:23 AM

Yes, I am aware that Recession requires two negative quarters to qualify.

However, in terms of forecasting the likelihood of a looming recession, this article suggests that we are indeed meeting those key indicators.

For reference, here's NBER's four indicators.

I'm not saying that it will or will not. Just that it's what's being talked about. Actually, I've also heard that some institutional investors have already been over-weighing their cash positions because of this. Even for main street traders, it would be far too late by the time our government declares a recession.

**cschin4** · 10-18-2008, 04:29 AM

There are no guarantees. Dropping stocks can continue to drop. The world as we know it has just undergone a significant and last change. There are going to be adjustments. Ford may or may not make it into the future. If I were buying stocks, it wouldn't be one of my top picks.

Ford Stock $2-3 dollar gold mine?