You may remember the old acronyms for Ford: "Found On Road Dead" and "Fix Or Repair Daily." People used them to make fun of the reliability problems Ford had in the past. But they could also apply to Ford’s stock in recent years.
Since 1998, Ford has dropped from a high of $38.63 and is now trading under $5 per share. The last time Ford was this low, in 1991, some of my colleagues weren’t even old enough to drive.
At this point, the market cap for Ford is a paltry $10.13 billion. However, the company has over $25 billion in cash on the balance sheet. Granted, they have tremendous debt on the balance sheet as well, but they have more than $11 in cash per share.
I am not saying you should rush out and put all your available funds into Ford stock. But for a long-term investment (5-10 years), Ford looks like a bargain at this point.
There will be more bumps in the road, but I can’t see the government allowing Ford or General Motors to go under. These are the last two publicly held U.S. automakers, and politicos don’t want to see either of them fail.
There is one more acronym for Ford that I didn’t mention: First On Race Day. The race could be a long one, but in the end it could pay off for patient investors.
[Ed. Note: Despite what you may think, investing doesn't have to be super-complicated. In fact, once you learn a simple trading secret from professional trader Rick Pendergraft, you may find that making money is easier than you ever imagined.]
Similar Articles:
- The Next Bailout Is Old News – After the recent bailout of AIG, Freddie Mac, and Fannie Mae, investors are wondering if the Big Thr…
- A Little Speculative Play Could Pay Off Big – The market has been getting absolutely clobbered for the last year or so. Some very big names are tr…
- Know When to Say When – We have all been there… Sitting at a bar, head in your hands, you’re wondering how it happened. Ho…
- Over Three Billion Served – Trading volume can be used as an indicator of changes in the market. Volume can tell you if a trend …
- Make 2009 Your Best Year Ever – Resolution #7: Follow the Cash – For many years, bankruptcy rates of companies on the major stock exchanges were so low you could cou…
- Dear ETR: How Do Bailouts Affect Stock Prices? – “In his article entitled ‘Financial Word of the Week: Bailout,’ Charles Delvalle said that if a pers…
- Bolivia’s “Road of Death” – Your seatbelt isn’t going to do much for you if you get into an accident on Bolivia’s Nor Yungas Roa…