Is Ford Worth a Look?

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.]

Inspired by his high school economics teacher, Rick Pendergraft fell in love with the markets at an early age. He entered his first investing competition at 17, and opened his first brokerage account before he finished college. At the age of 23, on the third options trade he had ever placed, Rick turned $1,800 into $22,000 in less than a week, when the company he bought became the target of a takeover. He admits it was a stroke of luck, but it was a memorable education as to the leverage that options can provide. After a ten year career in banking, Rick decided to pursue trading full-time. To get his foot in the door, he started out in the sales department at Schaeffer's Investment Research. It was not long before his talent was recognized and he was invited to apprentice under Bernie Schaeffer, one of the top options traders in the world. Rick thrived in his new position and twice received the award for "Top Trader."Rick has developed a loyal following of readers who are grateful for his timely warnings and profitable advice. He is widely recognized as a market expert and has been frequently quoted by Reuters, BusinessWeek, Forbes, USA Today, the New York Times, and the Washington Post. Rick's primary focus is on identifying short and intermediate term rising and falling trends in the major market sectors. His analysis is based on technical factors along with indicators of market sentimentRick lives near Delray Beach, FL with his wife and three children.