Tell me why Ford isn't a good buy right now ($8.04)...

[destro]

3d Q Results

25 year

5 year

[alekhine8]

1) Lost money in Q3 (although it looks like they still have positive cash flow).
2) Well-documented pension and postemployment cost problems that eat into their margins.
3) Product mix focused on SUVs and trucks over the last decade leaves them poorly positioned with prolonged high gas prices.

I wouldn't buy them because I think their cars are pretty medicore. Their financing divsion makes all the money, and if I want to own a financing company, I'll go buy a bank or something else.

That being said, I think you could do a lot worse. They'll probably be able to avoid bankruptcy and have a 4% dividend yield that they should be able to keep paying out.

[JTrout]

[ QUOTE ]
: Tell me why Ford isn't a good buy right now ($8.04)...

[/ QUOTE ]

It's a car company. Avoid all.

[DesertCat]

[ QUOTE ]
3d Q Results

25 year

5 year

[/ QUOTE ]

Ford's blue collar workers cost an average of $100 per hour (wages + overtime + pension + healthcare + job banks for anyone Ford lays off).

Toyota's (and every other non UAW auto companies) blue collar workers cost around $30 per hour.

There isn't a management team in the world that can succeed with that type of handicap. Ford is inevitably headed to bankruptcy.

[Dan Mezick]

Here's one good reason.

2-year downtrend in Ford Stock

Avoidance indicated until it closes above 10 or so.

[midas]

Why don't you tell us why Ford is a good buy instead of pointing to a bunch of meaningless charts. For good measure, please include in your argument a discussion of future earnings or cash flow, new products, union wages, retiree liabilities and how all these factors relate to the overall valuation of Ford and the current stock price.

[bob2007]

stocks are based on expectations, and trends IMO.

Industry trend is bad, lookat GM, oil prices are high, lookat their employee pricing model, how can that be good? I think ford is doing it too... so I suppose its a price war. Car idustry has been known to suck for many years.

It's got a bad rating from S and P.

What's to like. Why go bottom fishing. There are many more stocks out there.

[Sniper]

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On a pre-tax basis, [Ford's] worldwide automotive losses in the third quarter were $1.3 billion, a decline of $732 million from a loss of $609 million during the same period a year ago.

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Bottom line... looks poor from both a technical and fundamental perspective.

Ratings from a few stock graders...
IBD Stock Checkup = D-
Navallier Stock Grader = F
Market Edge = Avoid
Argus Rating = Sell

Here's Goldman Sach's latest research note...

[ QUOTE ]
Ford (U/C)owngrading to U/C; expect revenue and cost pressures to intensify across most businesses
October 21, 2005

Our downgrade to U/C reflects five key factors: (1) We see mix and volume headwinds in 06 from lower SUV and pickup sales offset only slightly by car volume gains; (2) FMCC earnings will likely continue to be pressured by higher interest rates and a possible headwind from loan loss provisions; (3) Falling long term rates imply higher 06 pension/OPEB expense; (4) Tax benefits worth about $0.25 in 05 are unlikely to repeat; (5) Our new 06 and 07 ests are about 50% below prior levels and we now see material downside to 06 consensus ests. Headcount cuts, likely UAW healthcare concessions and other cost saves may offset, but will likely do little to rectify, most of the pressures weve enumerated. Many of these stresses were evident in 3Q, which came in below our est. We also expect little upside in 06 from restructuring plans being formulated. We see fair value for Ford shares at around $6.

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[Note: U/C = Underperform/Cautious]