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What are your thoughts? Seems like all I am hearing is bad things like they are loosing huge amounts of money, etc. a lot of people are saying things like "Ford will probably file for bankrupcy" and these are ford fans who say this...what are your thoughts on this? And why are they doing so bad? I dont want to start any political flame wars or anything, but I"m just curious as to everyone elses views on this situation.
 

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I'm not a CPA, and I doubt that any of the people on the street saying that are either... meaning take it with a grain of salt. With the all the trucks and SUVs they sell (not to mention all the hundreds of thousands of crown vics, tauruses, mustangs etc.) , it would take a lot to create that kind of situation. They're not making great numbers right now, but within the current economic state of the country that isn't unusual. That's my take on it.
 

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I agree with Silver95Bird. It would take quite a bit for Ford to file bankrupcy. There are too many diehard Ford people to allow anything remotely bad to happen to the company.
 

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i know that for every GM employee, there are 2 former employees receiving benefits. of course it's the right thing to do (im all for the union), but it's killing them financially. ford may be faced with the same.
 

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cyntaxx said:
So you believe what just a couple people say? Please.

For one, ford has a ton of assests, plain and simple. If worse comes to worse they will back off and sell some stuff, shutdown plants, etc to cut costs, it isn't that complicated. "oh but the layoffs" -- show me any major company that hasn't made some kind of layoffs in the last 3 years, its no big deal. It's all a bunch of BS.
 

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Ford will never go under.... Said and Done. This thread should be locked for such nonsense
 

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Ford is too big to go under, I bet the federal government would help them out before allowing them to file for bankrupcy.
 

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So I guess this excludes you since by your own admission you don't apply to any of your set criteria. Heaven forbid you buy Ford stock.

Your ignorant comments lack any sort of factual base, which you probably can't supply in the first place.

If you had actually done any sort of time based industry analysis, you would have said the same thing about the other big two. Lets go ahead and talk about last year shall we, people can do their own research for this current year.

Ford not only under performed against the Standard and Poor, but so did GM. Infact GM stock had hit lows not previously seen by the company. Back to Ford, the low stock prices were directly related to their bonds taking on the characteristics of junk bonds. Yes, their financial position came in to play. This was all a result from when Nasser was removed (moral was low) and then Ford took over and tried to recoup. FMCredit sold $3 Billion in car loans in 2002. FMCredit will never spin off. If they can continue to sell loans, it provides the company with cheap financing and a lower credit risk. This resulted in a temporary bump in their stock value.

At one point in time last year, Ford stock was valued at $6.25 a share, when the market price was reflecting $9. This could be seen by doing a few simple calculations (mainly a Discount Cash Flow Analysis). Taking it to the extreme and looking at the CAPM from that period (9.017), Ford's beta was 1.15 -not very risky. Big timers like you might like a higher beta to provide for any kind of increase in your portfolio. If you want to even touch on this year, mention how Ford stock has performed better against the S&P, NASDQ and DJIA than GM has. The change at Ford isn't going to happen overnight, but the company will rebound strong. If you don't have faith in the company, sell your Lightning and your Thunderbird. And don't try to make it sound like you're Billy Wallstreet when you probably have along the lines of two shares of PSUN stock to your name.





cyntaxx said:
For those of you who think Ford's financial viability is of no concern, go ahead and purchase some of their stock....:rolleyes:

The thread I posted includes discussions being made by people who work or have worked for Ford Motor Company. How many of you here:

A) Work for Ford.

B) Own Ford stock.

C) Have done research on their corporate profile (no, not just what colors the next Mustang is being offered in or the history of MN12s)?

Ford has been down in the dumps for sometime now. You can try to blame it on the soft new car industry, but then why is GM doing noticeably better? When Ford decides to spin off Ford Credit, it may ease the burden on its shoulders. And let's just hope the new F150 sales are as projected or we will see further losses.

I like Ford cars and trucks and will continue to be an enthusiast. But I wouldn't delude myself into thinking that Ford is doing well in the industry.

ShadownDragon: You collect Lord of the Ring swords. I "collect" stocks. I don't go and tell you which "Magic the Gathering" cards are worth more so don't try to lecture me about finance. :rolleyes:
 

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GreenBird said:
I bet the federal government would help them out before allowing them to file for bankrupcy.
I can't believe no one else picked up on that. That's why Chrysler and Harley Davidson are still here.

At the very worst, they'd be bought out by another entity (entities) and the name would probably be retained.

That said, Derek did the analysis, give him the "own" for his one ;) I only have a basic working knowledge of economics, but I watch the Money Gang every day :)D) and a DCFA seems to be a good way of cutting to the core of a business' vitality.
 

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Derek,

I never said I was a stock guru or "Billy Wallstreet." However, I find it surprising that the old addage "oh it's a big company....it'll never go bankrupt" is still be used today. We've seen Fortune 100 companies topple in the last two years.

As per your comments, I agree GM and Chrysler did poorly in the recent slump. However, in the last 3 years, Ford has taken the biggest hit. They saw their stock go from above $50 to the single digits! And although they are the largest corporate-bond issuer, they were just recently put on CreditWatch. Their bonds are only one notch above junk at BBB if I recall correctly. They are under heavy pressure with slumping sales in the light car markets both here and across the pond. They are desperately trying to make their projected sales goal with the new F150, offering incentives from the get-go to stimulate the market. And if you want to talk about last year, Ford bonds traded as if they were actually junk-an astounding six percentage points over Treasuries, a yield of over 10%, to compensate for concerns about the company's finances. It reported a net loss of $326 million one year ago. This year: $25 million, or roughly $.01 per share. Thus it is still in the red.

And again, I don't know why this has anything to do with what I have in my garage? Do you switch between Coca Cola and Pepsi in your refrigerator everytime you purchase either company's stocks? Just because I am hesitant about Ford's financial future does not mean I will stop being an enthusiast of their performance vehicles. I would continue to enjoy my Fords even if the company filed bankrupcy.
 

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Ford will never go under. Right now, they don't even look like they are doing bad. I have 2 Ford plants in my town and they are some of the top selling plants in the country. One is our Fern Valley plant that makes the Explorers and Sport Tracs. The other is our Chainberlin Ln plant that makes the Super Duty Trucks. They chuck all these vehicles out by the hundreds daily. I don't think they would do that if they wern't stable. We also had a Phillip Morris plant that shut down a while back and when they did that Ford took on all the people that lost jobs and gave them a job there. They have been around to long and have done to much for this country to fall back now.
 
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