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Sunday, February 12, 2012

February's Top stock to buy - Ford ( F )

FORD ( F ) is a value stock.Ford Motor Company (Ford) is a producer of cars and trucks. Ford and its subsidiaries are also engaged in other businesses, including financing vehicles. It operates under two segments: Automotive and Financial Services. Automotive segment includes the operations of Ford North America, Ford South America, Ford Europe and Ford Asia Pacific Africa.Only US automaker that didn't get bailed out. Great brand, modernized products. Seems to get it ?American company has transformed itself from a wrecked has-been to a focused, disciplined, and profitable leader of the global auto business.PEG of .7, $20 billion in cash, and a powerful brand name with several products that thrive as fleet vehicles, like the Crown Vic in the past and the Transit van for NYC's new taxis.The actions that the company leadership has taken over the past several years have set them up well for continued growth over the next several years. With the stock fluctuating between $10-12 a share, recently this looks like a solid time to buy into this company; as additional analysts begin paying attention to the stock over the next several months look for it to rebound to my target share price of 18.00 a share by year end 2012.Ford is well positioned and widley bought for fleet use in the US.Ford's ace CFO, Lewis Booth, announced his retirement on Thursday, as did Global Product Development Chief Derrick Kuzak. That's the guy who brought Ford's balance sheet under control and the guy who drove the "One Ford" product strategy that turned the company around -- gone ! Ford's trading at about 7.7 times earnings. Even with Ford's ongoing challenges .A hybrid version of its popular Fusion sedan has been a steady seller, and a plug-in version is coming year in 2012.That long list doesn't mean Ford has no challenges ahead. Overseas operations, particularly in Europe (but also in Brazil) will continue to weigh on earnings for some time -- though Ford is making progress with most.With the Recession ending sometime soon (hopefully) people that were scrimping and saving during the Recession will have more money to spend on luxuries like new cars. Ford didn't take the government bailout and because of that, still has a good reputation and more credibiltiy than it's direct competitors .Ford Has established itself as the top of the line truck brand and is still cheap in terms of price to earnings.With Ford Strong cash position, diversified international assets, & on the rise in an industry waiting to pop as people look to replace aging cars as the economy gradually improves.  Only concern is europe but either way in the long run this stock will outperform the s&p since both will be dragged down by the Euro if it does collapse.This company has turned a corner. undervalued stock below 12.00 a share.USA should be Proud of Ford and all it's done to prove itself. Short at your own risk.I am a believer in American history and proud of this car manufacturer.Thanks for giving me confidence in the American spirit again. Go Ford & Buy ( F ) Stock this month!

1 comment:

Value Stock Plays said...

Now heres a stock that deserves a compliment. The stock traded at only 1 dollar in 2009 today its trading at over 11 dollars.