Sep 16 2006

Ford – Value Play?


I have to admit, when I see what has happened to the share price of a stock like Ford (F), I start to take a bit of notice. Although I do not follow the auto industry very closely, it has been pretty hard not to notice all the crap that Ford has been going through. In the past week alone, they have announced that they will be cutting some 14,000 jobs, closing plants, and most importantly to me, cutting its dividend.

That last move simply makes me want to stay far away. It is not like they simply did not choose to raise the dividend, they are STOPPING the payment of their dividend. When one reads between the lines on this, there is simply not enough earnings being generated to warrant a dividend payment and that is trouble. And no earnings means poor share performance in my mind. I am not going to dip, no matter how low it goes


TAGS:

6 Comments on this post

Trackbacks

  1. Pierres Service » Blog Archive » ford - value play? wrote:

    [...] ford – value play? … closing plants, and most importantly to me, cutting its dividend. … raise the dividend, they are stopping the payment of their dividend. when one reads … there is simply not enough earnings being generated to warrant a dividend …Read more: here [...]

    November 29th, 2006 at 9:54 am
  1. WITY said:

    I absolutely agree about F. Best to stay away from any perspective. From a dividend investor’s point of view even more so.

    But this makes me wonder – how do you reason being long GM, which seems to me to be in just about the same situation?

    September 17th, 2006 at 7:32 am
  2. finance girl said:

    Yah, I saw the same thing in this morning’s WSJ. Can you imagine having to be an employee in the Detroit Big 3 right now? Talk about depressing, not only is your company in crisis but your own holdings are tanking (e.g. Detriot area real estate, employer stock, etc.)

    September 19th, 2006 at 10:06 am
  3. Tom said:

    I live in Michigan and it seems like every company is being effected by these stupid automakers. Our economy is horrible and it’s very tough to find a job around here seeing every other job is manufacturing/automotive related. Michigan is in a lot of hurt for the next 5-10 years. That’s why I’m moving out this state.

    September 19th, 2006 at 4:28 pm
  4. G said:

    I would be will to take the risk, if you have a long time to sit on the stock. If this management plan works, it could mean big profits in the future for Ford.

    September 20th, 2006 at 7:06 pm
  5. Alaska 49 said:

    I took the risk…at 1,50 a share…had a free trade and a little extra cash sitting in my IRA…..and it has been my best investment to date.

    January 1st, 2010 at 8:22 pm

LEAVE A COMMENT

Subscribe Form

Subscribe to Blog

Recommended Book

Read Rob Carrick's 's Book - an author that has mentionned this blog in the past

My Broker

Questrade
Democratic Pricing - 1 cent per share, $4.95 min / $9.95 max

Keep Up-to-Date

twitter1gif
newspaper_feed_128x128

The Dividend Guy Sponsors

The Div-Net

Investment Links

Online Dividend Calendar

Friends of The Dividend Guy



Provident Loans

Invoice Discounting - Hitachi

credit cards

Need emergency cash and can't wait for your paycheck, get a payday loan and have the funds transferred overnight

Mortgage Brokers at Savills Private Finance

Debt Management

Personal Bad Credit Loans for every need and budget.

Get Out of Debt

Emergency Cash

Loan Insurance Claim from Keypoint

payday loans

Borrow payday loans UK online and receive up to £500 for your next payday loan

The Bettertrades stock reviews , online discussion forums and trading software can help trader earn rich dividends from stock market.

Bankruptcy is a serious measure - seek expert debt advice on various debt solutions available.

Networks

Seeking Alpha Certified


Money Hackers Network

Get Out of debt

If you're stuck in debt and trying to get caught up, don't resort to payday loans. They almost always have high interest rates, so if you don't pay them back immediately you will just end up in even more debt. In these tough times, it's better just to learn how to be more frugal with your money.

Twitter Posts

Powered by Twitter Tools

Disclaimer

Any information shared on The Dividend Guy does not constitute financial advice. The Dividend Guy is not a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities readers or customers should buy or sell for themselves. The Website is intended to provide general information only and does not attempt to give you advice that relates to your specific circumstances. You are advised to discuss your specific requirements with an independent financial adviser. For more information, click here. All posts are © 2005-2009, The Dividend Guy.