I need opinions on investing in ford (f) tivo (tivo) and sirius (siri).
Im thinking long term.
2006-09-29 07:03:52 · 3 answers · asked by Anonymous in Business & Finance ➔ Investing
ford?....if you have some confidence that ford will turn around like GM....then buy the preferred shares...at least you'll get a fairly nice dividend in the interim...
or buy on the speculation that it'll be the next merger target....
but I'd have a relatively small stop loss on it
tivo? probably be bought out by a telecom/cable....
but if you like tivo, why not buy the manufacturer of its' guts?
sirius? I bought sirius and XM...I feel that they are merger targets and then the remaining one would probably be a takeover target by a telecom/communication company....
long term...
for an auto...TM, HMC and TTM
for tele/cable/communications ...."tower" companies, PLCE [an indirect play on Disney], NOK, MOT, and for a spec play...PLA
check out amex.com , ishares.com, powershares.com fot ETFs that might match your risk tolerance and investment sectors...
for long term holds....and a nice dividend
check
RNE, IAF, IFN, USA, PEO, GIM...
and for balance DBC
2006-09-29 09:06:20 · answer #1 · answered by Gemelli2 5 · 0⤊ 0⤋
F - (Buy) I am long Ford. I think Ford's chances of a turn around are worth the risk. Alan Mulally will be a good CEO, and he did a good job of turning around Boeing. My price target over the next 12 months is $15 / share.
TIVO - (Sell) Tivo has had a nice run this year, and I like their product. Their balance sheet is questionable. I think eventually, Tivo will be absorbed (probably by a cable company), and that is what is primarily supporting the stock price. I don't think speculation of a buyout is sufficient reason to buy a stock, so I would avoid.
SIRI - (Hold) Great product, questionable stock. The only reason I don't have a sell on Sirius is because a think it has some support at its current price level. Sirius has yet to turn a profit, and is probably at least a year away from becoming profitable. The biggest problem with this stock is dilution. They are constantly devaluing the stock by having secondary stock offerings. They are also paying most of Howard Stern's salary in stock, which is the same effect as have a secondary offering.
2006-09-29 14:54:04 · answer #2 · answered by howardrourke 3 · 0⤊ 0⤋
Speaking about Equity Stay out of both, Ford and GM. Unless you like gambling. The stories about "turnaround in GM" have been in the media since mid 90's should I comment on their success rate?
On valuations Ford appears cheap: Price-to-Earnings is meaningless due to negative earnings. Price to Sales is 0.09 versus 0.94 that of an Automotive industry indicating that the stock is deeply undervalued. Price-to-Book is 1.1 vs. the industry’s 1.6 which indicates a discount.
But look up the stock action on September 15th, when the stock plummeted 11% just on the FORWARD LOOKING STATEMENTS!!! this is a story stock now + beta of 2.5 speaks for the riskiness of the deal.
ON THE OTHER HAND!
Ford Motor Corporate Bonds look very attractive. as of now.
here is the issue i like:
CUSIP: 34539CMC3
because they are "fallen angels" (bonds downgraded from investment grade) they yield almost 9%. Hold them to maturity, which makes you relatively immune to the interest rate movements.
potential risk: Ford going bankrupt before January 2009. should i ridicule the probability of that happening?
make sure that semi-annual coupons are reinvested at least at money market yield.
good luck
2006-09-29 19:17:46 · answer #3 · answered by vincent vega 2 · 0⤊ 0⤋