Ford comes out with the worst profit margin in it's history, 45 different analysts say that it will lose money this year, it will be under the industry, after hours trading dropped stock to $8.00 a share, and yet the stock is going up????? I don't get it.
2007-01-25 04:17:20 · 8 answers · asked by Roy P 1 in Business & Finance ➔ Investing
Simple - it is ripe for a takeover - failing that the government will step in with grants/tax breaks/investments etc.
2007-01-25 04:20:28 · answer #1 · answered by Biz Guru 5 · 0⤊ 0⤋
Its all about making money, that's why I do the opposite to what these analysts have to say about a stock. I will also keep on buying Ford like them.
Just remember back a year ago when analysts said GM was on the verge of BK and the stock was around $19.00. If you listen to them you would have lost out on a 70% return on your money because the price is now at $32.00.
The list goes on, but this is just one example of an analysts report..
2007-01-25 15:26:21 · answer #2 · answered by Grandpa Shark 7 · 0⤊ 0⤋
First, some of that loss is an accounting gimmick, note the word "restructuring" in the news or press release. Second, the company knows that it is in trouble, which is why it is "restructuring"--they are trying to fix the problem. Finally, while we laugh at the old advice, "buy low, sell high"--if Ford fixes the problem, this is about the best time you may have to actually "buy low", so some are stocking up on the stock in anticipation of much, much better things. GM stock did some similar after they hit the floor and management announced some substantial changes.
2007-01-25 04:37:54 · answer #3 · answered by Rabbit 7 · 1⤊ 0⤋
don't discount the dividend aspect. If a stock is pays a decent dividend (right now Ford doesnt) then there will always be a market for it. And, Ford still has long term potential...long term is more than 1 year. If it goes up to 25-30 in 5 years, wouldn't you be glad you got in at 8?
I wouldn't discount Mulally...he's a good man and a good leader. Did wonders for Boeing. But it will take time for him to turn this ship around.
2007-01-25 05:32:03 · answer #4 · answered by digdowndeepnseattle 6 · 0⤊ 0⤋
The number of people that want to sell is less than the number that want to buy.
The stock market is determine by sellers vs buyers.
If I build the car that run on water, and no one want to buy it, I will go broke. If I build a house that will collaps if the winds reach 50 MPH, and everyone want one, I will make a MINT. THIS IS THE STOCK MARKET RULE
2007-01-25 04:25:31 · answer #5 · answered by whatevit 5 · 0⤊ 0⤋
Market is all expectations. It expected worse. No takeover coming. Sell on the news is the old Wall Street saw.
2007-01-25 04:25:09 · answer #6 · answered by vegas_iwish 5 · 0⤊ 0⤋
Stock is like a playing a kite. Pull down, pull down to make it higher a bit by a bit.
2007-01-25 06:17:14 · answer #7 · answered by Dang 3 · 0⤊ 0⤋
perhaps short selling?
2007-01-25 04:24:38 · answer #8 · answered by Wes B 3 · 0⤊ 0⤋