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Ford Motor Co. Stock Plummets... Dividend Cut?

YOLO

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What the heck is going on with Ford?

I'm waiting to order a New 2019 GT350 and I see Wall St bitching about the collapse in stock price and a dividend cut of 30%.

https://www.fool.com/investing/2018/08/12/why-im-worried-about-ford-motor-companys-6-dividen.aspx

I'm not a Ford guy but love the GT350 so I haven't been keeping up with FORD.

I like their pickups and thought they were selling well, but they are damn expensive. $50,000.00 don't get much truck today.

I do know they recently said they were cutting the car production models and only going to have the Mustang and one other car available. That sounds nuts.

A $100k investment nearly 20 years ago is today worth Less than $25,000.00, damn.

In 2009 the stock hit $1.65 per share.

In 1999 it was over $37.00 share and today we closed at $9.46 and going lower. The analyst said $7.00 level is next.
Ford Chart.png
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320guy

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Time to buy and wait!!!!!
 
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Time to buy and wait!!!!!

Need to see what the GM chart looks like.

Don't try and catch a Falling Knife, the stock hit $1.65 just 9 years ago.

I'd still like to know if anyone knows why the stock is doing so bad when it seems like their Trucks and new Mustangs are doing well?
 
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Damn, just checked GM. Down 25% in the last year. WTF?

https://www.nasdaq.com/symbol/gm/stock-chart

Are car sales that bad?

Edit: I was wrong. Price of GM stock is down almost 25% the last 2 months (since June). Holy cow! What is going on with car companies?
 

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I'd still like to know if anyone knows why the stock is doing so bad when it seems like their Trucks and new Mustangs are doing well?
No matter what happens to the Mustang's roughly 100,000 annual sales, it's only noise in Ford's roughly 2.5 million total U.S. sales. Don't know anything about the truck side except that it's supposedly a lot more profitable per unit.

Could be some investors are uneasy about Ford phasing out their sedans (making the company something less than a full-line auto mfr). No idea about what's happening with GM.


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Need to see what the GM chart looks like.

Don't try and catch a Falling Knife, the stock hit $1.65 just 9 years ago.

I'd still like to know if anyone knows why the stock is doing so bad when it seems like their Trucks and new Mustangs are doing well?
True but don’t you Only Live Once???
 

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Their products are going to shit and they are gutting nearly the entire car line. I would not invest in a company that can't even make A/C that does not last or cooled seats that don't work.
 

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Damn, just checked GM. Down 25% in the last year. WTF?

https://www.nasdaq.com/symbol/gm/stock-chart

Are car sales that bad?

Edit: I was wrong. Price of GM stock is down almost 25% the last 2 months (since June). Holy cow! What is going on with car companies?
One probable cause would be the tariffs. Also the trade war with China and trade tensions elsewhere. And not to make this political, as I frankly don't care, but there are those (outside the US) who refuse to buy anything American while Mr. T is in power.
 

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In 2009 everything in Detroit tanked and Ford did not get a bail out. Currently, I would say the trade wars and tariffs are dragging the stock down. Also, I think wall street has a negative view as Ford has not positioned themselves well in the future of electric cars (something no one really cares about in this forum!)
 

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Stocks go up and down. The experts say it's a lack of an overall plan at Ford and them getting out of cars. Makes sense to me. It doesn't take much to generate some negative movement on a stock price. Many of the people who buy stocks will buy or sell on a whim. They don't buy low and sell high, they panic and sell when a stock is going down and they buy what is popular (and expensive).

The behavior of individual stocks says a lot about human nature.

The quality of individual cars or tariffs or our president don't make sense to me as reasons why an individual American stock would go down. The news media tends to write things that don't make sense - if you analyze proposed tariffs they are small relative to the volume of transactions made by the countries. They are just a tool Trump is using for negotiation. About time we had someone working for the American people and negotiating better deals for us rather than just using the opportunity to line their own pockets.
 

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Was Ford stock EVER an “investment” stock?? I mean c’mon, the Ford Family controls it...
 
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Was Ford stock EVER an “investment” stock?? I mean c’mon, the Ford Family controls it...
Yep, and the Ford family makes over $100,000.00 per DAY in dividends alone, ($40 Million per year). That's a lot of Shelby GT350R's, lol.

This analyst says to sell Ford now: https://seekingalpha.com/article/4200124-ford-continues-value-trap

Summary
Ford's Automotive division was barely profitable in the second quarter.

Ford will continue to post profits at the corporate level owing to solid results at Ford Credit, but I see no fix in sight for the Auto profitability woes.

Ford's 6.3% yield is enticing, but I think Ford shares are a value trap.

Editor's note: Seeking Alpha is proud to welcome Jim Collins as a new contributor. It's easy to become a Seeking Alpha contributor and earn money for your best investment ideas. Active contributors also get free access to the SA PRO archive. Click here to find out more »

As Ford (NYSE:F) shares continue to plummet to new multiyear lows, the 6.3% yield is a powerful inducement for someone who runs an asset management firm with an income-based strategy, as I do.

It's not worth it. Ford is a classic value trap, and you should avoid the shares.

My conviction on Ford as a "sell" is a product of my background. I spent 11 years working for investment banks - Lehman, DLJ and UBS - as an autos analyst. I was a cub analyst in August 1993 and I remember Ford trading at just under $10 per share then. And 25 years later, that is still where the Blue Oval resides.

Yes, there have been many dividend payments in that 25-year period, but it is just extraordinary that the Ford family and their chosen executives have not been able to create a penny of share price expansion.

The time to buy auto stocks is when, to paraphrase Rothschild's famous quote, there is blood in the streets. The economies of the Western world are not in that position today. We're past the sales peak, but not into a meaningful sales decline, and this is the point in the cycle where auto stocks tend to be ignored - by both shorts and longs.

But Ford's share price performance cannot be attributed entirely to group rotation away from the auto sector. Ford shares have fallen 23.9% year to date, while General Motor's (NYSE:GM) have fallen 11.5%, and Fiat Chrysler's (NYSE:FCAU) have dropped 12.5%.
 
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Jim Cramer said Ford was a Buy 9 months ago at $13.00 share: https://www.cnbc.com/2017/12/06/cramers-lightning-round-ford-is-finally-ok-to-buy.html

Now it's in the $9's and headed to $7.00 :giggle:
That talking head? He has to say something... say enough "things" and you are right 50% of the time. Unless you are really dumb, but cramer is not dumb... just a talking head.

Ford will more than likely go up (the alternative is dreadful).... then cramer will be "right"...

I think Ford is going through a transition so the stock will take a hit. That is normal. Same as apple many moons ago and see how that turned out. I would not bet against Ford.... although, they seriously need to look at upping the game in the quality department...
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