Ford Motor Company (F)

[farooq]

Here are few reasons Ford does not act as it should be .
All higher paying DIVDEND stocks are bought about 2-3 weeks ago and then sold. Ford currently paying about 1 % qtrly so big money buy at the price then need to sell after div. Since they know they will be big seller so they short also. so here you see they are selling inventory plus and they are covering shorts. Go back and see chart if it make sense. Once they sold inventory and covered short it will move up or down on market perception of future earnings.
Ford need to invest 10 Billion dollar to buy back stock and reduce float.
We have doubled the number of share before crisis; We gave 1 or 2 Billion shares to Union part of medical coverage for legacy employees. It can be reduced and earnings look better which will take care of PPS (price /share).
High div mean company has no potential to grow that's why there are giving back money which is double taxed.
Mature business do give some profits back to share holder but they should not give back more then 33 % of earnings where as Ford was giving 60% of current earning so at these earnings it is little undervalued. Berkshire Hathaway Inc. has not given back a single penny to share holders because they are not short of idea there earning /share is about 10925 $ per year. I bought it when it was $ 5500.
Why they give huge dividend because Ford family lives on it there preferred share pay way high div.

Good luck and happy trading.