Followers | 689 |
Posts | 143817 |
Boards Moderated | 35 |
Alias Born | 03/10/2004 |
Sunday, May 19, 2019 8:31:19 AM
By: InvestorPlace | May 17, 2019
If you like Ford Motor Company (NYSE:F) stock or the shares of other American-automotive icons like General Motors (NYSE:GM) or Fiat Chrysler (NYSE:FCAU), you should avoid buying them anyway. In fact, I urge you to do so. I’m going to unleash hell on Ford stock, and American cars in general. If you get emotional, that’s your responsibility.
Let’s talk about why F stock has garnered significant interest lately. Since the start of this year, Ford stock has gained 32%, which is remarkable.
But auto sales have flatlined for the last four years. Additionally, ride-share services like Uber (NYSE:UBER) and Lyft (NASDAQ:LYFT) have transformed personal transportation.
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
It also doesn’t help that millennials just don’t care for buying cars as previous generations did when they were young. Millennials are growing up at a time when multiple, private transportation options exist. However, it’s also true that young Americans are comparatively financially strapped.
If they’re going to buy a car, they need a reliable one. That hurts Ford because it’s not the most reliable automaker. That leads me to the first of my many unpleasant points:
American Cars Stink, and So Will Ford Stock
I just have to say it: American cars are terrible. Over the past several years, Detroit has promised it would compete effectively against the Japanese and Germans. I still remember Chrysler’s “Imported from Detroit” tagline. It was a clever, catchy piece of marketing genius.
Unfortunately, it was also pure nonsense. Part of the appeal of owning an American car is that, well, it’s American. Back in my high school days, our principal said that it’s important to buy American cars to support our economy. But it’s equally critical for domestic manufacturers to compete overseas.
I’m sure my principal’s sentiment was repeated across the nation. The fact that people have to resort to patriotism to tout American automakers , though, indicates that American cars can’t compete on quality, reliability or attributes.
Americans Reject Their Own Cars
F stock and American cars in general are emblematic of this great nation’s many problems. They appeal to folks on a superficial basis, but are very weak when it comes to fundamentals.
Look at the politicians who supposedly “serve” their constituents. How many of them personally drive American cars when the cameras aren’t looking? Probably very few.
Exhibit A is President Donald J. Trump. As a tall, rich, (arguably) good-looking white man with a sharp tongue, he obviously appeals to the patriotic crowd. Today, he “drives” an American car because he has to.
But when he was just “The Donald,” he didn’t seem to care too much for domestic rides. Remember that episode of The Apprentice when he showed up in an exotic Mercedes-Benz sports car? How quickly we forget that, at one point, Trump’s most-prized automotive possessions were a Rolls-Royce and a Lamborghini Diablo!
Why, then, should I buy an American car when my own President doesn’t even exclusively buy American cars?
Hard Numbers Condemn F Stock
If you got through all that without cursing, congratulations! You probably dismissed my arguments against Ford stock as subjective reasoning. But now, we’re going to get into the numbers.
Honestly, they just don’t look good for F stock. The last time its quarterly revenue hit a peak was in June 2007. At that time, sales slightly exceeded $44.2 billion. Since then, the automaker has failed to equal that haul, despite our supposedly robust economic recovery.
Compare the malaise of Ford Motor Company stock to its fierce rival, Toyota (NYSE:TM). From an automotive perspective, I’m not a big fan of TM, either. I find their cars intractably boring. But as a business and an investment, it’s doing pretty well, despite the shortcomings of its products.
Toyota’s quarterly revenue peaked in March 2012, with a haul of just under $72 billion.Its top line has been declining ever since. The difference, though, is that TM is climbing back. Toyotas have broad appeal in Japan, the U.S., and Latin America. With its Lexus luxury brand, it’s also capturing some snobby Europeans.
Ford is doing what it does best: give up. With that kind of loser’s mentality, I just can’t trust Ford stock for the long haul.
Even a Tailwind for Ford Motor Company Stock Is Dying!
Don’t think that I’m completely biased against Ford stock. The one area where it excels is big, heavy trucks. In that area, Detroit is currently untouchable.
Sadly, though, this market is fading. Sales of heavyweight trucks last peaked in 2006, shortly before the housing and banking crises.
I’m not sure if the segment will ever regain its prior peak. The entire automotive landscape is changing. What hurts Ford stock, though, is that its Japanese and German rivals have adapted to the changes. Detroit hasn’t, which is why I don’t trust the rally of Ford stock at any price.
Read Full Story »»»
• DiscoverGold
Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Your Due Dilegence is a must!
• DiscoverGold
Recent F News
- AIG names new CFO; Progyny Drops 24% After Losing Key 2025 Contract; Exicure Jumps 190% With Nasdaq Extension • IH Market News • 09/19/2024 10:26:48 AM
- Ford Motor Company Sued for Securities Law Violations - Investors Should Contact The Gross Law Firm for More Information - F • PR Newswire (US) • 09/19/2024 09:45:00 AM
- BMW, Ford and Honda Begin Operations of Vehicle-Grid Integration Joint Venture ChargeScape; Name Joseph Vellone CEO • PR Newswire (US) • 09/18/2024 12:30:00 PM
- Stingray Debuts Karaoke on Ford Vehicles: F-150 Lightning and Mustang Mach-E • GlobeNewswire Inc. • 09/17/2024 12:00:00 PM
- The Gross Law Firm Announces the Filing of a Securities Class Action on Behalf of Ford Motor Company(F) Shareholders • PR Newswire (US) • 09/16/2024 09:45:00 AM
- The Gross Law Firm Announces the Filing of a Securities Class Action on Behalf of Ford Motor Company(F) Shareholders • PR Newswire (US) • 09/16/2024 09:45:00 AM
- Form 8-A12B/A - Registration of securities [Section 12(b)]: [Amend] • Edgar (US Regulatory) • 09/13/2024 08:34:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 09/13/2024 08:30:07 PM
- OpenAI Unveils Strawberry AI Model Series; Boeing Stock Falls 4% Amid Strike; HR Surges 20% on Growth Forecast • IH Market News • 09/13/2024 10:12:55 AM
- Universal Technical Institute and Ford Celebrate 25 Years of Ford's Manufacturer Specific Advanced Training (MSAT) Program • PR Newswire (US) • 09/12/2024 08:15:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 09/12/2024 12:02:23 PM
- Ted Cannis to Retire After 35-Year Ford Career; Andrew Frick Named Interim Ford Pro Leader; Daniel Justo Appointed Head of FCSD • Business Wire • 09/12/2024 12:00:00 PM
- Class Action Filed Against Ford Motor Company (F) Seeking Recovery for Investors - Contact The Gross Law Firm • PR Newswire (US) • 09/12/2024 09:45:00 AM
- Ford Motor Company Sued for Securities Law Violations - Contact the DJS Law Group to Discuss Your Rights - F • PR Newswire (US) • 09/11/2024 12:30:00 PM
- U.S. Futures Drop Ahead of Inflation Data; Oil Rises on Hurricane Francine • IH Market News • 09/11/2024 10:29:19 AM
- GameStop plunges 11% on stock offering, DJT drops post-debate, GSK fails shingles vaccine trial • IH Market News • 09/11/2024 10:25:41 AM
- Southern California Edison and Ford Team Up to Reward Electric Vehicle Customers for Supporting the Grid • Business Wire • 09/10/2024 04:04:00 PM
- Ford Motor Company Class Action: The Gross Law Firm Reminds Ford Investors of the Pending Class Action Lawsuit with a Lead Plaintiff Deadline of October 7, 2024 - F • PR Newswire (US) • 09/09/2024 09:45:00 AM
- Broadcom Down 10% Post-Earnings, UiPath Up 8%; Qualcomm Eyes Intel Assets; Salesforce Acquires Own Company • IH Market News • 09/06/2024 11:59:00 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/05/2024 09:11:52 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/05/2024 09:11:42 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/05/2024 09:11:32 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/05/2024 09:11:22 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/05/2024 09:11:12 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/05/2024 09:11:02 PM
VHAI - Vocodia Partners with Leading Political Super PACs to Revolutionize Fundraising Efforts • VHAI • Sep 19, 2024 11:48 AM
Dear Cashmere Group Holding Co. AKA Swifty Global Signs Binding Letter of Intent to be Acquired by Signing Day Sports • DRCR • Sep 19, 2024 10:26 AM
HealthLynked Launches Virtual Urgent Care Through Partnership with Lyric Health. • HLYK • Sep 19, 2024 8:00 AM
Element79 Gold Corp. Appoints Kevin Arias as Advisor to the Board of Directors, Strengthening Strategic Leadership • ELMGF • Sep 18, 2024 10:29 AM
Mawson Finland Limited Further Expands the Known Mineralized Zones at Rajapalot: Palokas step-out drills 7 metres @ 9.1 g/t gold & 706 ppm cobalt • MFL • Sep 17, 2024 9:02 AM
PickleJar Announces Integration With OptCulture to Deliver Holistic Fan Experiences at Venue Point of Sale • PKLE • Sep 17, 2024 8:00 AM