Ford has refinanced alot of its debt, and forged new deals with the UAW. It’s in much better shape than it was a year ago, IMO. And much better shape than the other two. Ford has had success to date dealing with stakeholders to implement needed structural changes. No reason to think this wouldn’t continue, especially with Ford’s global product successes.
If you check the chart on Ford you will see that the heavy buying started in early April. This is when the institutional gang started calling their most important (biggest commission generating) accounts to give them a ‘heads up’ about the coming upgrade in the stock. Goldman is targeting more gains throughout the year in setting a six-month price target of $6 a share.
“Our call is driven by the almost unprecedented structural change facing the industry, which we think will redefine Ford and GM profitability,” analyst Patrick Archambault wrote in a note to clients. He explained that Ford, which has avoided a government bailout up to this point, will get a boost in market share due to the “diminished presence” of both General Motors and Chrysler following likely bankruptcies in the coming weeks.
I think Ford has been making the right move by staying financially healthy. They also now have fewer brands than GM globally. They put global car programs into the works soon after Mullaly came in and are much further in the process. They also seem to have their focus on quality as evident from Consumer Reports. Ford is a winner. Check out for FREE by entering F below and getting an updated analysis of the company via e-mail.
UPDATE: Earnings are out..Ford posts $1.4 billion 1Q loss, burns less cash
Ford posts $1.4 billion 1Q loss, burns through less cash while restructuring without gov’t aid Ford shares are surging this morning to $5.25 in pre-market
