Ford: 'Selling like hotcakes'

The automaker offers one of the market's best combination of value , safety and upside potential.

By MoneyShow.com Sep 27, 2013 4:18PM
Ford 2011 Explorer © Toby Talbot, AP PhotoBy Briton Ryle, Wealth Daily

They cost between $24,000 and $53,000 each, and they are selling like hotcakes. One sold every 38 seconds during the month of August. No, not Washington lobbyists; I'm talking about F-series trucks.

Yep, the era of great American automobiles is back — and it's being led by the greatest of the American car companies, Ford Motor Co. (F). Of all the car-makers, Ford has posted the biggest gain in sales this year, up nearly 13% over 2012. Total car sales are up 8.5%.

This isn't an underdog story about overcoming long odds to find success. No, this is an American story of hard work and innovation. This story could also be worth a quick 42% profit for you over the next few months.

Ford never took any TARP money during the financial crisis, even though car sales fell 43% in 2009. It didn't declare bankruptcy, either, despite losing $14.6 billion in 2008 and burning through $3.7 billion in the first quarter of 2009.

In part that's because CEO Alan Mulally raised cash in 2006 when times were good. It was enough to get Ford through, but it didn't make the company successful today.

What sustained Ford was, well, sustainability. Former CEO Bill Ford believed that Ford's cars needed to become more fuel efficient. He also made his manufacturing processes more environmentally friendly. And he saved money doing it.

Now that gasoline has gotten much more expensive, Bill Ford's demand that his cars become more fuel efficient is paying off.

So was his decision not to cut research and development for engineering and new technology, like electric plug-ins and hybrids in 2008 and 2009. It's easy to see the result in the mid-size Ford Fusion. U.S. News and World Report calls the Fusion the "Best Car for the Money."

Fusion sales are up 13.4% this year. In some cases, Fusions are selling in 20 days — three times faster than the industry. Ford will sell 300,000 Fusions this year, and it might even wrest away the #1 spot from the top-selling Camry.

Ford was ahead of the curve when it came to improving gas efficiency, and it's ahead of the curve when it comes to the next technologies.

Ford delivered its best August electrified vehicle sales ever with 8,292 sales, up 288% over August 2012 (for comparison's sake, Tesla sold 6,500 cars in 2012).

Ford's plug-in hybrids, Fusion Energi and C-MAX Energi, delivered their best sales month year-to-date, with 600 and 621 units sold, respectively.

Ford C-MAX Hybrid sales jumped 12% in August over the previous month, with 3,032 units sold. Nearly two-thirds of the hybrid sales came from conquest buyers, people who traded in other car brands. Highest on the trade-in list? Toyota Prius and Honda CR-V.

So far this year, Ford's stock has increased more than 25%, and the stock is still extremely cheap. It trades with a forward P/E of just 10. It has made $8 billion in operating profits for four straight years.

It recently raised 2013 estimates, and I think Ford will raise its 2.4% dividend in October. But there's another catalyst poised to push Ford shares higher: Europe.

Ford lost $1.7 billion in Europe last year, and it thought it would lose $2 billion to the eurozone recession this year.

But Ford is gaining market share there -- and has already cut its 2013 loss estimates by 10% to $1.8 billion. (I expect the loss will be even less than that.) Those savings go right to the bottom line.

Right now, I think you should own Ford stock. It has one of the best combinations of value, safety, and upside of any stock on the market.

In fact, I think the stock has real good shot at hitting $25 over the next six months. You can enjoy some excellent profits, as well as cheer for a great American company.

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46Comments
Sep 28, 2013 8:43AM
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FORD! The company that DIDN'T need a government bailout!


Sep 28, 2013 5:04AM
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FORD
a company the government was unable to screw up.
Sep 28, 2013 11:55AM
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Alot of people don't know that Henry Ford & Ford Motor Co. Helped build the backbone of our country. Very proud of Ford & what they are doing. Long live Ford Motor Co.
Sep 28, 2013 11:02AM
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At least there is one thing americans can be proud of.
Sep 28, 2013 12:51AM
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Proud to say I bought Ford Stock 8 years ago when my son, a money manager, begin managing my money.  He knew I loved Ford Cars, so felt that I should own Ford Stock.  Been up and down since, but trend has always been steadily moving up.
Sep 28, 2013 12:00PM
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I would really love to buy a new Ford.But i can't afford a new car. Oh wait a minute, i'll do like our government & go ahead & spend the money anyway!
Sep 27, 2013 4:25PM
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Serve me up some more of those hotcakes and syrup, Mawd....

 

Plus tell them to raise the dividend some more too.

Sep 28, 2013 6:25PM
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                                     "THIS IS FORD COUNTRY"

 

FORD Motor Company:  who's stock fell to $2.82 per is now hitting the $17.00 mark

                       

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Screw the "Bailout Bitches", NEVER again will I own a GM or a Chrysler product, ............. being in business for me equals the complete and absolute requirement of making profit and the inability to ignore a union snake of of my own manufacture until the rube customers, already handily overcharged for a product are forced by a bought and paid for government shill to ride in to rescue me ............ FROM ME!
AMERICA .............. ALL RULES AND LAWS HAVE TO BE IDENTICAL FOR EVERYONE OR IT IS A CORRUPT AND UNLIVABLE SOCIETY!

Sep 28, 2013 2:26PM
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I'm certainly not against Ford, have had several cars and trucks, same with GMs and a couple of Chrysler products even some that are extinct now.

Have worked for GM or Fisher Body..

And invested in Ford...

Yeah, I want to see all of them do well...

Sep 29, 2013 3:31AM
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I bought Ford stock at $7.00 a couple of years back, rode it to $18.00, then watched it fall back to the $13.00 range. I sold it all, when I saw they paid Mulally $50 million a year. As an investor, I invest, (or try) to invest in good well run companies. I don't invest in companies paying out huge bonuses and pay packages for the execs. I drive a f 150, have had it 8 years, and want Ford to succeed, but I won't invest in a company paying 50 mill to the boss.

 

  That's the problem with America, paying the top dogs way too much, and the actual workers just getting by. I am an investor in America, and I want all Americans to succeed, as well as the companies they work for. Some critics will bash me, saying Mulally deserves that much, as he paved the way for Ford. He could have easily paved the way for Ford at 10 mill a year, or IMHO less than that. That's his job as CEO. He's not the only one at Ford making the big bucks.

 

 For America to succeed, the wealth needs to be spread out to ALL employees. That's what made our industrial might great, but unfortunately greed is ruining it.

Sep 29, 2013 9:33PM
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Of course it's not Government Motors leading.
Sep 28, 2013 7:35PM
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I HAVE A 2000 FORD CONTOUR JUST TURNED 97,000 MILES HAVE DONE REGULAR

MAINTENANCE THANX TO A GREAT HONEST MECHANIC AND IT'S STILL GOING! I WAS

NEVER A BIG FORD FAN BEFORE I BOUGHT THIS CAR EXCEPT FOR A OLD LTD I HAD

AND I LOVED IT. I'M A FORD MAN NOW. F GMC I HAD 2 CAMAROS PIECES OF JUNK

AND OTHER THAN MY POP AND GRANDDAD'S 70'S IMPALAS GMC'S SUCK! AND NOW

WITH THEIR OBAMA BAILOUT OUT THEY CAN KISS MY ****! I CAN'T AFFORD A NEW

CAR NOW IN THIS DEMONCRAT OBAMA ECONOMY! THANX! BUT WHEN AND IF I DO

I WILL BUY FORD! I'M LOOKING FOR AN OLD FORD CLASSIC BUT IF NOT THEN NEW!

GLAD TO SEE THE LIBERAL "EGO" CAR PRIUS IS BEING TRADED IN! HOPE THE VOLT

IS NEXT BUT NOT MANY HAVE BEEN BUYING THAT CRAP ANYWAY! BOYCOTT GMC

GE NBC AND HOLLYWEIRD AND ALL OTHER OBAMA DEMONCRAT SUPPORTED CO!

Sep 29, 2013 10:26PM
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I've never driven anything but Fords and see no reason that will ever change.....all trouble free :) I'm on number 9, a 2013 Focus SEL...love the car!!
Sep 30, 2013 5:29AM
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One of the biggest reasons GM got in trouble was producing junk.  Of all the 50 or so cars I have owned, some of them GM, they were by far the worse in terms of reliability.  Especially the Aurora.  That car was a crime against the consumer.  I predicted years before it happened that their sales would plummet and they would be facing bankruptcy and sure enough they did.  No more GM's for the remainder of my life but Fords, oh yeah.  
Sep 30, 2013 1:38AM
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Getting ready to buy an F-350 for my retirement roadshow.

Won't even bother looking at GM or Chrysler equivalent.

 

And I hear the same from many.

 

My 99 Expedition going strong at 160k with just routine maintenance.

 

We don't need no stinking clown cars!

Sep 30, 2013 10:26AM
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Posters keep stating Ford never took Government money when in fact they have. And it's nothing wrong with that. Other countries subsidize their auto makers, it's only right that we protect our own.

Posters are also acting as if Ford was going to survive regardless of the Government. I beg to differ. From my viewpoint, Ford and GM would both be bankrupt without actions of the FED. That's just how bad things were back then.

Ford earned $35.2Billion dollars from 2009-2012 after losing $30Billion dollars the three years previous. GM since it had zero access to Credit Markets was even worse off. Big Banks were literally insolvent. Most folks couldn't get enough loans aka Car sales peaking from an annual rate over 17million to tanking down to almost 10million.

Enter stage left the Global FEDS, Tarp, and printing to infinity. Without this, I am certain we would still be in the Great Depression. As it is, we have only delayed the inevitable. This is hardly about liking or disliking Ford or GM, it's just the State of Affairs in this Global Economy.

Sep 30, 2013 8:31AM
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I was lucky enough to buy this stock at $2 a share, wish I had bought a lot more.

 

Sep 28, 2013 6:51PM
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80XLS....Not to call you out on the Rich getting Richer under...?O'?

 

The Rich get Richer under all Presidents irregardless of Parties...

The Rich have a much better chance to preserve money and property in a Recession, particularly a deep Recession as we have just experienced...

Depressions are probably much worst, but still the rich have money, property or credit left to be able to go and scoop up, buy or invest...When the Middle and Lower Classes have went completely or near broke....Job losses; With the Housing and property collapse, was a defining moment on anyone, BUT the Rich..

And now the Rich (or many) plus Foreign money are buying those spoils for .10-50 cents on the dollar..

THUS, the Wealth Gap growing further apart...Doesn't have anything to do with Obama...

That's a fallacy or complete agenda'd lie...

If you wanted to blame anyone, you could blame Bush...BUT that isn't completely fair either.

Sep 30, 2013 7:25AM
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What a freaking joke of a column.  Does any sane person really believe the automakers are back?  Who can afford a $55,000 or more truck?  The US automakers did almost nothing to take care of why they were in trouble in the first place.  They still have the massive pensions and benefits to pay for.  The automakers within a couple of years will be right back where they were before and screaming for a bailout, again.
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