Rookie,
I've been watching that U.S. dollar call you made a while back!! SPOT ON, as usual
For those of you who missed it. Just as interest rates were being lowered like garage sale prices on a Sunday afternoon, Rookie mentions that he thought the FED was finished lowering rates due to inflation issues. Remember...at this time the dollar is falling like a rock.
Well, look at what's going on. Prices are going through the roof on EVERYTHING but housing, and it looks like the Fed IS done lowering.
Rookie was right.... AGAIN!!
PLEASE....start the closed end funds thread!!
Oh......and NO, I won't be selling these options for a short money gain.
The plan is to let Ford's recovery gain momentum and sell when everyone else is piling in.
Ford's not out of the woods just yet. I fully expect a few more losing quarters before they complete the turnaround. That won't bother me in any way. If the stock gets over sold like it did in March, I'll simply add to my postion.
My pay off is 2 to 3 years out on this. Remember........In December of 2009 if Ford stcok is trading at $16/share I can buy that same stock for $7.50.
I fully intend to ride this. the biggest mistake most new investors make is they sell their winners WAY to early. If Ford does what I think it could. I would not be surprised to see this stock in the mid 30's or higher within 3 years. If I sold my options now I would have a gross profit of $36,500.
If I wait it out and Ford simply continues their already estiblished turn around, my options, when converted to stock could then be worth over $600,000. My estimate of $30/share is based on a conservative comparison of Ford's stock price through out the history of the company. It has been much higher than $30. It may be of some interest to note that FORD has $45 BILLION in cash on hand and posted a $100 million PROFIT and is currently at $8.50/share while GM has $30 Billion in cash on hand and posted a LOSS but trades at $21/share.
My feeling is Alan Mulally is setting a foundation for Ford that is comparable to what Wendelin Wiedeking did at Porsche. When Mr. Wiedeking took over at Porsche it was nearly bankrupt. He did EXACTLY what Mulally is doing at Ford. He ASKED people WHAT IS A PORSCHE??? The answer?? THE 911!!!
For years Porsche had been screwing around with water cooled cars. 928's, 944's and 924's... they had NO RESALE VALUE, and lowered the brands image in the eyes of buyers. Wiedeking's answer???? Drop the water cooled cars from the lineup and put money into the 911. The classic 911 was the car that BUILT Porsche. They came up with the 993 Carrera. IT WAS A SMASH HIT!! They followed that up with the BOXSTER. Mid engined brother of the LEGENDARY 550 Spyder's that CRUSHED bigger more powerful cars on road racing curcuits around the world in the 1950's. THAT DID IT!!!! 2 GREAT cars, and PORSCHE could NOT keep up with demand!!!
RESULTS????
Porsche's stock went from $20/share to over $300/share in 5 years!!
"There isn't a problem a car maker faces that can not be resolved with GREAT product."
Again......this is how WEALTH is created.
