Just to let you guys know, unless something drastic happens in the next few days I’ll be parking my meager retirement funds into Ford for a long term buy (no options). I’m 28, my account is small (only one deposit from this year’s SEP distribution) and frankly it isn’t enough money that I’d be overly concerned. The few grand that was in there a few years back got cleaned out when I had some bills to pay. No distribution last year, guess the company didn’t do well enough to warrant one. I just recently was notified that I was getting one this year, $3300. Check went in the mail a few days back. Around then I decided I was going to buy 100% Ford stock with it. Way I figure if I park it in mutual funds they’ll probably tank or barely make me anything. If Ford does what I think it will I’ll see a massive gain in 3-4 years. If they go bankrupt the downside risk is $3300…big freaking deal. If I buy at $2 a share and it goes up to $8 which I think is a no-brainer I’ll be over $13k from a $3300 investment, not too shabby. If I lose it all, who cares. Hell, it’s only $3300 and I’m 28…not going to be retiring anytime soon. If I lose it all I’m no worse off than I was a month ago, if it does what I think it will I’ve got a healthy start to my retirement account. Only thing bumming me out is that in the few days since I decided to do this it has gone up about 12-15%, hopefully when the check shows up at Fidelity to fund my account it will have slid a bit.
Stock that are near bankruptcy are very volatile. Yes, it’s up a bunch in the past few days, and if you have a little patience, it will likely be down again. I’ve had an order in to buy F at $1.25 for about a month. I’m being patient and I feel quite confident that I will get it at that price.
Mike
Honestly if I don’t see it drop much I’m not going to waiting around hoping for it to drop. I’ll just buy in the the low 2’s, better to buy it there then to wait for a better price and miss the boat.
Rich use the money to buy options in the indexes…Just because a stock is cheap doesnt mean its a decent idea to load up on it and hope for the best…If you said Im buying 2-3 cheap stocks that have potential I would have felt better…But to roll the dice on F which may very well make a move is something I dont feel secure about…But its your money and I wish you the best…
Honestly, most cheap stocks are cheap for a reason (I think you said that in this thread). Frankly there are none that I can readily think of that at their low prices I see as a value vs being straight garbage. If you can think of any I’d be willing to listen. I’m also tempted to shy away from options, from what I read here and what I read online I have enough knowledge to see how the concept works but I don’t think I know enough to actually put my money into them. Plus the way I look at it as long as Ford doesn’t go belly up I’ll eventually get my money back. If it takes longer than 2 years, whatever…I can wait. With options if it takes longer than 2 years, and it might very well do that, I wasted my money.
[i]With options if it takes longer than 2 years, and it might very well do that, I wasted my money.[i]
Look into LEAPS…I would simply put the $3300 into a very aggressive growth fund…Ford and the car industry is dead wood and the business model is real dogsh*t…I understand your concept of wanting the most bang for your buck with buying a cheap stock…And yes I’m not a fan of Ford since this thread started when it was $8 per share…If you feel so strongly about Ford buy the LEAPS or buy Call options on it…You will increase your bang for the buck 10x…
And time frames shouldnt matter…If you bought options and they tripled in value you would have almost 10k…Now you can buy some stock or invest it somewhere else…With $3k work of stock you will get like 1500 shares give or take…Not much bang there…
Rich,
JUST BUY THE FORD STOCK.
ANY bankruptcy in GM or Chrysler will have BIG benefits for Ford. Think about it…The Goverment will try to find their way around some type of structured bankruptcy for GM and Chrysler.
Ford has MORE TIME than GM or Chrysler. THIS IS GIGANTIC!!!
Think about this…Our government COMPLETELY screwed up by letting LEHMAN Bros fail. That is now an acknowledged FACT. Look at the results…We are now THROWING money at the REMAINING banks because if THEY GO, the cascade effect will be mind boggling.
Ford is going to survive BECAUSE GM or Chrysler WILL NOT. The Goverment will intially screw this up, the effects will be disasterous for the economy and market sentiment. At that point…
FORD WILL GET WHAT EVER IT NEEDS TO SURVIVE!!!
BUY THE STOCK. When the economy eventually turns, the PENT UP DEMAND for autos will BLOW YOUR MIND. This has happened in EVER RECESSION since automobiles have been in existance.
So to recap…
Our Goverment WILL screw up the bankruptcy of GM or Chrysler by trying to “handle it”. When that happens all of America and everyone on Wall St. will COMPLETELY understand how Tear 1 parts suppliers located in EVERY STATE in the U.S. effect our economy. Once that has been made clear, Ford…will be given ANYTHING they need, as the LONE remaining U.S. auto maker.
You have the right idea. BUY IT…Don’t play games…When the stock is at double digits 5 to 6 years from now, it won’t matter if you bought it at $1.50 or $2.00
What WILL matter is…YOU BOUGHT IT!!!
I’m with you Fd, win lose or draw. I put my money where my mouth is, if I’m wrong so be it. The other option is cash it out, give Uncle Sam his cut and take the rest a hour away to the casino and hit the blackjack table.
$1.84 now, ya baby. Fidelity just got my check in the mail, should have my account info in the mail in the next day or so and be ready to trade.
If FDJake is right and the economy is about to tank, then it would be crazy to buy Ford stock at $2.00. No-one is going to buy a car during a depression! On the other hand, if you think the recession is over and the market is going straight up from here, then you’d be silly not to buy right now at $2.00.
I’m betting that Obama is killing the economy with his socialist programs and all the “stimulus” in the world won’t solve the economy. Cap and trade; cutting down on the deduction for charitable giving; cutting down the mortgage interest deduction (in the middle of a real estate crisis); increasing taxes on entrepreneurs; raising taxes on nearly all tax paying Americans, etc are going to put us over the edge. Wait and see!
Mike
I don’t by any means think it will be going up for a while, 2-3 years maybe it will be a lot prettier picture for Ford. I’m not quite sure we’ve seen the bottom of the drop for Ford, not to say that it will cause me to wait to buy. I’m trying to buy low, not really super concerned with nickle-diming for a slightly better price. In fact I wouldn’t be hugely shocked to see it hit a $1 towards the end of this year.
How can I transfer my 401 (k) to a F stock? Open a Roth 401 (k)?? Not every dime, but a high percentage of it I want to. Will Uncle Sam take taxes from it?
I DO think the economy is about to tank…
But at UNDER $2.00/share for Ford stock… THE BAD NEWS IS ALREADY PRICED IN.
I’ve said this before…
You can PLAY with this stock or you can BUY it. People who “play” with these things usually get BURNED. It happens because at some point they OWN the stock for lets say $1.50. They trade in and out of it for short money (maybe making $1000 here and there) Then it happens…
The stock price MOVES UP on them but they’re OUT …They OWNED IT at $1.50 and now have to pay $5.00 for the same stock. THEY GET PARALIZED. They sit and watch in disbelief…Then the stock moves to even HIGHER. At that point they just CAN NOT buy back in. HUGE, HUGE, COMMON MISTAKE.
Buying something BACK at 3 or 4 TIMES what you once owned it for is VERY DIFFICULT.
Call this stock what you want, DEAD MONEY, CRAP, Dog Sh*T, I could care less…I’ve seen this movie before…bought the ticket, the stock AND the t-shirt. YOU’LL LOVE THE ENDING.
One thing is now absolutely clear.
IF…and it’s and IF…ANY American car company is going to survive…
FORD… IS WAY out front among it’s domestic competition.
BUY it…Then forget you own it.
PS…Ford is going to close the sale of Volvo within months. $3 to $6 BILLION are the estimates for the sale. At that point Ford will have cut loose ALL the GARBAGE Premier Auto Group makes they bought decades ago.
Here’s a quick list of the LOSERS Ford won’t be POURING money into anymore…
Jaguar
Land Rover
Aston Martin
Volvo
Mulally is going EXACTLY what he said he would do.
Another little GEM no one here seems to be paying attention to…
Fords quality has moved up so much that the company SAVED $2 BILLION last year in warranty costs.
Too bad I won’t get enough of a return to buy a car from one of those former brands, an Aston Martin Vanquish would look nice in my driveway. I’d be quite happy with a Ford GT too.
Of course I could always just do mutual funds in my account.
Like this winner (Vanguard is a big respected name right???):
http://www.marketwatch.com/tools/mutualfunds/performance.asp?symb=VFINX&sid=5254
Yeah, but they aren’t all bad…right?
"Out of almost 2,100 diversified retail U.S. stock mutual funds that are open to new investors, just 17 have positive returns for both the past 12 months and year-to-date, according to investment researcher Morningstar Inc."
Screw that, 17 out of 2100…blackjack is starting to sound like a safer bet. Maybe craps? Maybe push it all out on the hard 4? Screw that, I’d rather put it all on blue oval. From my point of view I’d say it’s only about a 10% chance Ford will BK, I just don’t forsee that as the reality right now based on what I’m seeing. As long as it doesn’t BK I win. It won’t skyrocket tomorrow but I’ll get my money back and then some in the future, though the timeline is up in the air.
Yeah, part of that $2 Billion was saved by them not fixing my truck under warranty. Did you realize that Ford trucks only come with a 2 yr 10 month / 36K mile warranty? No?? Neither did I. The idiots at the dealership refused to fix a large list of problems by making tons of excuses. Oh, and calls to Ford customer care??? Yeah, got me nowhere. I even got asked why I was just bringing it in at the end of the warranty period for work. My being out of the country for a few months serving our country was my reason.
Had to get that off my chest when I saw something about their quality and saving warranty costs…
Sorry to hear that. What kind of problems do you have with you truck???
Just to inform you…Toyota which is considered the gold standard for reliability just decided to settle a class action lawsuit brought by THOUSANDS of owners whose ENGINES DIED AT 60,000 MILES!!!
Those engines SLUDGED, then seized. COST TO FIX???
$10,000 per engine and TOYOTA COVERED NONE OF THEM.
The owners fought back and finally won in court. The terms of the settlement REQUIRE Toyota to cover their 4 and 6 cylinder engines to 100,000 miles.
They didn’t do this out of the goodness of thier hearts…They did it because they were FORCED TO. Due to this and other quality issues of late CONSUMER REPORTS will no longer issue Toyota automatic preferred status on their cars.
Ford meanwhile, according to CONSUMER REPORTS, has quality which actually SURPASSES Toyota.
Let me know what’s wrong with your truck. I may be able to get you some assitance.
This is on a 2005 F250 4x4 Crew Cab Diesel. This was my “dream truck” and the first new vehicle I’ve ever bought. I lost reverse in it at around 20K miles. I actually got that one fixed. When I went in toward the end of the warranty, the truck had an oil leak from some line on the back side of the engine (they fixed that one, but none of the other things), the ABS light was coming on, the integrated trailer brake controller would quit intermittently, and in large parts of the roof there were thin spots in the paint from the factory that started rusting. The rust they blamed on “environmental issues” because that’s a clause in the warranty. The ABS and trailer controller they claimed they couldn’t find a problem with. I’d been in to complain about the trailer controller before with no results. I had to take my truck from my worthless local Ford dealer to another one about 20 miles away because the a-hole service manager decided not to fix any of these things. The only thing I got fixed at the other place was the oil line leak. I even asked Ford corporate reps why they thought a service manager w/ no auto body experience was qualified to quote a reason for a rust problem on a <3 yr old truck. They just said they were standing with him and refusing service just like they did on everything else. I have an extended warranty on the truck, but it has a $100 deductible so I haven’t tried using it yet since I don’t want to pay them to look at it only to refuse the service. Do I hate the truck so much that I want to get rid of it? No, but I wish they would stand behind their product and fix problems they’re supposed to fix.
My former local Ford dealership has since closed down.
I can only hope the service manager is flipping burgers somewhere refusing to put ketchup on the burgers…
What part of the country are you in? If you are in the northeast I can recommend a really good Ford dealer that might go to bat for you and help you get it rectified.
I was in WA state when all this happened. Now I’m in MS. I was gone most of last year so it’s a year out of factory warranty now. I grew up behind a Chevy dealership so I’m very familiar with how dealers hate warranty work. Plain and simple, they weaseled out of it. I just saw the comments about the quality and warranty and thought I’d share my experience. This is probably the last new car/truck I’ll buy and I really doubt I’ll get a Ford again. I’ve been really disappointed with the quality considering what the truck cost brand new.
Ford has a pretty good market share overseas and I agree with a lot of stuff posted here, but I wish they would’ve stood behind their product better.