It’s called momentum. And as Toyota continues to slide, FORD is gaining traction.
What we are witnessing is a complete 180 degree turn in PERCEPTION regarding Ford as a COMPANY.
These events occur in business over and over. The KEY is to HOLD ON and RIDE these shifts.
http://www.autoblog.com/2010/03/26/bloomberg-survey-says-americans-turning-away-from-toyota/
These opportunites come along once in a DECADE…We are witnessing the complete RESURGENCE of Ford Motor as a COMPANY…
I’ve been investing in car companies for over 20+ years…The returns these situations can provide are literally BREATH TAKING…What needs to be understood here is this…15 years ago FORD was a $36 stock…It was NOT the lean, focused company it now is…It did NOT have ground breaking contracts with the UAW that now have workers starting at $14/hour, no more JOBS BANK, No more health care payments for retirees coming from Ford, it’s now the UAW’s responsibility to manage those accounts.
DO THE MATH…If Ford was a $36 stock WITH all the legacy costs and they now have a FRACTION of those expenses, MUCH BETTER PRODUCT, and HUGE GAINS in customer PERCEPTION of the company…How long will it take before Ford stock has swapped places with TOYOTA and is at $75-$80/share???
Think I’m kidding???
In 1992 CHRYSLER stock was $9/share. By 1998 that stock was $185/share when Mercedes purchased Chrysler. At that time CHRYSLER had the best selling cars in each segment. The company had CHANGED IT’S PERCEPTION in the eyes of the CONSUMER…Exactly what FORD is now doing!!!
There’s more…
Porsche…$20/share in 1990…The 944 and 928 models moved away from what made a Porsche, a Porsche… and sales DIED.
Porsche…$220/share in 2001 a then completely new 911 and the Boxster replaced DOGS like the VW based 944 and the over weight 928. BETTER PRODUCTS meant improved CUSTOMER PERCEPTION and a higher stock price.
Ford made over $1,000,000,000 in the last 3 months of 2009 with annual cars sales running under 10 million/year…the average yearly car sales numbers should run to about 13 million…Lowers costs, BETTER MANAGEMENT, HUGE GAINS in PUBLIC PERCEPTION and landmark contract concessions, with HUGE recession provided PENT UP DEMAND mean ONE THING…
HOLD THIS STOCK…FORGET YOU OWN IT…The PAY OFF in 4 to 5 years will be MIND BLOWING!!!