Among some of the key factors in my belief that Ford Motor Company should do well this year are:
- Quantitative easing in Europe which should help boost European sales and certainly help the European economy.
- Very attractive sales figures already for the new aluminum body Ford F-150.
- 24 new models released last year, which in the short term cost the company a lot, but that should boost bottom lines this year.
- A recent increase in the dividend bringing Ford's overall yield to a little over 4%, which is a sign that Ford is confident it will be profitable and can afford to continue to provide a piece of the pie to their shareholders.
- If gas prices can remain below $4 per gallon, this should also help to boost truck and SUV sales, which are the bread and butter for automakers. With the new F-150 out, I think there is no doubt that Ford will continue to maintain it's #1 position in truck sales, and may even attract a few GM and Dodge lovers over to their corner to check this out.
- Ford has been trading in a range of about $14.00 - $17.00 over the past two years. I think it can break the $17 resistance on strong sales, growth, and other factors, and once it does the stock will take off.
Disclosure: The author of this article is currently long Ford Motor Company (F) and intends to add shares within the next 30 days.
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