Tuesday, February 3, 2015

Ford Will Have A Solid 2015

I have been saying for quite a while that I think that Ford Motor Company is an under appreciated, and certainly an undervalued stock. Nothing has changed my mind about that. The fact is that Ford Motor Company has quite a lot of good things going for it, and I believe this will help to drive the stock price towards the end of 2015 closer to the $20 valuation, where I think the valuation should be.

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.
Overall, I think that 2015 will prove to be a very good year for Ford Motor Company investors. Even at today's prices hovering a bit over $15 per share I am a buyer. I will still be a buyer up to around $17 per share.

Disclosure: The author of this article is currently long Ford Motor Company (F) and intends to add shares within the next 30 days.


No comments:

Post a Comment