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Ford (F) stock has risen 40% in 6 months with a great P/E ratio of 3.2. Would like to know what other Fools think of this as an investment. Also read that 4th qtr data coming out in late January is projected to be very positive.

For some reason this isn't an advisors core stock or buy now stock but it sure seems to have outperformed every aspect of the S&P for the past year. Maybe a good opportunity to get out in before it becomes a recommended stock and ramps up quickly.
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No. of Recommendations: 7
Welcome to the TMF public board for Ford, Pdest!

You asked what other Fools think of F as an investment, and my thoughts are largely bullish. There are a couple of things you should know, however. The first is that I work for Ford, and there are others who contribute to this board that have the same conflict of interest. Please take my comments with the same grain of salt you might give to the owners of foreign makes that refuse to consider any American automobile.

The second thing I think you should understand is that the P/E ratio you noted (3.2) is an aberration that is driven by one-time events that won't continue indefinitely. During the Great Recession Ford accrued some tax benefits, recently used to offset tax liabilities, that drove earnings higher than they otherwise would have produced. You're probably better off comparing F with their competitors based on anticipated future earnings.

Now that I've thrown a bucket of cold water on a rosy picture, let me say that there are a lot of things going right that could continue to do so. The product pipeline looks robust, margins are in very good shape, and could do even better under any signs of economic turn-around in Europe and increasing production capacity is Asia. Mulally continues to push the right buttons and will so for another couple of years. I'd say there are some pretty good reasons to be bullish.

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No. of Recommendations: 8
Post #16690

Kahuna, CFA
Venture Capital
Portfolio Manager

Disclosure: Long Ford(F), cost < $4.01 per share

Post #17342

Kahuna, CFA
Investment Professional
1974 - Present

Disclosure: Large Beneficial interest in F <cost about $3 per share>.

Congratulations to Kahuna, CFA! Who is able to get better and better with his purchases as time goes by....even as the price goes up....


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Covered Call basis reduction?

Elaborate ponzi scheme?

"Creative" book keeping?

Enron executive training?

I probably have at least 20 more of those, but I'll save you all the pain.

:) (jk)

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No. of Recommendations: 1
Maybe he is now valuing his investment in terms of rubles?

Ok, now I'm done...
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