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Author: TMFThump Big gold star, 5000 posts Old School Fool Ticker Guide Home Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 18154  
Subject: Re: Ford Stock Performance Question Date: 1/16/2013 12:49 PM
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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.

Doug
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