Carpocalypse news worth sharing!
Jstas
Posts: 14,806
U.S. stock market report 0744 ET 22April2009-Goldman upgrades US auto sector, bullish on Ford
Goldman Sachs on Wednesday upgraded the U.S. auto sector to neutral from cautious, "as we see upside from bottoming sales as evenly balanced with risks from a likely General Motors bankruptcy and a possible Chrysler liquidation."
The firm added Ford Motor Co to its conviction buy list. "Unlike GM, we do not foresee bankruptcy at Ford, which we believe has sufficient liquidity to make it through to 2010 without additional funding," the firm wrote. "We recognize sector sentiment is likely to be impacted by potential GM and Chrysler filings, but, with 58 percent upside to our target, we think much of this is in the shares which present a very attractive risk/reward."
It added that Ford would benefit the most "in the new world order."
Shares of Ford surged 10 percent to $4.18 in premarket trade.
Might be a tad premature but I think Goldman-Sachs is right. With the positive results that Ford's most recent product is seeing along with the good reviews and the European spec Focus replacing the anemic U.S. spec Focus as well as the European spec Fiesta coming, Ford is placed well with not only product that is selling well but also a financial plan that is healthy enough to see them through this hard time, even if GM goes bankrupt.
So if you play the stock game, Ford seems like a good buy right now. Might be a bumpy ride into the 4th quarter of this year but if the positive press keeps rolling in and product keeps rolling out the showroom doors, one could make quite a few quick bucks riding the wave of good fortune at Ford. Even at $4.18 a share, it's still a good buy. I saw news reports earlier today predicting $6+ a share for Ford in the 4th quarter this year as the next model year approaches. If Ford goes back up over $8 a share, they could be in the black again as early as next spring. Snap 'em up folks! You don't have much to lose on this gamble and it stands to pay off big because right now, it looks like Ford is the only American automaker capable of competing.
Expert Moron Extraordinaire
You're just jealous 'cause the voices don't talk to you!
You're just jealous 'cause the voices don't talk to you!
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