Ford Motor Company And The Detroit News
I wanted to put a quick post up this week on Ford after a very dour Ford article at DetroitNews.com
I believe some of the best automotive journalism anywhere is found at that site as I have mentioned before. Specifically, Daniel Howes, but the whole team is first rate. That's why I have it on my links section on the right side of my blog.
But, I must say the article today I reference above is what I consider noise. As I said in the last post, "focus on the turnaround, not the noise". Is there anyone who would expect morale at Ford or any turnaround to be cheery with 40,000+ layoffs and 16 plant closings? Is there anyone who expected Ford to meet their sales objectives in North America with an acknowledged weak product mix? This story is nothing new. Turnarounds are nothing but bad news. One thing to watch for is when bad news no longer sends the stock to new lows. That might give an indication the shares have moved from weak hands to strong hands.
Below is a chart for Ford's stock price going back nearly decade. Overlaid on the chart in red and green bar charts is Toyota. Obviously, Ford investors have been punished and Toyota investors look brilliant. Also overlaid on the chart my buying pressure algorithm. It seldom changes direction. Four times in a decade. Well, this obviously isn't a trading mechanism or a buy signal by itself but it appears some very big buyers have recently bought Ford. Too early? Maybe. Are they making their investment decisions based on Detroit News articles? Or have they met with the Ford management team? Have they reviewed the financials and turnaround plan with Ford? Are they making educated decisions or gambling? Time will tell.
I believe some of the best automotive journalism anywhere is found at that site as I have mentioned before. Specifically, Daniel Howes, but the whole team is first rate. That's why I have it on my links section on the right side of my blog.
But, I must say the article today I reference above is what I consider noise. As I said in the last post, "focus on the turnaround, not the noise". Is there anyone who would expect morale at Ford or any turnaround to be cheery with 40,000+ layoffs and 16 plant closings? Is there anyone who expected Ford to meet their sales objectives in North America with an acknowledged weak product mix? This story is nothing new. Turnarounds are nothing but bad news. One thing to watch for is when bad news no longer sends the stock to new lows. That might give an indication the shares have moved from weak hands to strong hands.
Below is a chart for Ford's stock price going back nearly decade. Overlaid on the chart in red and green bar charts is Toyota. Obviously, Ford investors have been punished and Toyota investors look brilliant. Also overlaid on the chart my buying pressure algorithm. It seldom changes direction. Four times in a decade. Well, this obviously isn't a trading mechanism or a buy signal by itself but it appears some very big buyers have recently bought Ford. Too early? Maybe. Are they making their investment decisions based on Detroit News articles? Or have they met with the Ford management team? Have they reviewed the financials and turnaround plan with Ford? Are they making educated decisions or gambling? Time will tell.
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