Brief update on Ford shares which is held in most, but not all client accounts.
The attached report does a very good job in explaining the investment thesis behind Ford.
Ford is launching 23 new products over the next year with none bigger than the new F150. The F-150 pickup truck has been the top selling vehicle in the US and Ford’s key to success historically. With the F-150 being out of production since July for the conversion to the new 2015 model, revenues have been hurt while expenses for new products, warranty, and foreign business problems has caused 2014 be basically a write off, but sets up 2015 for a much stronger sales and profits.
Looking forward, I concur with Barron’s outlook for rise to about $20/share. Longer term, assuming the new models do well, $25 to $30/share seems like a reasonable expectation over the longer term. Also, the stock currently yields 3.3%.
Ford shares are held in most but not all client accounts and a truck load in my family accounts.