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Title: Ford Stock Could Hit $30 Per Share
Source:
DETROIT FREE PRESS
URL Source: http://m.freep.com/news.jsp?key=759394&rc=bz
Published: Nov 11, 2010
Author: BRENT SNAVELY
Post Date: 2010-11-11 12:22:49 by Brian S
Keywords: None
Views: 7900
Comments: 9
November 11, 2010 05:43 AM Ford's stock price climbed 44 cents, or 2.7%, today to $16.51 after Morgan Stanley analyst Adam Jonas said the company's stock could be worth $30 if industry sales recover and the company gains market share. Shares of Ford's stock have increased more than 60% this year and closed above $16 on Friday for the first time since June 2004. "We've really fundamentally fixed our cost structure," Ford Executive Chairman Bill Ford said today on financial news network CNBC. "We've made $7 billion this year already in what would be historically in a very depressed automotive market." When Alan Mulally joined Ford in September 2006, the company's stock was trading at about $8 per share and it lost about $30 billion from 2006 to 2008. Since 2006 when Ford hired Mulally as president and CEO, the company has cut costs by selling brands and closing plants. It also has increased its market share in the U.S. Now, Ford said that the company is hiring both in the United States and globally and plans to export its 2011 Ford Explorer, which will be built at the company's plant in Chicago. "We actually view the U.S. as a growth market," Ford said. "We are going to be exporting the Explorer to 93 different countries." Morgan Stanley's Jonas estimates that Ford is worth about $23 per share, but said that estimate is conservative and is based on modest industry and company forecasts. "Our assumptions are also based on declining margins in South America and rather pedestrian assumptions for growth in other emerging markets, especially in China," Jonas said in his report. "In a modestly more bullish scenario, could Ford's fundamental operating performance justify a $30 share price? We think yes." To get to $30 per share, Jonas said Ford would have to do the following: * Improve its share of car and truck sales in the United States from 17% to 19%. * Benefit from an economic recover and industry sales of 18 million by 2015, or 6.5 million more than the expected industry total this year. * Sustain its North American profit margin at about 7% of total revenue. * Maintain a profit margin in South America of about 7.5%. Ford's stock hit $37 per share in March 1998 and $31 per share in early 2000 when the U.S. economy was in better shape and the automaker was a leading seller of SUVs. For 2010, Jonas estimates that Ford will earn a profit of $8.8 billion. That would be the company's largest annual profit since 1998.
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#1. To: Brian S (#0)
I'm doing what I can to support Ford.
And I thank you. I bought in at $2.28 a share back in late Nov. 2008 or so and considered it a 'casino play'. Never had this much luck at any casino...ever.
Never swear "allegiance" to anything other than the 'right to change your mind'!
What do you drive, a rice rocket?
Of course not. We have been a GM family my entire life with one exception being a Ford back around 1987.
Never swear "allegiance" to anything other than the 'right to change your mind'!
If Obama hasn't totaled the economy and I get a real job again one day I'm going to buy a brand new one. I hope my '96 Ranger can hold up until then.
Government Motors. Figures!
Good luck! I just bought a 2000 F-250 SD (77,000 miles) with a Western V-plow for 1/4 of the price of a new truck alone.
...said the tightwad...
When I find a good deal I act. You sit on your fat ass and drink. Did you and TBLShow divorce, Ethyl?
Ford Stock Could Hit $30 Per Share
#2. To: Ibluafartsky (#1)
I'm doing what I can to support Ford.
#3. To: Brian S (#2)
I bought in at $2.28 a share back in late Nov. 2008
#4. To: Ibluafartsky (#3)
#5. To: Ibluafartsky (#1)
I'm doing what I can to support Ford.
#6. To: Brian S (#4)
We have been a GM family my entire life
#7. To: Happy Quanzaa (#5)
I get a real job again.......I hope my '96 Ranger can hold up until then.
#8. To: Ibluafartsky (#7)
#9. To: Fred Mertz (#8)
(Edited)
...said the tightwad...
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