Ford Motor Company (NYSE: F) is a world leader in the automobile manufacturing sector. Ford stock provides investors one of the most tried and tested companies in the US manufacturing sector. Located in Detroit, Ford stock has returned over 1000% profit to investors of its original initial public offering. Much of this, however, has come from Ford stock dividends, as its price is only up 73%. Its main competitors, Toyota Motor Corporation (NYSE: TM), General Motors Corporation (NYSE: GM) have suffered mightily in 2007, along with Ford Motor. Toyota, however, continues to gain market share and is now the world’s leading automobile manufacturer, overtaking Ford’s US counterpart, General Motors. Ford stock market cap remains over $10 billion, but it continues to consider sales of its subsidiaries, like Jaguar Cars Limited. In 2007, it sold Aston Martin.

Ford stock is backed by a less terrible financial position than one would expect; including a S&P credit rating of B in early 2008 the stock did not have a dividend plan established and carried an -6.15% net profit margin. Using the Standard and Poor’s Fair Value calculation in March 2008, we find a price around $4.40 for the equity. A return to profitability for the auto marker may eventually come from help in its Financial Services division. Despite a Ford stock surprise in Q1 2008, most analysts see losses for the remainder of the year. After a down year in 2007, it is likely that this segment will return to growth in 2008-2010. In addition, Ford came to terms with its United Auto Workers, in an agreement that will only help to increase Ford’s ability to compete and bring returns to shareholders.