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Ford Stock Investor Information
(NYSE: F)


Why is Ford Stock dropping?

A classic question, what can be done to keep Ford stock from going down. The question seems to have consumed, not just investors, but the entire government. The American car industry seems to have rebounded, with Ford leading the way. With the government's boost Ford has done well. The question that remains unanswered is can it maintain this success long term?

Should I Buy Ford stock?

Going along with the above points, the question really remains... will Ford Stock be able to continue producing solid cars, with good gas mileage. Can they remain a leader in tech innovations, specifically their Ford Sync system? These are questions individual investors must ask themseleves as they analyze what is Ford stock worth? More or less than it trades for today?

With General Motors now bankrupt, previous fears of a Ford bankruptcy are magnified. Ford stock price has gone from nearly under $1 to around $5 in recent trading. In Ford Motor Company's 10th Annual Sustainability Report, much of the progress that the company is making is coming to light. The question is whether or not Alan Mulally and Bill Ford and save this company given the existing economic environment and pessimistic American consumer.

This leads to the question, is there value in Ford stock. Ford stock value is based primarily on its historical position as America's earliest automobile manufacturer. 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.

Many question the gas mileage of all American cars, including Ford. While, GM got hit primarily for its production of the Hummer, Ford's Jaguar line isn't exactly for fuel efficiency. Ford did score some gains with its Focus model and claims to be working on its electric and other fuel alternative models.

Companies related to Ford stock and their stock symbols: GMGMQ General Motors Corporation, TM Toyota Motor Corp. (ADR), HMC Honda Motor Co., Ltd., NSANY Nissan Motor Co., Ltd., DAI Daimler AG (USA), NAV Navistar Intl. Corp., BCAHY Brilliance China Automotive, VLKAY Volkswagen AG (ADR), SPAR Spartan Motors, Inc., PCAR PACCAR Inc.

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.