One thing that always look in the market is large fluctuations in a stock. If on soaring or swing a big drawback can be excessive to the news. This overreaction can present unique buying or selling opportunities. All trades of often happen on emotion rather than fundamentals and experienced investors can benefit. Yesterday, Ford (NYSE: F), one of the largest OEM partner of Sirius XM has had great success in their relationship and he fell from a price of $ 79 to $ 18.4: 27 pm. It is time to buy Ford?
Ford had a huge Run last year. Were able to outperform from time to time without getting a bailout from the Government and have made some great new cars on the road. The company is rapidly becoming a technology leader in dashboards and their MyFord, SYNC and systems were made available in every level of their line-up of the car. The "dashboard", able to connect to consumers for their audio entertainment in ways never seen before, represents a new wave in 2011 and beyond. Ford has been a leader and has integrated these elements of strong demand in most cars more perhaps any other maker.
The stock price Ford took the Friday 28 January was, in my opinion, too much of a fix. January car sales promise to be stronger on a seasonally adjusted annualized sales base (SAAR) in respect of any month in 2010. 2011 car sales are projected to approach 13 million and Ford is among the leaders in sales, month after month, year after year. Auto sales last year came to only EUR 11.6 million. Projected global car sales coming in 11% higher than last year not a 13% drop in the price of the shares of Ford seem a little extreme?
What we seem to have here was the road building higher expectations in Ford should have. Yes, it is possible that Ford was in a situation of overbought, but the Outlook is strong for 2011 and Ford is well positioned in the automotive landscape. The company has lost $ 0.14 estimates, but that was on the heels of major investments in new car launches and a weak Q4 expected in Europe. The history of the 2011 auto sales in the United States will be great having launches new help only Ford long.
A factor contributing to miss Fords in the fourth quarter was a charge of 960 million for debt reduction. In 2010 the company cut down debt over 33 billion dollars only 14 billion dollars. Moves like this shot, the bottom line, but in essence the debt picture is improving for Ford in ways that could impair the fairness dramatically going forward. Reducing the debt of the company could lead to an improvement in their rating and maybe even support to investment grade in 2011. The company has expressed and guided tours that will bring profits, 2011 as well as the improved cash flow.
I think investors should take a look of Ford.
Position – no position, Ford
