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Tag: f

Has Ford Reached the Bottom?

Ford was at a bottom at $11.45 in the last week.  It has leaped up a nice 15% since it achieved this new 3 year low.  This increase was caused by a 20% increase in sales in February which included increases in passenger cars, utilities, trucks, and overall sales in 2016.  This is the first big stock increase we have seen in over a year.  It should see some downward action soon as people try to break even and close up stock positions before the tax date

For the long-term investor, you get a nice 4% dividend while you wait for this stock to get back to proper stock valuation.  Remember, many people still are holding onto their cars approaching or over 10 years old.  Most people would change cars in 3 to 4 years but the economic downturn has caused a damper on the consumer spending.  This should change in the new few years and I expect for the patient investor that they will be rewarded greatly by Ford’s stock price and dividend.

Is Ford a Great Stock for the Long-Term?

I’m been an advocate of Ford and their transition to make better cars, better design, and an overall better product for the customer.  Their stock has not reflected these changes well and it has been on a decline for over three years.  However, there were also prevailing market conditions such as oil that has affected its stock price.  You must also say that the current oil prices though will help Ford achieve a new top in stock price.  Gasoline is rather cheap right now even with the recent jump and people will be more inclined to buy new vehicles.

Remember, Ford has the popular Ford F-150 truck that gets much better gas mileage through the use of aluminum build.  They are the first company to use the lighter aluminum on their trucks.  In any industry, you have be planning to innovate to be the market leader.  The competitors will, of course, copy their aluminum design as they continue to see Ford’s increase truck sales but also that the customers have a better experience and a reason to start buying a new truck.

Ford also is working on some big things that will affect the industry long-term.  They are studying driver-less cars just like Tesla motors.  Unlike Tesla, they have a lot more volume and they are on a better spot to take an expensive technology and find ways to lessen the price for the customer.

 

 

Ford is Ready to Rumble

That’s right.  Cheap oil, low valuation, and nice dividend means Ford (F) is a great stock to own.  They have already released their F-150 aluminum and are getting great reviews.  Ford also has a bunch of other models coming out.  The best part is oil is cheap so its a great time for consumers to get new cars especially trucks.  With a 3.70% dividend, even the patient investor has time to just hold out until the stock moves up.

Technically, the stock has already broken resistance and it is in bullish territory.  If you haven’t look at Ford already, I recommend doing some due diligence and adding it to your portfolio.  I see much more growth in it versus its rival General Motors.

Reaping the Benefits of Stock Investing

With the christmas holiday coming and the holiday season, I thought I would write a lighter side from the normal stock investing that we do. I would like to write about the benefits we get as stock investors. We can use the money for experiences that would usually be a premium to that we can enjoy. Today I am enjoying a very nice first class flight form Japan Airlines. I have had an excellent experience so far and I’d like to write about it in more detail.

From the moment I went to check-in the flight, the experience has been impeccable. The check-in had no line at all for any of the classes (first, business, or coach) and they do have a separate line for each. LAX was very light during the weekday and I was able to pass through security quick. I had an okay experience at the oneWorld lounge. The breakfast was missing bacon and another protein but I was able to enjoy some eggs. They also had a nice barista complimentary to the lounge and I was able to enjoy a nice cappucino while waiting for my flight.

At the time of my flight, I was able to breeze through check-in as the Boeing 777-300 only has 8 first class seats. There was no line and there was even a lady waiting at the terminal for first class passengers to make their experience better. Once I got on board, I was treated to the first class experience and I even enjoyed a nice champagne as they waited for the other passengers to board.

The first class suite seats are a first for me. It is great to have your own private suite complete with outlets, bigger TVs for digital entertainment, noise cancelling headphones, and full reclining flat bed seats. The only thing lacking is a separate door to make the experience fully private but I cannot really say a negative as this would be my first ‘first-class’ experience on the plane.

Once the flight was in the air, they started the meal. I got the japanese style meal and it was delicious.It was an eight-course meal where each course was served with a custom and detailed plating and high quality ingredients. I don’t want to go into very detailed meals of each course but I can say that the seafood was delicious. If you want a western style experience, they also have rib eye steak but it is corn-fed so I wouldn’t say you get as much value.

The stewardesses were very generous and allowed me to sample many different red wines, white wines, green tea, and coffee. I particularly enjoyed their premium sake that the stewardess said I would enjoy and she was correct! It had a nice subtle dryness and a nice light sweetness that made it very delicious and enjoyable with the meal.

Their lobster course was excellent. They made it really easy to take the lobster off the shell and surprisngly really delicious and still fresh while being served on the plane.


They also had a very delicious “Sashimi” style shrimp and flounder plate that was the best part of the course. Very fresh still and very delicious.

I wasn’t too fond of the rice with crabmeat but most people would enjoy it still.

The miso soup was different than the normal powder miso you get at the restaurant. It had a radish and tofu and it tasted really homemade. It wasn’t too salty either.

If you enjoy tea, you will particularly like Japan Airlines for their green tea and black tea. Both are very high quality and you can still see the powder from the teas as you drink. I had a couple of each and they even gave me more when I finished the tea. Their coffee was a bit bitter and they probably could use a higher quality blend with a better creamer.

The coffee was better used with their delicious ice cream. The ice cream was very cold and still frozen so it made perfect sense to make it a abogada by smothering the ice cream in warm coffee.

Once the meal is completed, they get everyone ready to sleep even though it is considered 3PM in Pacific time. It is late in the evening in Japan and it is a good start to getting rid of Jet Lag. They have a nice bedding setup for you. They will put on a nice mattress padding with either soft or hard depending on your preference. They also provide you a comforter and a sleeping pillow to sleep. This is a different pillow than the back pillow that you get when you board.

You are also given comfy pajamas to enjoy your flight. They will take your clothes and store it in a locker (I presume). Their bathroom is complete with toothbrushes, mouthwash, and some lotions for you to use. They also give you a nice travel bag complete with sleepy goods, dental goods, and lotion.

For those that don’t want to sleep, you can enjoy the in-flight entertainment with the latest movies. They also have music and games. All entertainment is scripted in japanese and I needed the help of the flight attendant to choose my movies but they do have some recent english movies that make it easy to watch.

Overall, you will have a great time boarding with Japan Airlines. I would like to continue venturing other first class services but I’ll have to do well with investments before venturing in too many. In the meantime, you must continue to invest for the long-term in strong companies. As for the companies that I mentioned before, you will continue to do well with holding AIG for long-term. I recommend it and I believe it will be a nice winner for many years. For a more riskier play, I suggest Ford (F) as the stock is still low and there is a lot of potential for it to move bullishly for 2015 and 2016. They have a great line-up of new cars and a new Ford F-150 that is all aluminum that should do well going forward.

Ford F-150 means Big Stock Move Up!

Ford has started production on their new F-150 aluminum truck.  This is their best seller vehicle and this is poised to bring their stock back up.  There has been a lot of bearish pricing in the stock this year since they have not hit their numbers and their guidance has been down.  The reason is they are investing in the future.  They have spend lots of money on their new models and they are willing to sacrifice short-term gains for future growth.  This actually worked to their advantage.  Not only has gas price decreased significantly since the start of the year but customers still have aging cars that need to be salvaged.

They are in great position for 2015 and their stock is in a great position to be purchased!  Even if the stock doesn’t move at all, you still get a nice 3.5% dividend to be patient.  Try doing that in a money market account or CD.  You are paid to be patient.

Remember they still have a great line of vehicles coming out for 2015 including the Ford Mustang, C-MAX, Escort, and more.  I recommend getting in while its low.

Disclosure: I own F for the long-term potential gain.

Ford Still Looking Strong

Ford has a big drop around 10% in the past week.  They had a conference call that stated they would be lowering 2014 forecasts.  This meant they would be in-line with 2013’s forecast, their profits would be less, their revenue would be still increasing, but the earnings would be less than they had forecasted in the past.  The profit margins were expected to be 10%+ but instead it will be in-line with 2013 at 8-10%.

This drop is a short-term occurrence that will be a small blip in their future.  Remember, they are still a small-cap car company if you compare them to Honda (HMC) and Toyota (T).  They will have 23 new cars coming out in 2014 and they stated the marketing budget would reduce their profit margins.  Yes, this is short-term weakness but for the long-term holder they will do really well.  Remember, by making this international play, they will become an international growth play not just a North American growth stock.

Ford – The American Muscle Becomes International Muscle

Ford has been a very good stock for the past year.  It has almost given a 100% return and there’s no doubt that it will hit this mark in the next few months.  The stock currently has been trending up and down for the past 6 months.  It’s time for it to make it’s move up again.  Technically, you can see that it really hasn’t moved much but by all means it is on an up-trend still.

Fundamentally, Ford has been making great strides to grow it’s market share internationally.  It already has taken back the North American market by storm.  Their car sales are off-the-charts and they are continually breaking new highs.  In China, they are growing rapidly.  Their Ford Fusion fits the bill for many of the chinese population as it’s affordable and it gets great mileage.  In Europe, they are just starting out.  They are building factories and increasing their growth into the market.

They are not as big as Toyota or Honda but that gives them more room to grow.  First, their PE ratio is lower than these car giants; however, they also have such a small share of the market in international countries that they can rapidly make their footprint bigger.  This means better stock prices and better growth ahead for them.

This is a great long term play.  Their stock is currently trading at $16.91 and this would be a good entry.

Missing out on the Great Deals

When the DOW went below 11,000, I should have taken that as a sign to put more cash into the stock market.  There were blue chips that were being rocked hard and taking a huge beating.  The four stocks particularly were Fannie Mae (FNM), Freddie Mac (FRE), General Motors (GM), and Ford (F).  These were all great short buy candidates and they all sky-rocketed at the end of this crazy week.

The early part of the week had the DOW hitting new lows.  Fannie Mae and Freddie Mac, two of the most renown mortgage loan companies, were stating they they had finally made too many foreclosed loans and they would have to find ways to establish funding.  These two companies are the life-line of 50% of America’s mortgages.  It would be a huge shame of they were to go under.  Stock prices dropped to less than $10 on each company as people started short selling to stock.  I knew these companies would eventually be funded by the government.  They will not let these companies take down the economy.  It would be a disaster in the United States’ economy.  I should have seen these signs and bought early.  Both of these stocks doubled at the end of the week.

The next two companies made a pretty fast drop this year to which one company hit a 50-time all year low and the other hit a low not seen for 20 years.  These are both America car companies that have been running since the beginning of the Industrial Revolution to which one had created the first car and the other, General Motors, has been a respectable car company building cars for the United States since the early beginnings.  These two were a harder speculation because oil could have kept going down.  Both of these stocks increased to 20% at the end of the week.