bzcat Posted January 15, 2016 Share Posted January 15, 2016 (edited) Didn't Fields just say that growing revenues and profits are Fords priorities ahead of worrying about boosting the price. More to the question, why is GM continuing to spend cash reserves to buy back stock? What possible reason is there to do that at this time? Shareholders in the US generally prefer stock buybacks instead of dividends. US capital gains tax rate is very low compare to income tax rates. On a total return basis, investors holding GM stock would pay less taxes (and thus have higher effective return on investment) if GM stock price goes up (which the buy back will help accomplish) vs. higher dividend (which is subject to income tax rates). Edited January 15, 2016 by bzcat 1 Quote Link to comment Share on other sites More sharing options...
kyle Posted January 15, 2016 Share Posted January 15, 2016 And yet Ford stock is down 3% so far today. ???? Well like Silvrst said-good time to buy more stock!!! Quote Link to comment Share on other sites More sharing options...
kyle Posted January 15, 2016 Share Posted January 15, 2016 There is a couple of reasons Ford stock took a beating: 1. All stock took a beating. In case you haven't noticed... all sectors are down since the beginning of the year. Large cap, mid cap, small cap, international etc. 2. Ford's growth is mostly happening in China (like every other car company) and China's economy is showing signs of recession. 3. The US market is driving Ford's profit margin but the US market appears to be peaking... hard to imagine sales continue at the pace it did at 2015 without someone opening the incentives spigot. 4. Despite the $4.5 billion investment in EV, Ford hasn't offered any clear indication of how it will enter the market. Other car companies have offered more compelling narratives and outlined product initiatives. Ford is being very quiet on what new EV or PHEV it will bring to market. It's probably deliberate but the perception is that Ford is now lagging behind after it raced ahead with Fusion and C-Max PHEV. 5. No good news in South America and Russia, two regions that Ford had previously counted on delivering some profits. Thanks for the insight-sounds like a few people were partially correct in their perspective. 1 Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted January 15, 2016 Share Posted January 15, 2016 Also, Ford has shown little to no interest in their stock price. Investors prefer a company that caters to them. 2 Quote Link to comment Share on other sites More sharing options...
Biker16 Posted January 15, 2016 Share Posted January 15, 2016 See the bolded part. You said they were not investing in new products, but here you state that they ARE spending the money! And how do you know what the investment does or does not replace? You invest in companies that have a plan, telling me that you are spending money, isn't the same thing as spending money towards a goal or a target. that signals that you have direction of where You want to be, and the investment is what will take you there. Ford hasn't provided IMO concrete targets or strategy that captures the mind of investors, or allows investors to judge how well they are executing. example could be Long product cycles Are usually a sign of weakness not of strength, unless this is part of a larger plan, This looks like Ford is sacrificng investment in new Products to make their profits larger. Quote Link to comment Share on other sites More sharing options...
akirby Posted January 15, 2016 Share Posted January 15, 2016 Why on Earth would Ford broadcast their long term plans to the competition? If that makes their stock take a hit, so what? Compare Ford's new powertrains, new vehicles, new platforms, new technology with Toyota and tell me who is resting on their laurels? Just because Ford isn't publicizing investment in what YOU think they should be doing that doesn't mean they're not investing in the future. Ridiculous. 4 Quote Link to comment Share on other sites More sharing options...
Biker16 Posted January 15, 2016 Share Posted January 15, 2016 Why on Earth would Ford broadcast their long term plans to the competition? If that makes their stock take a hit, so what? Compare Ford's new powertrains, new vehicles, new platforms, new technology with Toyota and tell me who is resting on their laurels? Just because Ford isn't publicizing investment in what YOU think they should be doing that doesn't mean they're not investing in the future. Ridiculous. We will have to agree to Disagree. Quote Link to comment Share on other sites More sharing options...
fordmantpw Posted January 15, 2016 Share Posted January 15, 2016 You invest in companies that have a plan, telling me that you are spending money, isn't the same thing as spending money towards a goal or a target. that signals that you have direction of where You want to be, and the investment is what will take you there. Ford hasn't provided IMO concrete targets or strategy that captures the mind of investors, or allows investors to judge how well they are executing. example could be Long product cycles Are usually a sign of weakness not of strength, unless this is part of a larger plan, This looks like Ford is sacrificng investment in new Products to make their profits larger. So, what do you want Ford to do? Say, "Hey, we are spending $4.5B to attain a goal of having a car that can travel 250 miles on electric, recharge in 35 minutes, and produce it's own fuel at the same time." Seriously, you are likely one of the few that thinks Ford is just spending that kind of money just for the sake of spending money and not spending to reach a goal. Just because they don't tell you the goal or target doesn't mean they don't have one. Some things are better kept internal, regardless of stock price. Quote Link to comment Share on other sites More sharing options...
Edstock Posted January 15, 2016 Share Posted January 15, 2016 Just because they don't tell you the goal or target doesn't mean they don't have one. Some things are better kept internal, regardless of stock price. Especially when the company is re-building itself. Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted January 15, 2016 Share Posted January 15, 2016 Ford hasn't provided IMO concrete targets If stock prices moved as logically as you seem to think they do, almost anyone could make a fortune by investing in the stock market. The market is, and has always been, incredibly unpredictable. Therefore your prescriptions for improving Ford's share price are nothing more than guesses based on your own singular interpretation of the market. 1 Quote Link to comment Share on other sites More sharing options...
jpd80 Posted January 15, 2016 Author Share Posted January 15, 2016 (edited) Ford hasn't provided IMO concrete targets or strategy that captures the mind of investors Speculators, or allows investors Speculators to judge how well they are executing. Change Investors to short term speculators and I agree with everything you just said. The stock price fluctuations we see buying and selling are mostly those people moving in or taking their profits by either selling long or short.. Edited January 15, 2016 by jpd80 Quote Link to comment Share on other sites More sharing options...
bzcat Posted January 19, 2016 Share Posted January 19, 2016 (edited) Another problem with Ford stock is that it is a family owned business. Companies with this kind of separate restricted stock setup tend to under perform the market (quite significantly) because investors understand that ultimately, the controlling shareholders can dictate the direction of the company's business. Institutional investors buy Ford stock primarily for the dividend yield because the growth prospect (of the share value) is quite limited as long as the Ford company owns an outsized controlling share while the public only participates in the relatively worthless common stock. Edited January 19, 2016 by bzcat Quote Link to comment Share on other sites More sharing options...
Biker16 Posted January 19, 2016 Share Posted January 19, 2016 Change Investors to short term speculators and I agree with everything you just said. The stock price fluctuations we see buying and selling are mostly those people moving in or taking their profits by either selling long or short.. all investing is speculatuion on the company's future performance, isn't it? Quote Link to comment Share on other sites More sharing options...
mackinaw Posted January 20, 2016 Share Posted January 20, 2016 all investing is speculatuion on the company's future performance, isn't it? In most cases, yes, but not always. I’ve owned Ford stock longer than some people on this list have been alive. I have bought and sold Ford stock, always at a profit, but have a “core” amount of Ford stock that I’ll never sell. I just like the company. Quote Link to comment Share on other sites More sharing options...
jpd80 Posted January 20, 2016 Author Share Posted January 20, 2016 (edited) Edit. What mackinaw just said...proving that you can be both a speculator and a long term investor. Anyone care to guess what happens to stock price after 2015 report? Edited January 20, 2016 by jpd80 Quote Link to comment Share on other sites More sharing options...
akirby Posted January 20, 2016 Share Posted January 20, 2016 (edited) It's gotten so ridiculous that a company can post a great result but if it's less than what the "analysts" predicted then people sell. Even if the "analysts" predictions were completely unreasonable. Edited January 20, 2016 by akirby Quote Link to comment Share on other sites More sharing options...
Biker16 Posted January 20, 2016 Share Posted January 20, 2016 In most cases, yes, but not always. I’ve owned Ford stock longer than some people on this list have been alive. I have bought and sold Ford stock, always at a profit, but have a “core” amount of Ford stock that I’ll never sell. I just like the company. your behavior isn't recommended for most investors. Quote Link to comment Share on other sites More sharing options...
jpd80 Posted January 20, 2016 Author Share Posted January 20, 2016 your behavior isn't recommended for most investors. You either do that or be prepared to take a huge hit. Quote Link to comment Share on other sites More sharing options...
mackinaw Posted January 20, 2016 Share Posted January 20, 2016 your behavior isn't recommended for most investors. Your forgetting dividends. Depending on how much stock you owe, the amount of dividends you get can be substantial. Quote Link to comment Share on other sites More sharing options...
fordmantpw Posted January 20, 2016 Share Posted January 20, 2016 Your forgetting dividends. Depending on how much stock you owe, the amount of dividends you get can be substantial. Exactly! It's not all about stock price. When you're in it for the long haul (as I am), the dividends can mean as much, if not more, than the stock price. If you don't sell your stock, you don't even notice the drop in price. On paper, sure, but not in hard dollars if you hold on to it. Unless, of course, the company goes bankrupt, which is why I think Ford is a safe bet. The family has too much stake in the company to let it go bankrupt. I'm hoping to build up enough Ford stock that the dividends will pay my health insurance when I retire. Tax free, of course, since it's in my ROTH. Quote Link to comment Share on other sites More sharing options...
Biker16 Posted January 20, 2016 Share Posted January 20, 2016 Your forgetting dividends. Depending on how much stock you owe, the amount of dividends you get can be substantial. Exactly! It's not all about stock price. When you're in it for the long haul (as I am), the dividends can mean as much, if not more, than the stock price. If you don't sell your stock, you don't even notice the drop in price. On paper, sure, but not in hard dollars if you hold on to it. Unless, of course, the company goes bankrupt, which is why I think Ford is a safe bet. The family has too much stake in the company to let it go bankrupt. I'm hoping to build up enough Ford stock that the dividends will pay my health insurance when I retire. Tax free, of course, since it's in my ROTH. Soo.....stock price no longer matters, I'll have to remember that. Quote Link to comment Share on other sites More sharing options...
fordmantpw Posted January 20, 2016 Share Posted January 20, 2016 Soo.....stock price no longer matters, I'll have to remember that. Yeah, because that's exactly what mackinaw and I said. Geez, dude. Do you have any reading comprehension at all? Quote Link to comment Share on other sites More sharing options...
probowler Posted January 20, 2016 Share Posted January 20, 2016 Soo.....stock price no longer matters, I'll have to remember that. 3 Quote Link to comment Share on other sites More sharing options...
mackinaw Posted January 20, 2016 Share Posted January 20, 2016 Soo.....stock price no longer matters, I'll have to remember that. I gather you’re unfamiliar with investing. Of course stock price is important, but don’t discount dividends. Ford issues dividends regularly, which comes from their profits. Ford pays me a dividend every three months no matter if their stock price is trading high or low. And believe me, they can add up. Each year I’m amazed how much money I make on dividends. Quote Link to comment Share on other sites More sharing options...
akirby Posted January 21, 2016 Share Posted January 21, 2016 And you wonder why we don't take you seriously.... 2 Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.