Friday, June 09, 2006

Ford an astute buy?

Is Toyota really worth fifteen times as much as Ford? Twelve times more than GM? In spite of yet another credit downgrading and a brutal session for the market, it climbed a little at the end of the week. Ford's market cap is less than $13 billion but it has $21 billion of cash and equivalents on hand. Something individual investors might want to consider. Two of the three indicators I use in my 'correlation meta-analysis' point to a recovery.

(Personal use)

3 comments:

daveg said...

I bought some at 8. It yields 5.9% right now, but the threat of BK is real...

The unions will bring the company down before they give a good deal...

Honestly, we need national health care of some sort. These companies are paying the lions share of the burdren, including for the uninsured...

crush41 said...

daveg,

The dividend yield is among the best the blue chips have to offer.

Maybe we need to eradicate the PBGC and make it clear to the UAW and others that if Ford and GM fall, so do they. Non-public union membership stands around 8% (in the public sector it's around 35%). These ridiculous rubber rooms have to go.

adog said...

Toyota has busted through the roof over the last year. The p/e is getting pretty high, and low cost competitors are making gains in quality (Hyundai for example). Though that's no reason to buy an American dinosaur either.