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Ford Motors - When Everything Seems To Be Going Against You

While the Ford Motor Company (F) certainly has headwinds, I would hazard a guess that the average investor isn't expecting liftoff any time soon. In fact, I believe that most Ford Motors investors are holding stock for the 5.2% dividend not for expectations of any near-term growth.

"History is more or less bunk" - Henry Ford

The stock is down 9.9% year-over-year and is getting whipped by its peers, down over 30% against the GICS Automobile Manufacturers sub-industry. But a stock's price history doesn't forecast its future prospects. As Henry Ford once said, "History is more or less bunk". Applying Henry Ford's wisdom to the stock market, we can say that the past is somewhat irrelevant. Ford Motor's current stock price may be indicative of more trouble to come but it also may provide a great contrarian opportunity.

Consumers Aren't Spending

The U.S. market is a major source of heartburn for Ford Motors investors as auto sales have been dropping (plummeting might be a better word) and there is a lingering fear that this is just the beginning with some analysts believing that auto sales could shrink to 15 million per year by 2021.

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Source: https://seekingalpha.com/article/4087493-f...
by Steve Auger