Zack Perconti

Ford Motor Company: Recommendation  Buy: Limit at $11.80  Sell: Stop at $13, Limit at $18

Ford Motor Company: Background  Major manufacturer of automotive vehicles.  Founded in 1903 by Henry Ford  Approximately 200,000 employees  90 plants worldwide  Brands include Ford, Lincoln, Mercury, and Volvo, among others.  Headquartered in Dearborn, Michigan

Ford Motor Company : What They Do  World’s 4 th largest producer of Automotive vehicles, including Cars, Trucks, and SUVs  Leader in the field of hybrid technology, and is in the development process of several hybrid vehicles  Most of you have heard of Ford and what they do, so moving right along…

Ford Motor Company : Basic Numbers  Current Price: $11.76  P/E Ratio:  Beta:2.66  Dividend/ Yield:  EPS:-$2.11  52-Week Low:$1.50  52-Week High: $12.14  Market Cap: $3.31B  Institutional Ownership:46% Taken from as of 1/13/10http://

Ford Motor Company : 1 Month

Ford Motor Company : 3 Months

Ford Motor Company : 6 Months

Ford Motor Company vs. S&P 500: 1 Month

Ford Motor Company vs. S&P 500: 6 Month

Ford Motor Company vs. Competitors, 1 Month (F vs NSANY, VLKAY, GM, TM, HMC) Note: GM has not traded stock since its bankruptcy filing and subsequent reorganization

Ford Motor Company vs. Competitors, 1 Year (F vs NSANY, VLKAY, GM, TM, HMC ) Note: GM has not traded stock since its bankruptcy filing and subsequent reorganization

Ford Motor Company: Recent News  Recently downgraded from Buy to Hold by Standpoint Research, citing fact that Ford’s gains have slowed down recently, and saying that they would reinstate the “Buy” rating if the price returned to $9  HOWEVER, Standpoint still projected a target price of $18-$24 by the end of , with analysts generally agreeing that they are on track to meet that goal.  Ironically, this slight decline in the stock’s volatility caused Bank of America and Merril-Lynch analysts to call the stock “distinguished” amongst the rest of the market.

Ford Motor Company: Recent News  Recently downgraded from Buy to Hold by Standpoint Research, citing fact that Ford’s gains have slowed down recently, and saying that they would reinstate the “Buy” rating if the price returned to $9  HOWEVER, Standpoint still projected a target price of $18-$24 by the end of , with analysts generally agreeing that they are on track to meet that goal.  Ironically, this slight decline in the stock’s volatility caused Bank of America and Merril-Lynch analysts to call the stock “distinguished” amongst the rest of the market.

Ford Motor Company : Reasons to Buy  Large, respected company #7 overall on Fortune 500 list of American- based companies, based on global revenues of over $146.3 billion 4 th largest auto maker in the world, 3 rd in US auto sales, occasionally fluctuating to 2 nd or even 1 st  Stock price will continue to rise until it reaches pre-crash levels Just recently set 52-week high, compared to low of $1.50 during auto crisis.

Ford Motor Company : Reasons to Buy  Worldwide markets Has over 90 plants worldwide, and operates in 6 of the 7 continents 4 th in worldwide auto sales Commands a large share of the American and European markets.  2010 North American International Auto Show Ford Focus named “Most significant” vehicle at show by Autoweek magazine. Ford received both the North American Car and North American Truck of the Year awards for the 2010 Ford Fusion Hybrid and 2010 Ford Transit Connect, respectively.

Ford Motor Company : Reasons to Buy  Quality of Product vs. Competitors  Ford Fusion Hybrid won Motor Trend’s Car of the Year award, NAIAS Car of the Year award, amongst others  Ford remained most stable of American auto companies during auto crisis in 2008 Took government loan to shore up emergency cash reserves, has since paid back loan in full Only one of the three companies (Ford, Chrysler, and GM) not to file for chapter 11 bankruptcy protection  After the crisis, Ford underwent a reorganization that “trimmed much of the fat” from the company, shedding unprofitable brands through sale or closure, leaving a core company that is highly profitable and has room to grow.  Ford’s large gains make it an excellent stock for a long-term investment; we may want to consider dropping the limit sale entirely and holding the stock in our portfolio for an extended period of time.

Ford Motor Company: SRI  Ford has shown a commitment towards developing more environmentally-friendly, by researching and developing Hybrid vehicles with better than the industry standard mileage ratings.  In 2008, sales of Ford Hybrid cars and SUVs increased by 73%  One of the most popular vehicles, the Ford Fusion Hybrid, gets an estimated 41 mpg in the city and 36 mpg on the highway, topping its new main competitor, the Toyota Camry hybrid, by 8 mpg and 2 mpg, respectively.  Ford Escape SUV hybrids have been favored by government rescue services due to their durability and fuel efficiency (34 mpg city, 31 mpg highway), and have been provided by Ford at a reduced or, in at least one instance (LA county lifeguards, division of LA county fire department), no cost.

Ford Motor Company : Competition  Nissan Motors (NSANY)  Primarily Asian Markets  Relatively stable stock - has remained in the same price range for an extended period of time  How many people do you know that drive a Nissan? Really?  Volkswagen (VLKAY)  Initially sponsored by Nazi’s  Lacks the large American and Asian markets that Ford has.  General Motors Company ( They don’t get a ticker symbol )  Hasn’t even traded stock since Chapter 11 bankruptcy filing and subsequent reorganization last year!

Ford Motor Company : Competition Continued  Honda Motor Company LTD (HMC)  Primarily Asian markets  Consistently outsold by Ford worldwide  They’ve got a weird name. (Honda?)  Toyota Motor Corporation (TM)  Occasionally outsold by Ford in US  At $90.93 as of 1/14/10, the price is considered inflated by some analysts, and is also way out of our price range…  Does not have the European market share commanded by Ford.  They make the Prius…that car is way too political these days  Their ticker symbol is the same as the trade mark sign ™, and therefore makes for confusing situations. (TM™)

Citations 1. named-26lsquomost named-26lsquomost ?reflink=MW_news_stmp 14?reflink=MW_news_stmp