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2017 Ford F150 3.5 King Ranch
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We’ve been rebalancing our retirement portfolio and noticed that Ford is now in Junk status. I’m new to Fords so I do not know what they need to do to be competitive again. The trucks are world class, but mainly in the American continent. I mean, the price of the trucks is high, and even Ford says they make a huge profit from them. But I guess it’s not enough. I live the trucks but I don’t think they can sustain the company with only truck sales giving the move to electric vehicles and antagonism toward fossil fuels. I’m going to enjoy my truck for as long as I can.


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Their market cap is only 21 Billion. I wonder if someone could just take them over.

I dont really get it because it seems like they sell plenty of suvs and trucks.
 

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2017 Ford F150 3.5 King Ranch
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Discussion Starter #3
Their market cap is only 21 Billion. I wonder if someone could just take them over.

I dont really get it because it seems like they sell plenty of suvs and trucks.
I’m wondering if they can just be a niche market, like Tesla and just sell the trucks. I mean I don’t know, the cars they used to sell were terrible. But the trucks are amazing.


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Ford's credit rating was downgraded to 'junk' (BB+ from BBB-), not the stock. It just means that the cost of borrowing money will be higher.

Last week, Ford suspended dividend payments...they are conserving cash to weather this rough patch. So, not only have Ford shares gone way down in value, but the suspension of dividend payments has reduced income of shareholders.
 

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And the 2 new Bronco's are finally ready to hit the market! Just waiting for this WU-FLU to pass! KM
 

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The 2020 Explorer launch was a mess and their net income tanked over last year.

Now the Bronco and Baby Bronco have to launch into this mess.
I thought a lot of the net income loss was due to the restructuring of the company(IE, elimination of cars in NA and I think restructuring of their dealer networks overseas), not necessarily poor performance. The Explorer didnt help.

Still. I see a shed load of Explorers and F150's around. Even the new explorers are popping up around here and see them fairly frequently.

I think part of the issue might be the instant gratification that the investors/shareholders expect quarter over quarter. The plan to axe cars and restructure was not something that was gunna happen over night and result in instantaneous profits. That would be a longer term thing.
 

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<snip>
I think part of the issue might be the instant gratification that the investors/shareholders expect quarter over quarter. The plan to axe cars and restructure was not something that was gunna happen over night and result in instantaneous profits. That would be a longer term thing.
I am one of those investors/shareholders. I'm not looking for instant gratification and instantaneous profits. My outlook is based on a three to five year horizon. I expect an increase in share price over a five year period and a decent dividend. Suspension of dividend payments from Ford was somewhat unexpected...I personally thought they might cut the dividend, but was surprised that they suspended it altogether. It means my income is reduced by $3,000 a year if they don't reinstate it.
 

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I am also one of those share holders. Like Tom I bought the stock for a long term dividend investment. Based onyears of paying that dividend out. A cut I could have understood. Also bought Ford because I like their products. I don't think their cars were crap either. We have owned three Mustangs over the decades and all three were reliable cars. This 2018 F150 is the third new F150 also.
 
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