Watching Ford

As I wrote in my article, I am watching Ford today to find an entry point. The UAW has set a date of midnight tonight (September 14th) to reach an agreement with GM, the lead in the negotiations.

In my mind, the stock being at the lower end of its 1 year trading range, and the unsettlement in the UAW agreement may present a buying opportunity.

The risk is that a strike happens, but I am willing to speculate that strikes can be avoided.

If this is a trade rather than an investment, I would be a bit hesitant to commit so soon. The economy is not doing its best right now and an auto play could be dead money for a while. I got into GM a few years back at 25 but I recently got out at 32. Made a good profit, but honestly I would never do it again. Just up and down rides, for no reason, sometimes at the whim of analysts... not worth the trouble.

At under 8, Ford is not too bad, but really with a market cap of 16 Billion, it is not a huge deal either. GM would probably be the better play if you could get it for under 30... as was the case last week. But still it would be a trade, not really an investment.

Personally, I say wait a week, and maybe get Ford for around $7.60. The UAW thing will likely still be on the table next week, so you will not miss much.

Plus on Tuesday we have this whole Fed policy thing, and that will really screw up the market either up or down, or both...

I've learned never chase a stock for an entry point, investing is better than trading, and that auto stocks are a real hassle.

Last but most important. If you are buying a larger position... a thousand or more shares, stagger you entry. Buy a third now, and then a third next week, and then finally, for the last third, wait for a really low price, ($7.50).... if the last one never happens, you are still happy because that means the stock is up. This should be the approach all the time regardless of position size, but in practical terms, if the position is small, trading fees may eat away at the advantage.

Good luck.

I am not putting anything into it that will change my lifestyle, and will simply see if there is a bump that happens in the coming months. Not really chasing the entry point, just seeing how the news of last evening was digested in early trading. I pulled the trigger and now will see how it plays out.

So far so good on my jump into Ford.

Bear Stearns upgraded Ford Today:

http://www.reuters.com/article/marke...0070917?rpc=44

Meanwhile, UAW workers are still working as negotiations continue with GM

Fed decision is also on the horizon.

An upgrade, a postive result in the union negotaions and a fed decision that builds confidence could all help the pps of this equity.

I would have expected the Fed rate cut to provide a better bump for Ford. The car companies deal with a lot of cash, and rates are a crucial part of their business. Perhaps there will be a reaction tomorrow. The union negotiations are still up in the air, but so far so good on my Ford stock play....up 50 cents so far.:D

Ford is one of the stock which has been doing well and definitely any such decision will boost the stock.

so hows that ford investment going? :O

Are You Selling Sirius Short?
By Rick Aristotle Munarriz
February 2, 2009 | Comments (1)

If you drove to work hearing Howard Stern in your Ford Mustang, consider yourself unloved.

Ford (NYSE: F) and Sirius XM Radio (Nasdaq: SIRI) are the country's two most shorted stocks, according to share volume