Don't jump in all at once.
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.
Ford Upgraded - $10.50 target
So far so good on my jump into Ford.
Bear Stearns upgraded Ford Today:
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.
Fed News Did Not Provide A Real Bump
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