Thursday, October 27, 2011

Ford

COMPLETE ARTICLE AND GRAPHS

Ford (F) keeps on beating estimates and this quarter it again beat estimates of earnings by about 2 cents a share.  I like stocks that under promise and over deliver.  Consumers seem to be attracted to the new product line of smaller but well equipped offerings and investors seem to like the new meaner, more agile Ford company.  As usual there are no secrets on Wall Street and the stock moved upward well ahead of its earnings release on 10/26 as this hourly price graph provided by Barchart illustrates.  The stock has been moving up daily since October 4th:




Barchart technical indicators:

  • Barchart's technical indicators use various technical signals ranging from 7 day to 6 months to determine a stock's price trend.
  • 60% Barchart short term technical buy signal -- the sell signals still in place are beginning to weaken.
  • Trend Spotter technical buy signal.
  • Traded recently above its 20, 50 and 100 day moving average.
  • Although the stock made 10 advances and is trading up 19.57% in the last month it is still trading around 36.22% below its 1 year high.
  • The Relative Strength Index is 31.50% and rising.
  • Barchart computes a technical support level at 11.45.
  • Recently traded at 12.10 with a 50 day moving average of 10.71.

Summary:  Don't expect Ford (F) to turn around over night; it takes time for a battleship the size of Ford to reverse itself.  Short term traders may make some quick money but long term investors who are willing to wait may see annual returns in the 20% - 24% annual total return range over the next 5 years.  The 2 best factors in my book at a 36.22% discount form its 1 year high and a 5.8 P/E ratio.  Quite a bargain.

Jim Van Meerten is a Marketocracy Master


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