Ford A Sell Until Further Notice

Ford Motor Company’s (F) market share is likely to fall continuously due to its inclination to push pickup truck sales. The company is facing overcapacity, which leads to weak pricing. Moreover, costs are higher due to product launches and higher incentives.

The company dropped its plans to become profitable by 2009 due to a difficult operating environment including an uncompetitive cost structure. These lead us to rate the stock a Sell and set a six-month target price of $1.00.

On November 7, 2008, Ford Motor Company reported third quarter results for 2008. The company reported a net loss of $0.06 per share, compared to $0.19 per share in the year-ago quarter. Third quarter revenue was down 22% to $32.1 billion. The decline reflects lower volume, the sale of Jaguar and Land Rover, changing product mix and lower net pricing, partly offset by favorable changes in currency exchange rates.

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