F, daily
F, monthly
Summary
I'm one of the first who will whine about grossly over-valued stocks, but despite today's earnings, I simply can't remotely tout Ford as anything other than grossly under-valued.
Even with the earnings miss, Ford is generating around $2 EPS a year... that works out to roughly a PE of just 6.
6.
Just reflect on that for a moment.. and then consider the following (trailing) PEs...
AMZN: 309
FB: 76
NFLX: 286
Even AAPL is 12
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| The mainstream cheerleaders are spooked |
From a pure price perspective, next support is around $12, 10, and then $8.
I do not expect any price action <$10.
Typically, after a major earnings miss, a stock will trundle lower for some days, and take a few weeks to cement an initial floor.
So... even if the sp'2250/2300s by October, Ford could still be lurking in the 13/12 zone.
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Not on the fence
My argument is that (at the very least) Ford should be valued at least equal to the market average.
Ford is arguably trading around a third of what it should be. Yours truly would seek Ford to at least double.. if not triple the current valuation to the 25-35 zone.. which is a monstrous increase since the Nov'2008 low of $0.85. The yield is around 4.5%... around 3x the US 10yr bond!
As I often say lately, or perhaps you'd prefer a negative yield bond from Japan, or the EU?
