AerospaceFan
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Just Bought Ford At $8.30

Thu Feb 16, 2006 12:24 am

Ford is in big trouble against Toyota, etc., but so are other U.S. auto companies. I decided yesterday to buy Ford at its current market price, and the order was executed today.

Hell, who knows? It may go down. It may file for bankruptcy. But historically, Ford has sold at much higher stock prices. So, I'm taking a calculated risk. Not a lot of dough is involved, but enough to make it interesting.  

[Edited 2006-02-15 16:26:55]
What's fair is fair.
 
jamesbuk
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RE: Just Bought Ford At $8.30

Thu Feb 16, 2006 12:29 am

Huh?!?!


Rgds --James--
You cant have your cake and eat it... What the hells the point in having it then!!!
 
MattRB
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RE: Just Bought Ford At $8.30

Thu Feb 16, 2006 12:30 am

Ouch. You'd be better off investing in JNJ, PG & CL.. much more stable over the long run and they're solid dividend paying stocks.
Aviation is proof that given, the will, we have the capacity to achieve the impossible.
 
AerospaceFan
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RE: Just Bought Ford At $8.30

Thu Feb 16, 2006 12:32 am

Quoting MattRB (Reply 2):
Ouch. You'd be better off investing in JNJ, PG & CL.. much more stable over the long run and they're solid dividend paying stocks.

I'm pleased to say that all my stocks did well yesterday (good day for Wall Street) except one -- a start-up energy stock.

I'm willing to lose all of my Ford investments based on the odds. Ford is a mainline company and I think it will survive. Hope, that is.

I also own Boeing -- owned it since it was low, and now it's at a pretty damn good price.  

As far as the range of stocks I own, I basically create my own mutual fund -- I diversify across various industries, from energy to aerospace to software to medical.

Thinking about selling Pfizer, for example.

[Edited 2006-02-15 16:34:13]
What's fair is fair.
 
AvObserver
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RE: Just Bought Ford At $8.30

Thu Feb 16, 2006 10:27 am

Ford isn't dead yet and is making painful but necessary decisions to survive. I believe they're doing all they can do; hopefully, the UAW will mostly cooperate. Can't say it'll be enough, given U.S. car buyers over-infatuation with foreign brands but I think Ford has a fighting chance to make it, albeit as a smaller player than before.
 
AerospaceFan
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RE: Just Bought Ford At $8.30

Thu Feb 16, 2006 11:48 am

Quoting AvObserver (Reply 4):
Can't say it'll be enough, given U.S. car buyers over-infatuation with foreign brands but I think Ford has a fighting chance to make it, albeit as a smaller player than before.

My understanding is that Ford and certain other automotive companies are doing a lot better overseas than here.

I want to show my pride in American-made products, so that's part of my justification for purchasing Ford. Sadly, I do realize that many of these products, even from American companies, are actually substantially made in foreign countries. That's not that good from a labor point of view.

In fact, I'm going to be placing another order for a small purchase of Ford very soon.
What's fair is fair.
 
AeroWesty
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RE: Just Bought Ford At $8.30

Thu Feb 16, 2006 12:39 pm

Just out of curiosity, could you look on your trade confirmation to see where the trade was executed? It'll either list an exchange (usually by a code letter or number) if it was done as a broker trade or indicate it was crossed in-house as a principaled trade. I'd also be interested if you went through a traditional or discount broker. (No need to specify which one, or give out any personal details--as a former licensed 7 I keep track every now and then how trades are being done these days by different houses.)
International Homo of Mystery
 
AerospaceFan
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RE: Just Bought Ford At $8.30

Thu Feb 16, 2006 12:51 pm

Quoting AeroWesty (Reply 6):
It'll either list an exchange (usually by a code letter or number) if it was done as a broker trade or indicate it was crossed in-house as a principaled trade. I'd also be interested if you went through a traditional or discount broker.

Market is "Other U.S. Registered" -- that is, other than NYSE, Chicago Board, ASE, and a number of others.

It's an agented trade, as far as I can tell.

And I used a discount broker. Hell, I can do my own research these days.

This was from a trade on the 14th for the first part of the Ford buy. (By far the larger part was executed today. I don't have the trade confirmation info for today's.)

[Edited 2006-02-16 04:54:38]
What's fair is fair.
 
AeroWesty
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RE: Just Bought Ford At $8.30

Thu Feb 16, 2006 12:53 pm

Quoting AerospaceFan (Reply 7):
It's an agented trade

Interesting, thanks. Looks like they sold it to you out of their own inventory (not an uncommon thing these days at discount brokers).
International Homo of Mystery
 
AerospaceFan
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RE: Just Bought Ford At $8.30

Thu Feb 16, 2006 12:57 pm

Quoting AeroWesty (Reply 8):
Interesting, thanks. Looks like they sold it to you out of their own inventory (not an uncommon thing these days at discount brokers).

No prob. I have a number of brokerages I use. One has real-time streaming basically free at my level, which is always fun to watch.
What's fair is fair.
 
AeroWesty
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RE: Just Bought Ford At $8.30

Thu Feb 16, 2006 1:00 pm

Quoting AerospaceFan (Reply 9):
I have a number of brokerages I use.

I could never do that, it dilutes my cumulative margin! LOL
International Homo of Mystery
 
comorin
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RE: Just Bought Ford At $8.30

Fri Feb 17, 2006 1:56 pm

I wish you the best with your Ford stock!

Not to be a Wisenheimer, but here are some thoughts:

1. You bought a stock at a market clearing price of $8.30, so the probability of it going up or down is 50% (at equilibrium).
2. You also bought a downward trending stock, so your trading hypothesis is that any stock trading below its historical mean will eventually regress upwards.
3. You are taking a lot of risk (I'm willing to lose all my Ford investments given the odds") in the long-shot hope that you will make a killing. This is part of a speculative, not an investment portfolio.
4. You are not investing in Ford, but in secondary market paper that trades in a sliver of ownership in exchange for any claims on the company's assets.
5. As an individual investor, you are holding an unhedged position, and took on considerable risk. While not helping Ford in any way, you are certainly helping the portfolio managers of the world with your risk appetite. Most portfolio managers will have less risk and higher total returns in their Ford holdings, using Credit Default Swaps and possibly owning Ford debt at attractive yields.
6. You want to help Ford? buy a car, not their stock.

Everytime I get an irrational impulse to buy stock, I support Boeing and GE and buy a ticket to the Caribbean, ensuring a great return on my investment!

All said and done, I do wish you much success.
 
DfwRevolution
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RE: Just Bought Ford At $8.30

Fri Feb 17, 2006 3:16 pm

Quoting AerospaceFan (Thread starter):
. But historically, Ford has sold at much higher stock prices. So, I'm taking a calculated risk.

Well... that's the thing about penny stocks, you can either win big or just lose some.

A good investments these days is the I Savings bond. You can purchase a bond at almost any increment. You are garunteed the principle investment no matter what and can cash your money at any time. You are protected from inflation, and interest rates right now are around 6.9%, you can withdraw the interest after five years, or let them accrue through 30 years.

Invest $3,000 now and you'll have $12,000 in twenty years.
 
AerospaceFan
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RE: Just Bought Ford At $8.30

Sat Feb 18, 2006 1:42 am

Well, you know, I have a conventional view of investing.
What's fair is fair.
 
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casinterest
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RE: Just Bought Ford At $8.30

Sat Feb 18, 2006 2:14 am

Hmm, I tried Ford awhile back, and they lost me money. i am not ready to jump on GM or Ford until I see a lot of improvement in quality, mileage, and image. I wish you good luck as 8.30 seems like a good in price.

My best move so far in the last 2 months was moving into Best Buy after they got downgraded and went to 43in December. They are currently in the 54+ range. Nice return on investment. Anyone got suggestions for my next stock candidate?
Older than I just was ,and younger than I will soo be.
 
AerospaceFan
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RE: Just Bought Ford At $8.30

Sat Feb 18, 2006 2:19 am

Quoting CasInterest (Reply 14):
Hmm, I tried Ford awhile back, and they lost me money. i am not ready to jump on GM or Ford until I see a lot of improvement in quality, mileage, and image. I wish you good luck as 8.30 seems like a good in price.

Of the two remaining U.S. auto companies (as I no longer consider Chrysler to be fully American, since it is owned by a German firm), I believe that Ford has demonstrated a recent change in leadership that has the potential to shake things up. Ford recently laid off a number of workers and its current leadership was written up in TIME to some positive effect, in my view.

Lay-offs are not good news for labor. However, it does indicate, in my experience, that Wall Street will be looking at Ford with renewed interest. I have always believed, as well, that Ford's international position has been relatively secure.

Regarding your question, regrettably I am not in a position to give stock tips in this Forum, but I hope that you will review company fundamentals and reasonable prospects and invest wisely on that basis.

I bought Boeing when it was about 60% of its current price, and I haven't looked back.

[Edited 2006-02-17 18:23:05]
What's fair is fair.

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