Ford stock downgraded = improved Maverick chances???

[Jayna]

Today Ford stock was downgraded to a sell:

Ford stock is now a ‘sell’ at UBS as an oversupply problem looms

Maybe an increased chance at the Maverick I ordered... Here are the highlights from the Market Watch article link above:

" Shares of Ford Motor Co. were hit hard Monday by UBS analyst Patrick Hummel’s recommendation that investors sell, as the auto industry is facing a worrisome U-turn from undersupply to oversupply. "​

​

"“We think it will only take 3-6 months for the auto industry to end up in oversupply, which will put an abrupt end to a 3-year phase of unprecedented OEM [original equipment manufacturer] pricing power and margins,” Hummel wrote in a note to clients."​

​

" Hummel noted that Ford has already warned about having more vehicles in inventory than expected, and above payments to suppliers running about $1 billion higher than projected, so he sees little margin left for negative surprises in terms of fourth-quarter deliveries and supply costs. "​

What do you think?
Have the odds improved?
Will the dealer additional markups shrink?

Perhaps the fact that they can't keep up with demand means the stock holders aren't making what they should?

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[commadorebob]

for sure, if anything maverick demand will likely increase in a downturn. But that wont save ford. I wouldnt touch a auto manufacturers stock in a recession. Not the place to invest in a downturn.

Technically, during a recession is when you buy auto stocks. If anything, this guy is late to the party. Should have been selling already as Ford is already down 40% on the year.

 

[JASmith]

Investors are saying that because they see a large scale recession coming, when it does a lot of people in line for a new vehicle will drop out due to job losses. Not so much over supply, as a drop in over all demand. That doesn't mean demand for individual vehicles will drop, just the over all market. If anything demand for lower price vehicles tends to increase as the economy gets tighter.

Lower price vehicles tend to be used vehicles. I have an order for a Dodge to arrive in December, I wonder if we should just try to hold out and get a Maverick Hybrid Lariat off a lot come January after all. I refuse to pay over MSRP.

 

[riverrat373]

Not sure about how it'll affect Maverick builds, but if there's a big sell-off and stock price dips a bunch more, might be a good time to buy some of that!

I already have 50 shares of Ford stock. Bought them when the price was $5.00 a share

 

[KSC Grey Ghost]

Not sure who this Hummel is but there is no way in 3 to 6 months that the Vehicle market is going to be flooded with a supluse of new vehicles not sure what he has been smoking or what cave he has been living in but he's full of CRAP !!!!!. The stock market fell to it's lowest POINT IN TWO YEARS TODAY THE LOSES ARE IN THE BILLIONS. CAN YOU SAY RECESSION. !!!!!!!!

 

[Maverickman74]

Im still buying $3-400 a month.

 

[Old Hickory Trojan]

Today Ford stock was downgraded to a sell:

Ford stock is now a ‘sell’ at UBS as an oversupply problem looms

Maybe an increased chance at the Maverick I ordered... Here are the highlights from the Market Watch article link above:

" Shares of Ford Motor Co. were hit hard Monday by UBS analyst Patrick Hummel’s recommendation that investors sell, as the auto industry is facing a worrisome U-turn from undersupply to oversupply. "​

​

"“We think it will only take 3-6 months for the auto industry to end up in oversupply, which will put an abrupt end to a 3-year phase of unprecedented OEM [original equipment manufacturer] pricing power and margins,” Hummel wrote in a note to clients."​

​

" Hummel noted that Ford has already warned about having more vehicles in inventory than expected, and above payments to suppliers running about $1 billion higher than projected, so he sees little margin left for negative surprises in terms of fourth-quarter deliveries and supply costs. "​

What do you think?
Have the odds improved?
Will the dealer additional markups shrink?

No big surprise when Ford has 1000's of vehicles sitting in lots that they can't move. Bad decision building vehicles that lack demand and shorting supply's of vehicles that folks want. Keeping $80k trucks builds using chips that could be used in $25k trucks that has huge demand seems pretty dumb to me. To make profits you need to sell vehicles not just build them to sit...

 

[Mavonorder]

If the fed keeps raising rates at 75 basis points a pop, it wont take long.

High inflation leads to Fed hikes rates/quantitative tightening (destroy money supply)/dollar rises = recession (depression?).

Recession (depression?) leads to Fed cuts rates/quantitative easing (printing money)/dollar falls = worse recession(depression?).

Out of frying pan into fire

 

[Hdscreens]

One thing that would improve Maverick chances would be if Jim Farley was ousted.

 

[skadizzle]

someone is at it again. Just like they did with Gamestop. Spread the false news then wait for people to buy and then sell. To the moon goes Fomoco.

I hope so. I have 40 shares just waiting to dump.

 

[bill67]

One thing that would improve Maverick chances would be if Jim Farley was ousted.

One thing that would improve Maverick chances would be if Jim Farley was ousted.

I doubt a down market would do that. But somebody may look past the end of there nose and ask, we're going full bore toward EV how's that electric grid system doing?

 

[Tiger Dude]

They downgraded GM as well, this is a recession on the way.

 

[Syntax Error]

Hopefully a recession means less demand for the Mavericks, but if anything, their attractive price point might bring in more buyers who need a cheaper car. Who knows.

 

[Joe Kelly]

Today Ford stock was downgraded to a sell:

Ford stock is now a ‘sell’ at UBS as an oversupply problem looms

Maybe an increased chance at the Maverick I ordered... Here are the highlights from the Market Watch article link above:

" Shares of Ford Motor Co. were hit hard Monday by UBS analyst Patrick Hummel’s recommendation that investors sell, as the auto industry is facing a worrisome U-turn from undersupply to oversupply. "​

​

"“We think it will only take 3-6 months for the auto industry to end up in oversupply, which will put an abrupt end to a 3-year phase of unprecedented OEM [original equipment manufacturer] pricing power and margins,” Hummel wrote in a note to clients."​

​

" Hummel noted that Ford has already warned about having more vehicles in inventory than expected, and above payments to suppliers running about $1 billion higher than projected, so he sees little margin left for negative surprises in terms of fourth-quarter deliveries and supply costs. "​

What do you think?
Have the odds improved?
Will the dealer additional markups shrink?

With the current inflation Pressure on raw material to manufacture consumer goods (including Maverick trucks) is driving prices up which will drive consumers out of the market. If we are honest we purchased a Maverick because of the low cost for a good looking truck. The base price of the Maverick has gone up about $3,000 from from the $19;995 original price. The pricing structure of the different packages have changed. These changes are all cost driven by Ford. Econ 101 says when prices go up demand will go down and this is the box Ford finds itself in. if you listen to the news inflation is stripping us of buying power because income is not going up as fast as inflation. For those of us who lived through the 70’s we have lived through a high inflation period. this round 2 for us.

 

[pigsareus]

Not sure who this Hummel is but there is no way in 3 to 6 months that the Vehicle market is going to be flooded with a supluse of new vehicles not sure what he has been smoking or what cave he has been living in but he's full of CRAP !!!!!. The stock market fell to it's lowest POINT IN TWO YEARS TODAY THE LOSES ARE IN THE BILLIONS. CAN YOU SAY RECESSION. !!!!!!!!

not Billions...trillions! : "

Falling stock markets have wiped out more than $9 trillion in wealth from U.S. households, putting more pressure on family balance sheets and spending.

Americans' holdings of corporate equities and mutual fund shares fell to $33 trillion at the end of the second quarter, down from $42 trillion at the start of the year, according to data from the Federal Reserve.

"

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