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Ford stock with a PE of 3.9 is nuts...

Bobinmi

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Ford stock has a PE of 3.9 Nuts....ford stock is very undervalued, even with part shortages, chip issues...this is a company which is still expecting earnings of 11.5-12.5 billion...earnings per share of almost 3.00 pays a 4.9 percent dividend....TSLA on the other hand...has a PE of 107. Ford is very undervalued. My .02 is it is a 25-30.00 stock within 18 months...I would feel very comfortable with a PE of 10.
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Impetus19

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It's hard to argue with you. However the stock has always been a laggard. Almost 5% dividend is nice. If it were to dip below $11 i would probably consider purchasing some.
 
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Bobinmi

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It's hard to argue with you. However the stock has always been a laggard. Almost 5% dividend is nice. If it were to dip below $11 i would probably consider purchasing some.
yes, always has been a laggard...but a PE of 3.9 is very low, even for Ford...and they are paying a nice dividend. GM has a PE of 6.3 and pays a 1 percent dividend and that is a low PE for GM....TSLA has a PE of 102 as of today, pays no dividend. Just doesn't seem right that ford which has the best dividend by far, decent earnings, is such a black sheep.
 

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I dont have much and live pay check to pay check. But I buy $300 of F every month pretty much since it was $7. I have faith in it. Would be real happy if I can get to 1000 shares before it takes off.
 

Impetus19

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From what I have been reading today. Analysts are very down on most car manufactures because they think that car sales will be hit pretty hard with a slow down. Frankly, I think most of that concern is already priced in. That said, i like Ford stock in the $10 range and may consider a position there.

But honestly, what stock isn't tempting at these prices.
 

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Ford stock at these or lower prices is a BIG time long term buy. I have been buying it since last year and I buy more every few days as it has been going down. I’m no pro and I’m not giving anyone advice, but for me I have made a good luck with it in the past.
 
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Bobinmi

Bobinmi

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Ford stock at these or lower prices is a BIG time long term buy. I have been buying it since last year and I buy more every few days as it has been going down. I’m no pro and I’m not giving anyone advice, but for me I have made a good luck with it in the past.
Bingo! we have a winner! AGREED!
 

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I have not been following the stock but one question in my mind is how they are planning to split off the electric car version of Ford into a seperate company. Any idea how that will affect owners of the current Ford stock?
 

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yes, always has been a laggard...but a PE of 3.9 is very low, even for Ford...and they are paying a nice dividend. GM has a PE of 6.3 and pays a 1 percent dividend and that is a low PE for GM....TSLA has a PE of 102 as of today, pays no dividend. Just doesn't seem right that ford which has the best dividend by far, decent earnings, is such a black sheep.
It's a changing, things are happening.
 

Impetus19

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It's a changing, things are happening.
Ehh... as an investor this doesn't impress me, I am actually not even sure what you are referring to... if they spin off their electric vehicle division maybe I am in, but generally speaking, there are better investment options out there especially right now. (I would probably prefer intel at these levels even if they are nanometer challenged)
What good is it if a company can't meet demand for their products? Eventually the other companies catch up. Not many barriers to producing a cheap truck.
Tesla couldn't meet demand for along time but they were/are so far ahead of competition they had a cushion and have reached a point now where they can meet it.

Ford can create demand but can't meet it, and I don't see that changing.

If Ford want's to draw in investors... they need to cancel their dividend.
Growth doesn't happen by using FCF to pay dividends. That money clearly needs to be invested into efficient means of production to meet demand and grow revenue.

Nobody on Wall street cares about dividends or eps. Ford PE is low because they have no means of increasing revenue, they can't make more cars.
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