Stock Trading Question

[PaulFiveOh]

So, as a hobby of mine, I buy&sell options on big name stocks....well, I've gotten pretty damn lucky the past few months and have quite a bit in my Fidelity account....so here is my question for all you guys doing this much longer than I have:

F (Ford Motor Co.) hit recored low share price on the 17th. Its been below $6 for a few days now. Now....my 19 year old brain tells me that despite all the Sell indicators on this symbol.....that if I can pick up as many shares of F as possible.....I suspect that by 09 it will be back up to start of 08 prices of around $9.50 then up and up based on alot of (well honestly nothing)......but I think that if Ford Motor Co. Stock prices goes any lower.....they are going to start counting they're assets for when they have to be sold.

In short - Should I ignore Sell indicators and buy any way? Or should I do nothing...

Thanks

[DeckerEnt]

As you already know, the way to make money on any stock is to buy low and sell high. It just depends on how long you want to wait. As far as ford goes, I say buy some now at the low price and when it starts to climb, say this spring or summer, sell some but keep some. Then if it really takes off, you can cash in even bigger.
My dad did this with com air way back when. He bought a lot of shares at a good price. The shares would climb and split, then climb and split. It did this 4 or 5 times. He would sell off some here and some there when he or the business needed money but he never touched the original investment. He had to take the cash when delta got it though. The tax bill was a shocker.
Keith

[Gearhead]

So, as a hobby of mine, I buy&sell options on big name stocks....well, I've gotten pretty damn lucky the past few months and have quite a bit in my Fidelity account....so here is my question for all you guys doing this much longer than I have:

F (Ford Motor Co.) hit recored low share price on the 17th. Its been below $6 for a few days now. Now....my 19 year old brain tells me that despite all the Sell indicators on this symbol.....that if I can pick up as many shares of F as possible.....I suspect that by 09 it will be back up to start of 08 prices of around $9.50 then up and up based on alot of (well honestly nothing)......but I think that if Ford Motor Co. Stock prices goes any lower.....they are going to start counting they're assets for when they have to be sold.

In short - Should I ignore Sell indicators and buy any way? Or should I do nothing...

Thanks

Paul,

I work for a brokerage firm and own a substantial amount of Ford shares.

Just a few things to think about - Ford has mortgaged practically every piece of property, buildings, equipment, and assets they own last year. Their Pension/Retirement funds are underfunded by billions and their legacy costs are huge. Ford bonds have been cut to "junk" status.

The current stock price is partially a reflection of their enormous debt load. In my opinion, I don't think their stock price will rise sharply anytime in the next few years. Even with the "Way Forward" plan, restructuring, and plant closures.

However, it could rebound somewhat from Thursday's low, on Friday alone it was up 2.78%.

It seems like you know what you are doing, but just be careful with your $$$. I've seen so many people lose their asses over the years it's scary.

Please don't take any of this as a recommendation to either buy or sell.

Scott

[pegasus]

I would buy a few and just hang on next time they change the mustang or the f150 its going to go way back up (this coming from the mind of a 20 year old hay seed)

[Katmandu]

In short - Should I ignore Sell indicators and buy any way? Or should I do nothing...

ThanksPersonally, I would avoid it. From my understand, the long term out look for Ford (and several other car manufacturers) is NOT GOOD!

That said, I just happen to watch a segment of CNBC's Mad Money with Jim Cramer. You know the bald dude that runs around yelling and screaming about $$!! :eek: :lol:

Anyways, he had Manager of the mutual fund FBR Focus Fund on. FBR specializes in buying junk stocks when they are down.

Here's a Summary from that show-->> http://www.cnbc.com/id/22728382

[PaulFiveOh]

Paul,

I work for a brokerage firm and own a substantial amount of Ford shares.

Just a few things to think about - Ford has mortgaged practically every piece of property, buildings, equipment, and assets they own last year. Their Pension/Retirement funds are underfunded by billions and their legacy costs are huge. Ford bonds have been cut to "junk" status.

The current stock price is partially a reflection of their enormous debt load. In my opinion, I don't think their stock price will rise sharply anytime in the next few years. Even with the "Way Forward" plan, restructuring, and plant closures.

However, it could rebound somewhat from Thursday's low, on Friday alone it was up 2.78%.

It seems like you know what you are doing, but just be careful with your $$$. I've seen so many people lose their asses over the years it's scary.

Please don't take any of this as a recommendation to either buy or sell.

Scott

You know, thats new information that I didn't know. I knew that they were starting to liquefy (sp) but I didnt realize to that extent.
I think based on your info, I am going to decide to leave this one alone.

Thanks man.

Maybe sometime I can buy you lunch, and use that time to pick your brain for tips. :)
-P

[PaulFiveOh]

Personally, I would avoid it. From my understand, the long term out look for Ford (and several other car manufacturers) is NOT GOOD!

That said, I just happen to watch a segment of CNBC's Mad Money with Jim Cramer. You know the bald dude that runs around yelling and screaming about $$!! :eek: :lol:

Anyways, he had Manager of the mutual fund FBR Focus Fund on. FBR specializes in buying junk stocks when they are down.

Here's a Summary from that show-->> http://www.cnbc.com/id/22728382

Yea I happend to have that DVR'ed and watched it right after I read your post. He is a nut isnt he haha. Thanks again for your advice.

[Katmandu]

Sure going to be interesting watch the Opening Bell in (14) minutes! :eek:

[Katmandu]

And their off !!!!!!!!

[Katmandu]

DOW down 273 points in the 1st 2 minutes! :eek:

Now down 445 points 3 minutes later.

[cobraman302]

Its going to be nasty with the way the futures are predicting. And not to mention the world marjets, they were down an average of 5%+ yesterday and last night, while futures predict a near 4% drop in the market today. Who knows though, its my time to buy.

[Katmandu]

Personally, I would avoid it. From my understand, the long term out look for Ford (and several other car manufacturers) is NOT GOOD!Check this out...

http://www.msnbc.msn.com/id/22819848/

Here's an excerpt of the article.


Automaker lost $2.8 billion last year, sees grim sales outlook for 2008


DETROIT - Ford Motor Co. will offer buyout and early retirement packages to 54,000 U.S. hourly workers in an effort to cut costs and replace those leaving with lower-paid workers. Thursday’s announcement came as Ford said it narrowed its losses in 2007 but warned that the outlook for U.S. sales in 2008 remains grim.......

http://www.msnbc.msn.com/id/22819848/