Equities are busting through the ceiling this morning. Intel, Eaton, and ARM Holdings... all beating estimates. I have to admit, even AT&T beat estimates, but it is trading on the downside due to a slowdown in growth. It's just 5 a.m. over here in San Francisco, and who knows how far up pre-market trading will get. Gold, oil, dollar... all up. Auto-pilot mode? Perhaps.
I'm going to shift gears today, and hit up the auto industry. Yes; in the face of rising oil prices, I am betting on this industry to trend up. If you ended up investing in this company 1 year ago, you would of ended up flat on profits. If you sold this on the peak prior to the correction, congratulations. Last year accounted for Ford's best profit in a decade. However, last quarter the company didn't beat analysts. On top of that, Japan happened. Then to make it worse, a recall of the F-150 models was initiated.
Moving on, Ford 's stock is an attractive play. Electric cars only account for 1% of the previous earnings. Imagine the growth in upcoming months, or even years. Exports will not only increase international growth, but help the U.S. trading deficit. 2013 Taurus will spark demand for those wanting quality and efficiency. Oil seems to be flat as of late, albeit relatively short term. Risks involve an increase of structural costs and competitive margins.
Ford's earnings call will be on the morning of April 26. I expect a slingshot.
Another member on board, Swintsky! Glad you subscribed, no matter how you got here.
Another member on board, Swintsky! Glad you subscribed, no matter how you got here.
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