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View Full Version : is F a buy?



abinianesy
02-25-2016,
based on my charting NO. No signs of growing at this time

Adriannep
02-28-2016,
The short answer is... don't buy. Why?

1. CEO: A new CEO coming in is a news story. It does not, however, change the company's fundamentals or technicals, and thus does not affect my decision to buy or not buy.

2. The Dip: If you were going to buy and hold long-term, you should have bought while it was under $15.50 per share. Would be silly to buy now while it's above all it's moving averages (50-day, 100-day, and 200-day).

Alfredbum
02-29-2016,
My opinion...
No body knows what it's going to do...it doesn't matter. What matters is what strategy you can use in it. With volatility as low as it is there isn't a lot of meat to carve off the bone. But if you want to buy it then buy it....buy it and reduce your cost basis by selling the next out of the money calls against every 100 shares you buy...and repeat after every expiration. That should get you 1-3% return per month over time. It also pays around .12 dividend every quarter...thats another 3% per year. For a total of 12-15% per year return so long as you don't get hit by a bus. Of course these numbers all change if it actually goes up.
Reducing cost basis on entry and over time is a mathematical edge that requires no chart analysis or guesswork. There are a lot of underlyings that will yield far better results but just thought I would point out what one could do with your pick.

And if you think it's overpriced...then short it.

Really I guess it comes down to how long you want to be married that one.

Personally I would wait till it was beat down on a bad earnings or some other sell off....then I would jump in. Or the opposite to short it.

akvukinaajqo
02-29-2016,
From a fundamental standpoint, Ford looks cheap, in my opinion, and pays a decent dividend.

From the price action though, no one is really in control. The current wedge pattern needs to break one way or the other in time to get a sense of direction. I would use the up trend line as risk area if already long the stock.

afoqafozurer
02-29-2016,
It also pays around .12 dividend every quarter...thats another 3% per year. For a total of 12-15% per year return so long as you don't get hit by a bus. Of course these numbers all change if it actually goes up.