pelcmarek's picture
Short nr.7: Ford Motor Company (F)


Ford Motor Company F reported an $8.7 billion net loss. Ford continues to get about two thirds of its U.S. sales from trucks. Pretax automotive income in North America has not been positive since 2004.

In 2008, management said it will not meet its goal of returning to profitability by 2009.Ford's U.S. market share is 15% compared with 20% five years ago.

Ford burned $2.1 billion in cash in the second quarter and $8 billion in the first half of 2008.Ford lost $15.3 billion in the past two years.

From 2001 through 2007, Ford made $21 billion from their financial arm but still went on to lose a cumulative $18 billion!Without the profitability of that division, Ford is in free fall.

Ford has the worst position in terms of debt per share, revenue per share and revenue to debt.

My short nr.7 is Ford (F).Price is 5.05






18 months


Ford Motor (F) stock fell 36¢, or 9%, to 3.69, its lowest since 1984.

Ford had $26.6 billion in cash at the end of the second quarter. At its cash-burn rate, the company can stay flush for 18 months. Then it would hit its minimum of $10 billion to $12 billion needed to run the business.

Short nr.7


I'm closing my short position in Ford.Todays price is 1.36. It means 73.07% profit !