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Non-Tech : FORD (NYSE:F)
F 12.99-1.3%12:13 PM EST

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To: Michael Sinclair who wrote (434)11/23/1999 8:11:00 PM
From: Harry Sharp  Read Replies (1) of 1065
 
If I had to guess why the stock has done poorly it's rising interest rates, rising oil prices but most of all people seem to like GM better right now. Big investors see little reason to invest in two auto companies, they'll typically pick the one of the three they feel will do best. GM will spin off their Hughes Electronics division sooner or later and IMHO that will benefit GM shareholders much more than the Visteon spin-off will benefit Ford shareholders. In fact I'm going to be surprised if the Visteon spin-off benefits Ford shareholders at all. It's a shame to punish a company for doing as well as Ford is doing right now but many feel this is the best of times for Ford while GM has much more room for improvement.

Ford is the most conservative stock in my portfolio and I'm going to keep it there. No one can say Ford is overvalued and while it is sadly trailing tech stock performance it is a "value" stock. In the event of a strong market correction I think I'm going to be glad I have a portion of my portfolio in Ford instead of a current high flyer. With Ford stock at $50 Ford's dividend yield is four percent - that's hard to beat. Ford's vehicle line-up gets better and better while margins are improving. Longer term Ford should work out. I hope.
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