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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: James Clarke who wrote (11110)	9/4/2000 3:10:12 AM
From: Spekulatius	Respond to of 78740

I bought some stock in that little small cap company (F) already - I went in at 24$. I believe that from the 3 big car companies ,F is the best managed and it should bounce back 20% after the tire thing is over. The dividend yield is more like 4.5% however the stock was split 1:1748 a month ago (the value enhancement plan) The combined market cap of F, GM and DCX is only about 150B$ nowadays - less than a reasonable managed high tech company. So where is the downside?

To: James Clarke who wrote (11110)	9/4/2000 11:22:50 AM
From: David	Respond to of 78740

Re: Ford I was very lucky to have owned Ford over that period of time (the past five years) and the investment has performed extremely well. I was always concerned, though, about the inevitable cyclical slow down, which never occurred. Recently I struggled in deciding to take the $20.00 per share cash dividend completing the company's reorganization (supposedly taxed at capital gains rates). I thought it might be a good time to take some money off the table for a while although I am having some seller's remorse with todays valuations. Five years ago the stock was yielding around 8% and the pe was around 4.5x and, if I am not mistaken, the stock was trading at a discount to book. The balance sheet was dramatically transformed however. AFS (Associates Finance) was spun off and recently VC (Visteon -- the auto parts manufacturer) was also spun off. The company also shed $10 Billion off of its balance sheet through its recent $20.00/share dividend. Additionally, the company made large strides advancing its world marketing/distribution strategy through purchases of Volvo, Jaguar, Range Rover. Nassar has proven his ability to out the underlying value of Ford Motor Company that was dormant for quite a period of time. I was uncertain, given cyclical turns and the restructuring and acquisitions how the company's performance will hold up, so I opted for the $20 per share dividend. Maybe fear from the Firestone crisis will provide extreme value opportunities.

To: James Clarke who wrote (11110)	9/4/2000 11:22:37 PM
From: cfimx	Respond to of 78740

Careful, its real yield according to yahoo finance is only 4.5%. The special dividend must have skewed some numbers. That's still not bad though.

To: James Clarke who wrote (11110)	9/4/2000 11:32:31 PM
From: Q.	Read Replies (1) \| Respond to of 78740

I don't know about the timing to buy F, but I do know that I'm getting tired of Ford making my taxes complicated. After getting a spinoff of Visteon plus cash for fractional shares, and then a special dividend that is not taxed like a dividend, both of these in one year, gosh, I have no clue what the basis of my F stock is. Much less how to enter it in Quicken. Ford could try to be friendly to shareholders and give us a simple explanation of how to figure out our cost basis after all this brouhaha, but they don't. If you try to visit the F website for help in figuring it, you won't find any. Other companies have done much better, after special events like this, in explaining to shareholders how to calculate their cost basis. I suppose Ford is distributing all this stuff to shareholders in an effort to be nice to them. If you have a big chunk of F stock that's something to be happy about. OTOH, if only a tiny part of your portfolio is in F, then it only serves to make your life difficult. Bottom line: if you decide to buy F, then buy it in a big way so that the hassles are worth it.