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Politics : High Tolerance Plasticity -- Ignore unavailable to you. Want to Upgrade?

To: upanddown who wrote (18440)	1/10/2003 10:06:37 AM
From: kodiak_bull	Read Replies (1) \| Respond to of 23153

Ford just announced that its pension funds are underfunded by $14.5 billion worldwide (Bloomberg TV). [http://biz.yahoo.com/rb/030110/autos_ford_outlook_1.html] Let's see, $14 billion of liabilities on a company that's only worth, market cap, $18.8 billion. These numbers are beginning to get a little real. Of course a lot of that $14 billion of pension fund liabilities is PROBABLY priced into the stock, which shows a book value of $5, and cash per share of $8.42, and a current price of $10.10/share. Ford's balance sheet is enormous, but it's only showing 9.9 billion dollars of shareholders' equity. Ford lost 5.45 billion pistoles last year and now will have to take scoops of money from "potential" profits into its pension obligations for a long time, just as the consumer gets tapped out. Maybe they won't be able to pay a 4% dividend anymore. Kb