Wall Street Ups Bet Against Ford's Stock

FordThe short interest in Ford (F) rose 12% in the period which ended April 29, to almost 177 million share. That was after the No. 2 U.S. car maker reported a sharp rise in net income to $2.6 billion for the first quarter. Ford's best news of the early part of the year was already out. Ford said it would maintain its market share in America for the balance of the year and that domestic sales for the entire market may reach 13.5 cars and light vehicles. In other words, nothing but good news.

Why an increase in bets against a rise in Ford's stock? Among other things, the shares may have gotten expensive. It changed hands for $14.62 on April 18. It close yesterday at $15.15, That is a gain of almost 4% in a short period of time.

A Few Big Obstacles?

Several challenges could disrupt Ford's good fortunes. The first is the most obvious. Gas prices are nearly $4. People may be reluctant to take on the cost of a new car, even if it is a fuel-efficient one. Or, buyers may turn to the used car market to get a deal at a lower price.

Ford also may be challenged by competition. Toyota (TM) recently announced that its earnings in the last quarter fell more than 75% after sales in its home market were devastated by a recent earthquake. Its supply chains have been slowed and may well not pick up until later in the year. Toyota and its Japanese rivals may need to offer lower prices to get customers back into its showrooms.

Another huge challenge for Ford is the Chinese market. It is the world's largest nation by total annual car and light truck sales. GM (GM), VW and their local partners dominate that market now, and European and Japanese manufacturers have rushed to take advantage of a huge and growing opportunity.

Ford has certainly staged a huge turnaround after being the only U.S. car company to avoid Chapter 11. The next year could be its biggest test yet.

Increase your money and finance knowledge from home

What is Short Selling?

Make a profit when stocks prices fall.

View Course »

Understanding Stock Market Indexes

What does it mean when people say "the market is up 2%"?

View Course »

Add a Comment

*0 / 3000 Character Maximum


Filter by:

Major Fraud Alert

The entire Federal Banking System under FirstGov has been "Consumed" and "Levied" by way of a Maryland State Circuit/District Court Ruled “Appropriation and Garnishment” of all Future Earnings prior to and after 2004 against Bank Of America by way of the F.D.I.C. Regulations Prohibiting failing Banks from Merging with other failing Banks between the Dates of 08/04/08 and 10/09/09.

Bank of America violated the 21st Century Act: Final Amendments to Regulation CC Section: http://www.federalreserve.gov/boarddocs/press/bcreg/2004/20040726/attachment.pdf

seeking reimbursement of Credit, Loan, and Finance Balances as a "Bank Entity" and not a "Nonbank Consumer" as specified on Pages 85 and 86.

The person they sued through a LLC. Debt Collection Company and Law Firm was the "World Fortune Owner" who "Counterclaimed" and won.

Now all Contracts of any Corporations (Including Employment) under the "Controlling Interest" of any Investment Bank Worldwide are "Null and Void", and are also under the stipulated Rules and Regulations of an "Closely-held S Corporation rendering all Employed under Legal Actions against “Domination”, and also means that "No Corporation can hold Shares" officially making every Stock Exchange on the Planet a "Ponzi Scheme" by default.

Businesses owned by the States (Public Corporations) are being sold Stock Shares by Corporations also under the Federal Banking System in this Worldwide "Ponzi Scheme". The World Fortune Company Merrick Inc. Sweden is dissolving Millions and Billions of Dollars from "All Levels of Government"in the U.S. of Financing based upon Years of "negligent inaction" involving this case.

The Federal Government has already been forced to discontinue supplying the Financing States use to pay their debts, Persons in Government Offices may want to begin to take their jobs more seriously, these are different times from 10 Years ago and you will not be accepted civil servants here just because you say you are here to do the right thing.

May 28 2011 at 11:49 PM Report abuse rate up rate down Reply
Not Again

I just got a $829.99 iPad2 for $98.37 and my girlfriend snagged an awesome $1299 MacBook Air for only $137.93, its being delivered tomorrow. I would be a fool to keep paying high retail prices at places like Walmart or BestBuy, when I even sold a 37" HDTV to my boss for $600 that I only paid $78.24 for. I use two sites, both are good, SnagBids.com
and BidsGo.com

May 17 2011 at 10:04 AM Report abuse rate up rate down Reply

An alternativ­e recommenda­tion to replace The Federal Reserve is to go back to The Constituti­on of The United States where it is clearly stated that the Congress has the sole responsibi­lity to print and coin money and to determine the value of the money. The Treasury Dept. can easily handle the printing process.

This would forever eliminate the fraud of paying interest and incurring debt to a privately owned, for profit money printing monopoly, like The Federal Reserve. Declare the "National debt" as null and void due to the massive fraud and unconstitu­tionality of the Federal Reserve Act..

Abolish The Federal Reserve and it's evil servant, the IRS. This nation got along just fine with out an income tax or the IRS for nearly 130 years. That will free up about $750,000,0­00,000 to $1 trillion per year at current expenditur­es. Issue money on a formula that incorporat­es population and gross domestic product.

Avoid like the plague getting into gold or silver backed currency because the same oligarchic­al families and businesses who control our economy now through the Federal Reserve have control of the world's gold and silver markets.

Return manufactur­ing to this country by what ever means are required.

Prosecute those members of government who are found to have committed treason and/or violated their oaths of office. Investigat­e and prosecute those individual­s in and behind The Federal Reserve fraud who have defrauded the American citizens for 98 years

May 14 2011 at 1:09 PM Report abuse rate up rate down Reply

I bought Ford stock 2 years ago and although it has gone up quite a bit since then ,I have yet to see a dividend. I will contunue to hold onto my shares but would like to see a better return on my investment. i think its time to be rewarded for believing in them

May 13 2011 at 8:50 AM Report abuse +1 rate up rate down Reply

UAW workers are overpaid --- and they are supplying the union bosses with union dues to use for lobbying efforts that increase the PRICE OF THE CARS SOLD!! It is a vicious cycle...that in the end, simply causes the prices to increase.....and fewer sales...

May 12 2011 at 12:51 PM Report abuse -1 rate up rate down Reply

Some of you people have the wrong idea about unions sure you would like a car for 1000 dollars but yes we make a good rate (not as good as goverment workers and elected officials) And I will have to say that most of us earned our money.but we do not make decisions. When i was a union offical I went to company union meetings(in the early part of the 90's ) with management . I told them that we need small and gas efficient cars We need to step up service at the dealers. Service at dealers has improved but where are the cars with good gas milage. The problem with a lot of U.S. companies is the big bosses are only in power for a few years and they know it and part of the pay they get is bonuses for amt of profit. No incentive for them to worry about 10years down the road (I think the big reason for our lack of spirit ) could you see the stock holder if theceo would say hey we are not going to have a profit for 5 years because we are going to become bigger and better they would be out of a job in days.

May 11 2011 at 12:50 PM Report abuse rate up rate down Reply
1 reply to rini1946's comment

Ford did not take the bail out from the Obama government give-a-way out --- however, I find it interesting that Wall Street is not taking a pro active position with Ford. Yup politics has gotten so dirty and so vindictive that anything postitive in this country is panned -- We all should thank the almighty that ford is still alive and kicking -- especially since HOnda and toyota are for the most part destroyed. ford has the capability to pick up the slack and get those assembly lines cranked up again. Wall STreet you suck -- it's one thing when it's capitalism in it's true form, it's another thing totally when it's dysfunctional, destructive and toxic. Greed always implodes on itself taking and anhilating all that is positive and good.

May 11 2011 at 10:25 AM Report abuse +3 rate up rate down Reply

I'll believe FORD is on safe ground when they begin paying a Dividend to Shareholders! They are only sharing with employees and officers at the moment!!

May 11 2011 at 9:33 AM Report abuse rate up rate down Reply
1 reply to Kay's comment

Why would share with Wall Street those greedy basturds have enough cripes they steal, scheme and lie ==now they are panning the very people they want dividends from Screw em

May 11 2011 at 10:28 AM Report abuse rate up rate down Reply

The best way to follow the Ford Stock is through watching it on the live chart: http://www.forexpros.com/equities/ford-motor-co

May 11 2011 at 9:21 AM Report abuse rate up rate down Reply

Because they know that gov't motor's has obummer's backing, and they intend to make ford's life miserable.

May 11 2011 at 9:17 AM Report abuse +2 rate up rate down Reply