iBooyah: Ford (F) Way Backward!
One of the many problems facing the “American Big Three” (GM, Chrysler and Ford) is the union labor force. Union has put these companies at a disadvantage. Too often we hear unions threatening strike if they do not get their raise or if they must pay a few more dollars for their health insurance. These labor threats occur despite the company is losing money. It makes little sense to me as an investor. Interestingly, I cannot recall the last time I hear about labor issues at Toyota or Honda.
How can these companies compete when it is unable to fire people at will? Is Ford not in business to make a profit for shareholder? As a business, companies should be able to fire people when sales are slow. It only makes sense. No company can effectively compete in this environment. I realize Ford has a long history and have benefited from union workers, but times have changed. Buying out un-needed workers is the first step and I commend the company for taking this action. While it is a tough decision, it is also a necessary step toward gaining control of the situation. However, do not get too excited. Ford still need to build relevant products that consumer finds desirable. This is a challenge Ford has not be able to do in the past.
In my view, this stock should not be trading more than $6.50/share. Do not take the words of some talking heads on TV or some lame stock analyst as they do not have your best interest at heart. This company needs to prove that it can deliver before one should consider buying a share. The day you see a Ford car or truck on the road that you would consider buying, that would be the day you should consider buying Ford. Until then, it would be smart to wait and see. As individual investor, one should not be speculating on Ford. The guys on Wall Street can afford to speculate as it is not their money at risk. If the stock tanks they will be paid. Good Luck!
