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Ahead of the Bell: Ford Downgraded


suv_guy_19

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Investors with an appetite for risk may find opportunities in various Ford bonds, he said. "Even though the equity would likely offer higher returns in a 2009 macro recovery scenario, the bond/loan side of the balance sheet has become more attractive relative to the stock," Michaeli said.

 

He also suggested buying shares of General Motors Corp. while selling Ford stock. "Our favorable view of GM versus Ford is not a short-term trading call but rather an assessment of the long-term risk-reward proposition in both stories," the analyst wrote.

 

CNN

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Speaking of down-grades, check out this article:

 

http://www.nytimes.com/2008/03/03/business...l?th&emc=th

 

States and Cities Start Rebelling on Bond Ratings

 

Does Wall Street underrate Main Street?

 

"A growing number of states and cities say yes. If they are right, billions of taxpayers’ dollars — money that could be used to build schools, pave roads and repair bridges — are being siphoned off in the financial markets, where the recent tumult has driven up borrowing costs for many communities.

 

A complex system of credit ratings and insurance policies that Wall Street uses to set prices for municipal bonds makes borrowing needlessly expensive for many localities, some officials say. States and cities have begun to fight back, saying they can no longer afford the status quo given the slackening economy and recent market turmoil."

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Yea, it was a great kick in the nads for a Monday morning :reading:

 

Stock is just barely hanging in there... Cant wait for the release of sales figures.

What do you mean barely hanging on I check my E-Trade account and Ford is trading where they have been for the last 2 months, the real slump was in January? I hope it keeps declining! ;)

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What do you mean barely hanging on I check my E-Trade account and Ford is trading where they have been for the last 2 months, the real slump was in January? I hope it keeps declining! ;)

 

You short selling Ford or something? Your wink makes me wonder. If so, sucks for whomever you are borrowing from.

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You short selling Ford or something? Your wink makes me wonder. If so, sucks for whomever you are borrowing from.

Uh no I dont short the stock, and I'm not in debt to buy it. I'm watching a once struggling company coming out swinging with new and excelent products. as long as the price is down I buy shares cheap and when we do get the recognition for our efforts and good designs the pay of will be that much better for me! I stared buying at $8.00 and $6.00 is an average down for me! The lower it goes and the longer it stays the better my return will be down the road! :shades:

Edited by Furious1Auto
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