HotRunrGuy Posted May 29, 2021 Share Posted May 29, 2021 9 hours ago, ice-capades said: Ford notice to Dealers... INFORMATION All-New White Space Vehicle Name Reveal Broadcast ACTION REQUESTED Have your team view the June 2 broadcast to understand the plan for revealing the name of an innovative, all-new ’22 model year Ford Motor Company vehicle. SUMMARY Something Unexpected Is Coming. Please Tune In For A Special Dealer Broadcast On June 2nd To Hear About An All-New White Space Vehicle Coming For Ford Motor Company! Check back here on June 2 to view the broadcast. Stay tuned for additional information regarding the subsequent product reveal later in June. HRG 2 Quote Link to comment Share on other sites More sharing options...
jpd80 Posted May 30, 2021 Share Posted May 30, 2021 9 hours ago, akirby said: How does that give Ford more equity? In this situation Equity is the value of stock. Quote Link to comment Share on other sites More sharing options...
jpd80 Posted May 30, 2021 Share Posted May 30, 2021 5 hours ago, rmc523 said: lol. Everyone knows about Maverick, but it's funny to see them pretend it's a big secret. Mercifully, that white space nonsense ends soon. Quote Link to comment Share on other sites More sharing options...
akirby Posted May 30, 2021 Share Posted May 30, 2021 2 hours ago, jpd80 said: In this situation Equity is the value of stock. Ford isn’t the share owner. Quote Link to comment Share on other sites More sharing options...
jpd80 Posted May 30, 2021 Share Posted May 30, 2021 (edited) 1 hour ago, akirby said: Ford isn’t the share owner. Well yes and no, The Ford family who control the company still hold their original unsplit B Stock, yes? Generally, people love to fling around market cap when gauging the value of a company, I know that’s not exactly true but I think that was his general point..... Edited May 30, 2021 by jpd80 1 Quote Link to comment Share on other sites More sharing options...
rmc523 Posted May 30, 2021 Share Posted May 30, 2021 3 hours ago, jpd80 said: Mercifully, that white space nonsense ends soon. Until they try to add another one. Quote Link to comment Share on other sites More sharing options...
jpd80 Posted May 30, 2021 Share Posted May 30, 2021 6 minutes ago, rmc523 said: Until they try to add another one. I’d forgotten about Fusion.... Quote Link to comment Share on other sites More sharing options...
Flying68 Posted May 30, 2021 Share Posted May 30, 2021 13 hours ago, akirby said: How does that give Ford more equity? It doesn't. But along his train of thought, and likely what he was trying to get at, is that higher stock price generally leads to lower borrowing costs. This is primarily do to the root business doing better and because a higher equity valuation gives room for issuance of additional shares that can be sold to pay back debt. So higher equity valuation reduces overall borrowing risk and thus reduces the cost of borrowing. 1 Quote Link to comment Share on other sites More sharing options...
rmc523 Posted May 30, 2021 Share Posted May 30, 2021 2 hours ago, jpd80 said: I’d forgotten about Fusion.... Unfortunately that doesn't seem headed to the US, though. Quote Link to comment Share on other sites More sharing options...
jpd80 Posted May 30, 2021 Share Posted May 30, 2021 55 minutes ago, rmc523 said: Unfortunately that doesn't seem headed to the US, though. There’s so many other good products coming...... Quote Link to comment Share on other sites More sharing options...
akirby Posted May 30, 2021 Share Posted May 30, 2021 9 hours ago, jpd80 said: Well yes and no, The Ford family who control the company still hold their original unsplit B Stock, yes? Generally, people love to fling around market cap when gauging the value of a company, I know that’s not exactly true but I think that was his general point..... A lot of people think share price has a direct effect on the company’s financials but it doesn’t unless they issue new shares. 1 Quote Link to comment Share on other sites More sharing options...
FordBuyer Posted May 30, 2021 Share Posted May 30, 2021 14 hours ago, jpd80 said: In this situation Equity is the value of stock. Also more money to use that comes with no interest charges that you can use to pay down debt or finance new or present product. Under Farley, more investors are buying Ford stock than selling. In fact, Ford is now one of the hottest stocks in the market. Market cap has almost doubled. Tesla has been using stockholder money for years to grow at exponential rate. 1 Quote Link to comment Share on other sites More sharing options...
FordBuyer Posted May 30, 2021 Share Posted May 30, 2021 10 hours ago, Flying68 said: It doesn't. But along his train of thought, and likely what he was trying to get at, is that higher stock price generally leads to lower borrowing costs. This is primarily do to the root business doing better and because a higher equity valuation gives room for issuance of additional shares that can be sold to pay back debt. So higher equity valuation reduces overall borrowing risk and thus reduces the cost of borrowing. The theme here seems to be that stock price doesn't matter. That couldn't be farther from the truth. It's a reflection of the health of a company. Ford has issued at least 3 times more shares than GM and recently GM stock price was 3 times greater. But under Hackett GM stock price got closer to 10 times greater. Either Ford issued more shares or Ford got much sicker. And many investors got out of Ford stock altogether. Not good only compounding Ford problems. Now under Farley Ford is a stock darling and Jim Cramer's top stock pit. That can only help. Not a Cramer fan, but he does have influence. And again, GM stock is only about 3 times greater. Farley knows how to use the media and present the company in a strong light. The Bronco, Mach E, and Lightning cult sure helps also. 1 Quote Link to comment Share on other sites More sharing options...
rperez817 Posted May 30, 2021 Share Posted May 30, 2021 1 hour ago, FordBuyer said: Ford is now one of the hottest stocks in the market. Market cap has almost doubled. Yes sir FordBuyer. Ford's announcements in the past 6 months to go all-in with BEV, which includes developing the dedicated BEV platforms mentioned in this thread, is a big reason why. Jim Hackett cracked the door open for Ford to enter the "new world" of electric vehicles, autonomous vehicles, and mobility services. Jim Farley is pushing that door further open. All that's left for Ford to thrive amid the revolution going on in the automotive industry is to finally close the door to the "old world" of selling ICE powered vehicles over the next 10-15 years. For now, the transition from "old world" to "new world" is progressing nicely. Barron's said 6 months ago Ford "has a lot of catching up to do, but if the new CEO does it right, the stock could double". Looks like Jim Farley is doing it right. Quote Link to comment Share on other sites More sharing options...
Trader 10 Posted May 30, 2021 Share Posted May 30, 2021 3 hours ago, FordBuyer said: Also more money to use that comes with no interest charges that you can use to pay down debt or finance new or present product. Under Farley, more investors are buying Ford stock than selling. In fact, Ford is now one of the hottest stocks in the market. Market cap has almost doubled. Tesla has been using stockholder money for years to grow at exponential rate. The stock market is a secondary market. Investors buying Ford stock are buying from other investors, not Ford. 4 Quote Link to comment Share on other sites More sharing options...
akirby Posted May 30, 2021 Share Posted May 30, 2021 3 hours ago, FordBuyer said: The theme here seems to be that stock price doesn't matter. That couldn't be farther from the truth. It's a reflection of the health of a company. 4 hours ago, FordBuyer said: Also more money to use that comes with no interest charges that you can use to pay down debt or finance new or present product. I don’t think you understand how stocks work. 2 Quote Link to comment Share on other sites More sharing options...
jpd80 Posted May 31, 2021 Share Posted May 31, 2021 It’s easier to sell new stock once the price is moving up. Quote Link to comment Share on other sites More sharing options...
Flying68 Posted May 31, 2021 Share Posted May 31, 2021 Stock price has no impact on the company's financials or balance sheet. The only thing it usually affects is borrowing rates due to lender covenants or bond ratings. Stock price is a reflection of both company health and investor sentiment for future profits. That is it. Quote Link to comment Share on other sites More sharing options...
jpd80 Posted May 31, 2021 Share Posted May 31, 2021 6 hours ago, Flying68 said: Stock price has no impact on the company's financials or balance sheet. The only thing it usually affects is borrowing rates due to lender covenants or bond ratings. Stock price is a reflection of both company health and investor sentiment for future profits. That is it. While that is true, a rising stock price can generate enough interest to enable the company to float more stock at the higher price and generate more cash or sell more credit notes. Quote Link to comment Share on other sites More sharing options...
akirby Posted May 31, 2021 Share Posted May 31, 2021 2 hours ago, jpd80 said: While that is true, a rising stock price can generate enough interest to enable the company to float more stock at the higher price and generate more cash or sell more credit notes. How often do companies like Ford sell new shares? I thought that was relatively rare. Quote Link to comment Share on other sites More sharing options...
akirby Posted May 31, 2021 Share Posted May 31, 2021 9 hours ago, Flying68 said: Stock price has no impact on the company's financials or balance sheet. The only thing it usually affects is borrowing rates due to lender covenants or bond ratings. Stock price is a reflection of both company health and investor sentiment for future profits. That is it. Long term investors care about the company’s health. Short term investors only care about the price today vs what they think it will be tomorrow or next month or next year. Others buy for the dividend only and some just buy things that are popular. Some make money when stocks fall. 1 Quote Link to comment Share on other sites More sharing options...
silvrsvt Posted May 31, 2021 Share Posted May 31, 2021 On 5/29/2021 at 2:38 PM, rmc523 said: lol. Everyone knows about Maverick, but it's funny to see them pretend it's a big secret. I'm willing to guess the general public that doesn't have a rabid interest in automotive things doesn't Quote Link to comment Share on other sites More sharing options...
SoonerLS Posted May 31, 2021 Share Posted May 31, 2021 27 minutes ago, akirby said: How often do companies like Ford sell new shares? I thought that was relatively rare. From what I could find, it looks like Ford hasn't issued any new stock since Henry was alive. Quote Link to comment Share on other sites More sharing options...
FordBuyer Posted May 31, 2021 Share Posted May 31, 2021 So let's say Ford needs a quick $2 billion for whatever reason and doesn't want to touch its war chest. So where does it go? Most places if not all require interest expense. Not issuing stock at the moment. Stock is at 12 month high and no dividend. As a Ford stockholder, I hope Ford doesn't dilute my stock anymore, but that option is there. It wasn't two years ago when Ford stock was single digit and paying high yield dividend. Now it is ideal option if needed if chip shortage doesn't improve. More options is good. Ford has hot new products that many want and an improving stock as investors see it too. Quote Link to comment Share on other sites More sharing options...
twintornados Posted May 31, 2021 Share Posted May 31, 2021 What everyone is missing is the "special" Ford stock that is owned by the Ford family that gives it control of the company and no one can come in and buy a huge chunk of the "regular" stock and force a leveraged buy-out or force the board to give them a seat. Quote Link to comment Share on other sites More sharing options...
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