Ford & General Motors: Ready to Go Full Bull? - Barron's (blog)
FORD is in the early stages of an earnings turnaround – just as it is on the verge of completing a huge 12-year price base. Full-year net is expected to surge to the $1. 70/share area from last year’s $1. 16/share. Fueling the growth is strong demand for their F-150 trucks, which start @$26,000. (A 40% decline in gasoline prices versus last August is a strong positive – helping to boost demand for their luxury vehicles. ) But it is their F-Series line of pickups which is the best-selling luxury vehicle in the US. And in the September quarter Ford will roll out the F-150 Limited, a posh truck that will cost approximately $60,000. Technically F is in the latter... Long-term, once F could hurdle 19, then it would generate upside projections to 35+. GENERAL MOTORS sports a potentially large base, but it is lagging Ford. The CEO of ConocoPhillips ( COP ) purchased 28,300 shares @35. 30 ($900,000), and the CEO of Novartis ( NVS ) bought 32,000 shares @31. 80 ($1,000,000). As with Ford, General Motors is seeing strong sales in their truck line. Full-year net is expected to climb to the $4. 45-4. 50/share area from 2014’s $3. 05. Additional growth to the $5. 10/share area is expected in 2016. Technically, General Motors sports a 5-year base following its IPO. Unlike Ford, General Motors remains well below its down-trending moving averages, and has not confirmed a bottom versus the SPX. Source: blogs.barrons.com
