"SoCalMike" > wrote
> Elle wrote:
> > Elle
> > Hoping to buy some Honda stock in the next year or so.
> > Doggone Toyota stock has just about gone through the
roof
> > but still may be a good investment, if GM goes under.
>
> if youre looking to invest to actually MAKE some money, i
think ford is
> undervalued.

If you mean check it's P/E (particularly the expected, next
year's P/E) and make sure it's low, sure, that's one
so-called stock fundamental to check. Ford's P/E is low at
the moment. But, as you may be aware, this is one of dozens
of company fundamentals that an astute investor should
check. I often go next to the earnings history. In fact,
Ford's annual earnings were in negative territory in the
last five years, and are otherwise erratic. If you're
interested, see the chart in the lower right of
http://quicktake.morningstar.com/Sto...t.asp?Country=
USA&Symbol=F&stocktab=snapshot&pgid=qtqnnavsnapsho t for the
earnings trend in the last five years. Type in HMC for Honda
or TM for Toyota, and compare their earnings trends. Also,
compare to a huge conglomerate like GE or the soda pop
company Coca-cola KO.

Then too simple realities like Ford bonds are now rated at
the junk level make its stock an easy rejection. Not to be
obnoxiously pedantic, but for the interested student, this
means professional business analysts have gone over a
company's fundamentals (prospects for making profit!) with a
fine tooth comb and ruled the company in deep doo-doo, at
significantly greater risk of going bankrupt compared to,
say, a company like Honda these days.

> yes- theyre in the same boat as GM, but theyre smaller and
easier to
> turn around.

Both are too risky for my blood at this time. That took some
hard experience in investing to realize--I did own some Ford
stock a few years ago! Coulda timed it and come out ahead,
but you know how that goes. Likewise, one could buy some
Ford stock today, like you suggest, and try to time it. But
it really could go under. It's even more likely today than a
few years ago. It's for gamblers, or people that want to put
a very small portion of their portfolio in risky stocks, in
the hope it will go up and provide a little gain. But they
can also sustain the loss of the company going under, and
the stock becoming worthless.

I also had some GMAC bonds (a subsidiary of GM) a few years
ago. Pre-junk rating. They paid a nice interest rate,
matured and all was swell. But today any GMAC bond available
is rated junk. The yield is great, but they're high risk.

Of course, I know reputable people who say there is a fair
chance the government would bail out either GM or Ford and
not let them go under. Point being to spare the drag on the
economy all these folks out of work etc. would be, I
suppose. But then that may be seen to unfairly stifle
companies producing a good product, like Honda and Toyota.

So we'll see. For me, I want stock in products I know people
like and that are quality. Ford and GM once were. No more.
Onto Honda and Toyota.

Back to the fun, substantive stuff that makes us all go
"Whish, vroom, putt-putt-putt-putt... "

Elle
(Gonna lay off poor Elliott, too.)