TGIF! I can’t complain, though, because we had a very solid week. We continued this week’s success yesterday with an Overnight Trade in Verigy Ltd. (VRGY). The company killed earnings yesterday evening, with an EPS of 0.22 vs. the expected 0.16. They beat revenue estimates and guided above estimates. With all that, I was expecting a nice 4-5% open. We didn’t get that and got out at 8.80. We got in at 8.60, so it was a solid 2.5% gain again for an Overnight Trade. We made some money, so I can’t complain. If the market had been good today, though, we would’ve made more.
So, it is another awful day in the markets. I am going to turn my attention to a new Long Term Investment…
Long Term Investment: Ford Inc. (F)
Thesis
All of us know the Ford story. The company that started the American auto industry and is an American legend. The same company that with the helps of GM and Chrysler seemingly destroyed the American auto industry is now…back! The company has seen an amazing turnaround since lows of 2008, and it has positioned itself with a number of moves to become an auto powerhouse once again. So, how they have attracted my attention: better cars, better reviews, downsizing/simplification, lower costs, and the downfall of Toyota.
The most important part of any automobile company is their cars. Do people want them? If they do, that is step one. For years, Ford automobiles were taking a backseat to the likes of Toyota, Nissan, and European cars. The company attempted to battle this trend by buying up Mazda, Jaguar, Volvo, and Land Rover. Yet, they continued to lack a focus on their own line. So, how did Ford turn this one around – The One Ford Vision. The company has a complete refocus on its own line and has stripped itself down.
The company’s first mission was to build better cars. The company is set to launch the Ford Fiesta. A microcosm of the redefinition the company is seeking. The car has good reviews, is green, and focuses on its customer that faces higher gas prices. The Fiesta is a car that people will actually want. It is ranked #1 out of 31 new affordable cars on USNews newest 2011 rankings.
The Fiesta is not the only car getting strong ratings. J.D. Power’s latest rankings show a number of the Ford cars making great strides.…
