Why It's Time To Own Ford

One of the best success stories of the 2008 financial meltdown is Ford (F). This company has everything going for it, which begs the question: Why don't you own the stock?

Here you have a company-like many companies back in 2008 that had a meltdown as auto sales dried up very quickly. The company was losing over $75 million a day and I believe the stock dropped close to a buck in value. But last year, the company made a $20 billion profit on sales of over $100 billion. In 2011 $6200 in profit sharing was paid to each of its eligible employees and today the stock is trading at $11.95. Now that is quite a success story.

It has done well this year also. Recently, Ford raised its 2012 salesforecast. Its previous sales forecast was between 13.5 and 14.5 million in sales but now it is looking at close to 15 million. It is the North American operations that are carrying the company. Just in the U.S., first quarter sales were the best the company has had in the last four years. Plus, March was the best since 2007 with the Ford Fusion recording its best month ever and the F-Series showing the strongest March sales in five years. Canada has shown surprisingly similar success this year. January and February set a stronger-than-expected pace for the year. So now Ford has increased forecasts for yearly car sales. For the year the company is projecting sales to be 1.67 million, which are 40,000 higher than was projected.

Ford is going in a good direction financially and sales will just get stronger as the economy continues to grow. But something else I like about Ford is the continuing innovations and forward thinking management. One example of that would be with its Lincoln models. Lincoln is a luxury line where its average-aged buyer is 65. Since the early 90's, sales have shrunk by an embarrassing 60%. Ford is looking for a revival in sales with the MKZ sedan arriving later this year, featuring a retractable glass roof.

The two-foot by two- and-a-half foot void that's created is the biggest opening of any glass roof in the car business, and is part of a trend of moon roofs being replaced by so-called panoramic roofs. Ford figures a glass ceiling will finally help Lincoln break through. It will compete against such models as Infiniti G35, Lexus ES, and Cadillac CTS.

Not only is Ford looking to increase sales but Lincoln is also attempting to attract younger, wealthier buyers with seven new models by 2015; retractable glass roofs will become the brand's "signature design element".

Not only is Ford a success story, but the price of the stock is reasonable and sales continue to climb. We have here a successful and innovative company. The MKZ with a retractable roof is but one of the innovations Ford is bringing to the consumer this year. There is no reason you shouldn't own Ford stock.
By John Mylant

Disclosure: I am long F.