• Nov 18, 2009
About a year ago, when Ford's stock dropped to just above $1 per share, we had a total Ralph Kramden-style get rich quick epiphany. Take all our money and buy Ford stock. Why? Having driven Ford's new, excellent products (like, say, the 2010 Ford Fusion), we knew that barring some weird disaster, that its stock could only, would only rise. Talk about easy money – we'd just sit back and get rich(ish). Trouble was A) we didn't have very much money B) we... forgot to buy any Ford stock.
Now, billionaire with a B investor and philanthropist George Soros has lots of money. Tons, quite literally. So much, in fact, that his holding group bought 7.3 million shares of Ford stock yesterday. All in, those shares are valued at about $53 million. Because of Mr. Soros' confidence in Ford, the price of the company's stock shot up briefly over $9.00, before ending the day valued at $8.98 a share. All in all, it's up 3.1% since Soros said "go." Imagine if we would have sunk $1,000 or so into Ford back when the share price was $1.26 last November. Nearly $8,000 smackeroos of cold, hard, profit! Maybe next recession.

[Sources: Reuters; Auto News – sub req | Image: Paul J. Richards/AFP/Getty]


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  • 49 Comments
      • 5 Years Ago
      I'm still kicking myself for not buying Apple at $17/share. I'm sure a lot of us do that. Shizz happens and you move on. There were be other bottom-feeding opportunities.
        • 5 Years Ago
        Yeap. I told everyone to buy Ford and Apple last November. No one did. Now they (and I) feel stupid. I couldn't really afford it then, but it would have more than paid for itself in barely a year. Ugh.
      • 5 Years Ago
      1,000 shares at $1.67 last October and still buying (up to 3,000 shares now). I think the stock will be at $12 by next Summer. My next car is a Porsche. Thank you Ford.
        • 5 Years Ago
        I appreciate the advice but I think you need to check your facts; Ford just posted a billion dollar profit for the quarter: http://news.yahoo.com/s/ap/20091102/ap_on_bi_ge/us_earns_ford

        As for my investing strategy; I don't need the cash and I'm in it for at least 5-10 years. This stock purchase will most likely be going towards my son's college tuition. Soros is garbage but he has only caused $1-$2 in bump, the res is due to product and a solid business plan (with a sprinkle of disgruntled Americans who won't be buying GM or Chrysler products in the near future). But again I definitely do appreciate the info.
        • 5 Years Ago
        Be careful. it really isn't smart to invest in a company that still as of yet not turned a profit.

        Ford still has billions in unfunded liabilities, union contracts to negotiate, and a huge debt load to pay back because of interest on the mortgaging of everything including the Ford logo. Ford's real earnings for the fiscal year are still -$15 billion. Yes the company still lost $15 billion even though the last quarter saw a $100 million gain, based on accounting writeoffs and a government incentive program.

        Ford needs yearly car sales to return around the level of 13-14 million a year to return to profitability. Their execs have even said so. Without a growth engine to spur new car sales I do not see that happening.

        Still if you bought Ford at the dollar level you made a good short term investment. Sell the stock now and pocket your gains. The stock may go up to $12, it may drop back down to $6. Each time Ford has risen to this level over the past few months the stock has dropped back down to $6 and change. The reason for this is that the companies earnings do not justify the price level of the stock. A lot of people made the mistake of counting paper profits as money in the bank, spent the money, and then saw the supposed profit disappear in the blink of an eye.

        Soros is not a buy and hold guy. He only makes moves for short term gains, many times shorting the market. $53 million is a pocket change bet for the guy. If he invested $250 million then it would be news.

        Based on forward earnings estimates Ford is valued at a P/E of 15 at $8.60. For a well established corporation a P/E valuation of 15 is on the high end. To justify a rise to the $12 level Ford needs to bring in quarterly net revenue of $400-500 million. The problem with this is that I base this analysis using real economics instead of the freakonomics the market currently uses. Where a stock can have a P/E of 80 and still be a buy.
      • 5 Years Ago
      So some Democrat, Socialist freak buys stock of a UAW company...big surprise.
        • 5 Years Ago
        And BoxerFanatic knows way more than 99.9% of the blind cheerleaders on this site.
      • 5 Years Ago
      yay for Ford!!
      • 5 Years Ago
      I bought at $1.82 and sold at just over $6. Very happy with my short term gain.
      • 5 Years Ago
      RUN, do not walk, away from anything George Soros is involved in.

      He is actively betting against the US dollar, and the US economy, just as he has so many times before in other countries. He gets filthy rich by destroying the value of currencies, while he bets against them on speculation. He is doing it now against the US Dollar, and helping pump buying power out of american households.

      He gets rich by sapping the value of your dollars away. And he does it with the complicity of the current administration, who he paid millions of dollars through various vehicles to get elected.

      This is a very, very, very, very, very bad man.

      If he is into something, you should get OUT of it. There is something going on there.
        • 5 Years Ago
        Do what you want...

        But I don't trust it.

        Why all of the sudden now is this guy investing enough in Ford to make news, and to make the price jump 3% at the mere mention?

        Yet he is in bed with the current administration that co-owns the competition, along with the unions that also negotiate with Ford.

        Maybe he is just trying to make a buck like any other speculator, but he didn't become a Billionaire by just following the common knowledge. He is a manipulator, not just a participant.

        Cheating is not the free market. Betting against currencies while destabilizing the economies and banking systems of various countries is not being a participant in a free market, it is exploitation.

        Didn't the british ban this guy after he nearly took down their banking system in 1992?

        He heavily shorted the pound sterling then... and he seems to be doing the same to the US dollar now, and he is playing the politics to work in his favor. That is cheating, and manipulation, not entrepreneurship, commerce, or above-board market behavior.
        • 5 Years Ago
        BoxerFanatic

        "He gets rich by sapping the value of your dollars away. And he does it with the complicity of the current administration, who he paid millions of dollars through various vehicles to get elected."

        As usual...

        -Zero fact, zero proof to your absurd accusations
        -Lots of unsubstantiated fear-mongering
        -A little conspiracy theory..."complicity of the administration.."

        You're ready for Fox's Spotlight, you'd fit right in.

        Now for your record:

        -Betting on the increase/decrease of any currency value is a widespread trade, which has no effect on the actual value of the currency.

        -Few other billionnaires spend as much money on charity than Soros, who puts most of his money to help former Soviet nations to get on their feet.
        • 5 Years Ago
        So somehow it's wrong [for us] that the idiots in Wall Street don't ever learn from this?

        It is the free market, there is no remedy for being stupid, hence the saying 'a fool and his money are soon parted' and the soon to be saying 'a fool and his freedoms are soon parted'.
        • 5 Years Ago
        Yeah, despite what this man may or may not have done in the past, I'm finding it hard to find something negative in him investing millions of dollars into an American car company.
        • 5 Years Ago
        What you are saying is completely true. All you nay-say-ers' do a little research.

        Ford was the only remaining American brand still standing independently of the federal government's (and those inside the Beltway who call and fund the actual shots) grasp. With a quantity of that many shares, what influence over the board will Soros and Co. have?

        So long gold ol' Ford. Damn it.
        • 5 Years Ago
        What the article fails to mention is that the stock rose about 6% this week before he bought in. It also fails to mention he invested in AT&T, WalMart, Home Depot, and Lowes at the same time and with varying amounts (most in the 10s of millions or better, I think like $46M in AT&T).

        As mentioned, even with that much money, it's a drop in the bucket for Ford and the family still has all the control with the controlling stake stocks they own so he has no say in anything that the company does.

        Nothing to really see here.
        • 5 Years Ago
        Pradden - 7.3M shares of F means this guys owns 0.2% of Ford.

        I'll let you figure out what kind of influence he will have on the board with less than 1%. If you're not sure, take a moment to find out how much the Ford family owns.
        • 5 Years Ago
        Lmao @ FSM!

        Classic. Put the teabagger in his place ;)
        • 5 Years Ago
        I studied quite a bit about his involvement in betting against the Sterling, but it's ABSURD to blame him for it, it were the irresponsible actions of central bankers at BOE which lead to him thinking that England would not be capable of protecting its currency.

        Same thing during the Asian crisis in 1997, it was the peg against the dollar which caused investors to doubt ability to protect it. Trust me, money flows I know INSIDE OUT and pointing finger at Soros is like blaming thermometer for the high fever.
        • 5 Years Ago
        by the way correct me if I'm wrong but I do believe he does all of this evil stuff by simply taking part in the free market. That is he buys and sells currencies, bonds, and stocks. Why do all of his naysayers hate his freedom and the free market?
      • 5 Years Ago
      The only thing he has confidence in is his own bottom line, mark my words.
        • 5 Years Ago
        That, insider trading, and trying to bring down currencies. He's not a venture capitalist, he's a *vulture* capitalist.
        • 5 Years Ago
        This guys investment made no difference in the stock! Trust me! I've been watching it like a hawk ever since I bet the farm on it at 1.85 a share!

        This stock should be at about $15 by the summer! Then when they start posting 5 billion dollar profits, it should go up up and away!

        ....note, I'm not advising anyone buy any stock.. I'm just sharing my experience and my guesstimate! GE is a good one too if anyone is wondering...
        NYSE: F
        NYSE: GE

        Oh and SIRI is worth researching! F and GE are better buys though! IMO
      • 5 Years Ago
      He just wants to be able to pressure Ford into bad decisions so the government has to buy them too. This Socialist is so in bed with this administration and he hates that they don't own all the car companies. I'm just saying follow the money. You'll be quite surprised.
      • 5 Years Ago
      While I would love to see Ford stock soar, anything that crotchety crook Soros puts his slimy hands on gets tarnished.

      He's the man who broke the Bank of England, is a wanted Felon in France, made billions off of the misfortune of others, and has is hands in the pockets practically EVERY American politician.

      His worst crime against society is using his billions in influence peddling vices in our society. It is the same underhanded deception that unions use to pretend to support employees so they can steal their dues, pensions, and extort their employers.


      http://www.sorosmonitor.com/absolutenm/templates/news.aspx?articleid=29&zoneid=1
      • 5 Years Ago
      The founder of move on . org. Everything negative about him that has already been said is true. This man is scum!
        • 5 Years Ago
        Atlas: well put.

        These people don't realize that the people they bow down to sell out every virtue they pretend to praise. Fox News doesn't support a free press. Cheney doesn't support free Americans. And Karl Rove screws over the average constituent with every vote they give, fanning the flames of a religion he doesn't even believe in.
        • 5 Years Ago
        Atlas:
        "Stolen democracy (Al Gore won by 700,000 votes, you feces like you bent over smiling)."

        Really? Well lets see. You know they did not count all the votes in the 2000 election don't you?

        No, I'm not talking about the votes in Florida where I live. They counted the votes in Florida TWICE, as required by law, but that wasn't good enough for Gore and his cronies so they they tried to recount in just the counties where he would expect to win in order to "find" (make up) votes for himself. The Supreme Court put a stop to that by a vote of 7 to 2. I know, you have all heard that it was 5 to 4. The main stream media (including Fox) reported it wrong. The first vote was about the recount in selected counties. The vote was 7 to 2 to stop it because it violated the Constitution. 7 to 2. That means a liberal or two agreed with the conservatives and moderates that what Gore was doing was wrong. The second vote was whether to allow a manual recount of the whole state, or some other remedy. That vote was 5 to 4, because time had run out. The vote had to be certified and the electors chosen by a certain date as prescribed in the Constitution, and I guess the document wasn't "living" enough to arbitrarily change that date.

        But what about the popular vote? Well two things:
        1.) Remember I said not all the votes were counted? They were in Florida, including absentee ballots (although the democrats tried their best not to allow counting of those from overseas military personel). The votes were not all counted in other states. I'm talking about absentee ballots. When a state is won by a large enough margin they don't count the absentee ballots. Why? Because it won't change the outcome (the electoral votes will still go to the winning candidate) and it costs a lot of money to count them. So they are tossed away. When the race is close, then they come into play. Now let's look at California. They had over a million absentee ballots. NONE of them were counted. Why? Because CA went overwhelmingly for Gore. Why waste the taxpayers money? Most absentee ballots are from military personel. They would vote overwhelmingly for Bush. What if the CA absentee ballots were 70/30% for Bush? Now Gore's popular vote would only be 300,000 more than Bush. And that's just one state. Now do the math for all 50 states. NO ONE really knows what the final popular vote total was. Maybe Gore had more votes - maybe not. No one EVER does in any presidential election. And it's NOT IMPORTANT. Why? Because:

        2.) Our Constitution does not require a popular vote election to select the president of the US. It reuires a majority vote of the Electoral College. I won't go into the reasons why the founding fathers set this system up. I'll leave to you who wish to understand it to look it up for yourselves. If Atlas knew the Constitution he would not be griping about the popular vote, because it is irrelavant. Most of the time the popular vote reflects what happens in the Electoral College. Once before 2000 the same thing happened, a president was elected who did not have a majority popular vote, so 2000 wasn't even unprecedented. Bush won the election because he won the state of Florida and therefore the most electoral votes. Sorry Atlas, but democracy wasn't stolen (maybe you were thinking about Al Franken in Minnesota). The laws of the state of FL and the Constitution was followed, despite the efforts of few to derail them.

        I'm sorry to be so long and off topic but if we don't know our own Constitution and how it's supposed to work then we in danger of having our freedoms taken away and being manipulated into believing something that is not true.
        • 5 Years Ago
        Atlas:
        "Stolen democracy (Al Gore won by 700,000 votes, you feces like you bent over smiling)."

        Nice to resort to name calling. But you're wrong. We are not "feces" and Gore did not win by 700,000 votes. NO ONE really knows what the final popular vote total was. Maybe Gore had more votes - maybe not. No one EVER does in any presidential election. And it's NOT IMPORTANT. Do you know why?
        • 5 Years Ago

        Atlas - What a bitter, sad human being.
        • 5 Years Ago
        John Cressy 8:08PM (11/18/2009)

        "The founder of move on . org. Everything negative about him that has already been said is true. This man is scum!"

        Moveon.org has helped America rid itself of a pest called GW. Bush and the neo-nazi, regressionist party that has:

        1) Stolen democracy (Al Gore won by 700,000 votes, you feces like you bent over smiling).

        2) Forced the nation into an oil war on 900 pages of made-up 'evidence' (costing a trillion and over 4000 lives, conflict ongoing).

        3) Helped his buddies in oil, weapons and military contracting industries pocket billions.

        ..

        It's people like you, the retarded naysayers, the so-called freedom lover, family-value whining @ holes who are the skum of this country.
        • 5 Years Ago
        MTU 5.0


        Hahaha! Personal attacks - but for some reasons that doesn't surprise coming from you MTU.

        No, I'm trying to shed some clarity on some of the confused minds around here, the American media on both sides of the aisle has taken its toll on the population.
        • 5 Years Ago
        Good points Atlas. It's sad that so many people voted you down. It makes me wonder if people on this board bothered to pick up and read a newspaper between 2000 and 2008. Apparently not.
      • 5 Years Ago
      Bought F stock a year ago at $2.80 per share (190 shares). Keeping it for my retirement. Always wanted to buy a Mustang, bought some of the company instead.
      $532 investment worth $1710 now! Maybe it'll buy me that Mustang when I retire!
      • 5 Years Ago
      I am still kicking myself for not buying Ford stock when I could have gotten it for a little over a dollar. I was thinking about putting down $1000 on stock. I t would have been nice profit in a year. Oh well, as the article says maybe next recession.
        • 5 Years Ago
        lol next recession. we are currently in a upward trend, so it will be a while before ''next recession''. Because we would have to peak, then downward spiral, then recession. Or a plane crashes into a skyscraper and we could have it again in a months time.
        • 5 Years Ago
        absolutely. give it 3-5 years, and we will have ouselves a nice little downturn, once all the government stimulus run out and the base of the economy as we have now goes away, we will have another recession period before true, market driven growth resumes
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