Friday, July 23, 2010

Ford "Headgame Wording"

Ford (F) released great numbers but a few items need some scrutiny. The wording of the earnings release plays a few mind games. Take note of this one after explaining most of the current financial issues.

“Take actions to strengthen its balance sheet and become investment grade” Nice motherhood statement. Was this just a throw in or are they planning something else? The automotive side is to become debt free so what is to become investment grade?

Next item “Expand its business, particularly in the growth regions of the world, such as China and India” The China and India story are old news. Getting a little tired of hearing the same old refrain. By omission the question becomes what are you doing in still large and lucrative markets of North America and Europe.

Will there be enough resources to capitalize on opportunities and defend existing market shares?

Disclosure: No position in any stocks mentioned in this post.