InvestorPlace – Stock Market News, Inventory and Trading
It turns out that all the hype surrounding Tesla (NASDAQ: TSLA) and Nikola (NASDAQ: NKLA) has diverted the attention of classic carmakers like Ford (NYSE: F) and because of that, I’m worried that investors will miss a more sensible opportunity at F-share with the release of the fourth quarter results on July 30.
As I write this, the F-share is quoted precisely at $7, and is now just below that mark. The taurine’s thesis is that the inventory has already been punished by the crisis of the new coronavirus. Fear and disgust have already been taken into account, and the name bounces.
However, bounces do not occur without some kind of catalyst. That said, the next profit chance may be this catalyst. If it’s an explosion of profits, then maybe the commercial network will take a look at Tesla and Nikola for a while and give Ford the attention it deserves.
Not being a conspiracy theorist, I suspect the feature market could be related here. Option investors are known to “fix” inventory values in a number to get what they call “maximum pain.” And by moving the percentage value to a specific dollar amount when features expire, they can extract as much cash as possible from feature retailers.
This may sound crazy, but keep in mind how the F-share in summary reached $7 in early June, only to be temporarily rejected. It is a ruthless market, full of pretensions and damaged dreams.
Can a benefit marvel at investors to offer F shares above the $7 pain point? No one knows for sure, but low expectations can do wonders in creating actions to get unforeseen results.
When other people start saying that anything in the markets is “obvious,” it’s their signal to bet on the opposite side of trade. History has shown that “obvious” effects are incorrect in many cases, such as Brexit and the 2016 pre-watch election.
Of course, Whiston’s considerations are something we haven’t heard before. Yes, debt is something to consider. But, like many money analysts, Whiston is too busy to think hard about Ford’s quarter:
“At the end of the day, what I need to know is how much debt can you pay until the end of the year? Matrix … What will be the capital design at the end of the year?”
Opposing the consensus of analysts is an ambitious resolution that is not advised to all investors. If done and after much due diligence, it can be a very lucrative and satisfying expression of a resolute countermism.
But wait, the scenario is getting worse: they also expect an annual decline of 59.85% in quarterly revenue. This is what I would call pessimism at its best.
Meanwhile, it has already become public that at the time of the 2020 quarter, Ford recorded its most productive retail percentage in five years. The F-series, Ranger and Explorer were especially strong in this regard.
So, if analysts have an incredibly disappointing outlook for F-share, I’m more than happy to present a long position. To a real surprise, this is the “obvious” answer.
The F-action can be set to $7 at this time, however, it cannot last forever.
David Moadel has provided compelling content, and crossed the final line, on behalf of Crush the Street, Market Realist, TalkMarkets, Finom Group, Benzinga and (of course) InvestorPlace.com. He is also chief analyst and market researcher for Portfolio Wealth Global and presents the popular youtube monetary channel Looking at the Markets. At the time of writing, David Moadel did not hold a position in any of the previous titles.
The message Why $7 will be a remote reminiscence after Ford’s stock gains first gave the impression on InvestorPlace.