An earning scenario: What if Ford earns $3.35Billion in 2010 with 3.35Billion shares of stock = $1.00 per share earning at a Price/Earning (PE) ratio of (10?) would equate to a $10 stock price. Note the PE ratio of the S&P 500 stock index is currently about (18), rather high vs. (14) avg.

If Ford could earn $1Billion in this lousy economy and auto market, just imagine what they can earn with (6) new powertrain engines (1.6EB, 2.0EB, 3.5EB, 5.0V8, 6.2V8 and 6.7V8 Diesel) and a completely replenished productline within 2-years as the economy and auto market improves… $10Billion earnings per year is not that far out of reach…so run the numbers and Ford (F) could be a $20 stock in a few years… thats why I own thousands of shares (at $1.50) in my Roth IRA… tax-free baby!!!

Ford also said in exchange for extending their revolving $10+Billion credit line from 2011 to 2013 they will pay down over $2Billion and offer a $2Billion convertible note due 2016 in stock/cash at Ford’s discretion… all solid good moves well timed by Ford.

Hours after surprising Wall Street with a profit of nearly $1 billion for the third quarter, Ford Motor Co. announced plans late Monday to refinance a portion of its debt and pay it off in 2013 rather than in 2011 — a move that will give the automaker some breathing room in repaying its loans.

“The early response from our lenders to this approach has been very positive, with some of our major banks already agreeing to extend about $6 billion,” Lewis Booth, Ford’s chief financial officer.”

Please explain to me how they “pay off some debts early” while they report they are paying it off in 2013 vs 2011?

And for all the naysayers out there. Looks like THIS year will be a 10.3 -10.5 million sales year and somewhere north of 11.5 million for 2010. At least the latest forecast from another source, Toyota, says.

As I have said before the auto industry will lead the nation out of this recession.

As far as refinancing, Ford can do it but they will do it to reduce interest rates when their bank ratings improve. This is like refinancing your mortgage to a lower rate. Allows more cash in their pocket to invest or pay off debt.

“Bob Carter, group vice president for the Toyota Division, said industry sales this year will likely be between 10.3 million and 10.5 million. The industry will likely pick up next year to around 11.5 million to 11.7 million sales, he said.

“We’re seeing a good upswing in the second half that bodes well for the future,” Mr. Carter told a gathering of journalists.”

Thats $9+Billion of improvements to the $38Billion Auto ops debt side of the balance sheet with great timing on Q3 results plus an upgrade from a ratings agency… I’d say Ford (F) is a buy under $7…

The Caprice is awesome. We use it to go the beach… and all the toys just stay in the back. Why don’t they make cars like that anymore?

johnny- I’m guessing you sold the good ole’ Tracker then?

As far as Ford financials, you need to split them in (2) – Ford Auto ops and Ford Credit, big difference. Ford auto ops has about $28+Billion in debt and can (and will) issue new shares of (F) Stock to convert a lot of this debt (to equity), especially as the stock price continues to rise. Ford credit has its own (re) financing underway and regularly “rolls over” its debt to better interest rates (as their credit rating continues to improve) and in the credit market as rates stay low.

So NO Ford does NOT need to “pay off” any debt due by 2013, it can be converted to (F) stock as equity and (re) financed, so Borats numbers are grossly in error, Ford has $24+Billion in operating cash with “postive” cash flow. Plus, their (19) “PhD Whiz Kids” continue to deliver optimum pricing models as proof by Fords increasing transaction pricing to the tune of $1.9Billion… cool!

Note: If Ford can sell just 20,000 MKT’s next year, it will add $1Billion to (very profitable) revenue. Watch the sales numbers tomorrow, but be aware that Ford had to “shut down” the plant that makes MKT for 1-week and will lose thousands in production volume (thanks to parts shortage out of India.)

just a reminder, ford does not live in a vacuum with respect to parts suppliers, and the auto bailout served to prop up the ~25-30% of parts suppliers that would’ve gone bankrupt without gm still being in the market…in other words, ford did benefit from the bailout…

GM, go screw yourself even further, I don’t care!
GO FORD!!!

http://finance.yahoo.com/q/ks?s=F

On terms of 2013 short term debt, do you own research and don’t believe me: google Ford and 2013 pay note. See what comes up.

Looking forward to buying a Ford ASAP to reward this company’s hard work and morality. Ford people fly high; GM, hurry up and die.

At the end of the week we will have to see how all the marques did with market share in the 3rd quarter. Obviously Ford has increased while Toyota and Chrysler have most likely lost share. Believe GM is back on the upswing but not as much as Ford. Most important though as stated above is how much GM/Chrysler/Toyota/Honda are burning thru cash. GM has a lot available to them now and they have greatly increased vehicle development but they have to balance investment vs. income. No mention of cash burn form Ford above.

According to Ford corporate their “Automotive debt” is at $15.9b.

http://www.ford.com/about-ford/news-announcements/press-releases/press-releases-detail/pr-ford-completes-debt-restructuring-30154

Here’s to hoping that the credit market is better in 2013…