Financial Gurus -- 'Splain Me This

Discussion in 'The Okie Corral' started by USMCsilver, Jan 28, 2010.

  1. USMCsilver

    USMCsilver Boat Life ©

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    Take Ford (F) for example.

    They had over 2 BILLION DOLLARS more in revenue than estimated.

    They beat earning estimates by 17 cents.

    But...the stock goes down.

    Why? :dunno:
     
  2. HexHead

    HexHead

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    People selling stock to take profits. Others don't think the gains are sustainable. The market is a fickle thing, driven by either fear or greed.
     

  3. buckhunter3987

    buckhunter3987

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    People had pretty much already assumed Ford was going to beat earnings, and bought it up early, so like already mentioned, people took profits.

    Also it has come out that Ford uses the same supplier as Toyota for their accelerator pedals.
     
  4. glockster99

    glockster99

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    In the financial world, there is no guru or expert....only winner or looser.
     
  5. USMCsilver

    USMCsilver Boat Life ©

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    Yeah, that's what I figurd on the 1st part. Just sucks to see it shrink. I'm sure a new, higher target will be obtained, soon.

    And, I just saw that a few minutes ago on the pedals.

    Odd they use the same ones. How hard would it be to fabricate your own stamped metal petal assembly? :dunno: Oh well.
     
  6. buckhunter3987

    buckhunter3987

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    I am not an expert so take this with a grian of salt. THIS IS NOT STOCK ADVICE.

    but if you were considering them as an investment the pull back would give you a better entry point. You can take advantage of the traders selling off good news to get in on a long term position. But that is only if you feel the will continue with these profits. I don't know, I really don't keep up with the market that much but lately tv has really sucked so when I am sitting here working on homework CNBC is on in the background.
     
  7. milglock707

    milglock707

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    In reality Ford could care less what their stock is doing at the moment because they do not see any of that money. Provided that the main shareholders are family members or investors who can wait it out till after the recession, then they should have nothing to worry about.
     
  8. Rabbi

    Rabbi The Bombdiggity Lifetime Member

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    It is one of the most basic rules, you buy the rumor and sell the news.
     
  9. USMCsilver

    USMCsilver Boat Life ©

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    My entry point was actually $2.09. :supergrin: :devildance:
     
  10. CZ guy

    CZ guy

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    Buy on rumor, sell on news. That's how it works.

    F has gone up $1.00 since the close on Jan 25th, that's nearly 9%.
     
  11. TurboRocket

    TurboRocket

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    To add to other comments, it's hard to judge one stock in isolation. The broader market is weak. S&P significantly broke through key support around 11:30 today, and closed slightly below key support at the end of the day. I don't think tomorrow will be pretty.
     
  12. JMS

    JMS 02

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    I got in less than you :tongueout:
     
  13. plasticpistol

    plasticpistol

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    buy the upcoming event. sell the news. kinda like the entire market right now. The interesting thing will be how much of this huge move up we retrace. typically it's 38-50%.
     
  14. MtBaldy

    MtBaldy Obie Wan, RIP

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    This:

     
  15. RenoF250

    RenoF250

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    Because there is no reason in stock prices. Buy a stock based on value and not the news and nonsense.
     
  16. Atlas

    Atlas transmogrifier

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    How hard is it to make a screw?
    A strip of rubber?
    To stamp a fender?

    The fenders for the F-250 are stamped about 125 miles from where you now sit. It isn't a Ford facility. It's done by a company called Magna. At the same plant they stamp body panels for BMW (for the South Carolina BMW assembly plant) and Mercedes (for the Mercedes assembly plant in Tuscaloosa, Alabama).

    Auto manufacturers have a complex evaluation system to determine what they will fab themselves and what they outsource. It's all about the bottom-line.
     
    Last edited: Jan 28, 2010
  17. Crazy KD

    Crazy KD

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    I gave up long ago trying to figure out individual stocks. When I can't even figure out why my own company, whom I know lots of inside information on, stock goes up when we have issues and goes down when we are doing well.

    If I can't even figure out my own stock there is no way I can predict how some unknown company's stock will move so I gave up on individual stocks.

    Funny story my dad was involved in some stock trading before the bubble burst and he was telling me how great this stock was doing he had bought. I asked him the stock and what they did. He didn't know anything other than their stock was doing well. I kept asking him details and I finally figured out it was Amazon. This is a fellow who didn't even own a computer at the time and yes he lost $ when the bubble burst.
     
  18. Wolfgang

    Wolfgang Millennium Member

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    buy on rumor;

    sell on the news