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Ford's third quarter results were ahead of consensus expectations against a challenging supply chain backdrop
Thursday 11 Nov 2021 Author: Martin Gamble

Ford Motor Company $20.50

Gain to date: 193% 

Original entry point: Buy at $6.99, 13 August 2020

Saying to buy Ford shares in the middle of a restructuring during the pandemic was a calculated risk which has paid off.

The company has benefited from its own actions, refreshing the product range as it pivots to manufacturing more electric vehicles.

This seems to be working with Ford the top selling US automaker in the last two consecutive months boosting its market share.

This followed a strong third quarter earnings report where the company raised full-year guidance and restarted its dividend.

Ford has also made progress on repairing its balance sheet after a move to buy back expensive debt and improve its credit rating. 

It also plans to issue green bonds to increase investment into battery technology and clean manufacturing. The bonds would have coupons        of around 4%.

Furthermore, Ford holds a stake greater than 5% in electric truck maker Rivian which was scheduled to join the US stock market as Shares went to press.

SHARES SAYS: Although Ford’s shares have performed strongly, the fundamentals have also improved significantly. Remains a buy. 

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