Join Date: Feb 2001
Location: The Hills of North Georgia,USA
US:Ford shares rise
Ford shares rise, GM slips on Bear Stearns ratings
DETROIT -- Shares of Ford Motor Co. rose today while larger rival General Motors slipped after a Bear Stearns analyst changed his ratings on both automakers.
Peter Nesvold raised his rating on Ford to "outperform" from "underperform," and lowered GM to "underperform" from "peer perform."
"We believe most of the good news is behind GM but ahead of Ford," Nesvold wrote in a research note."
Ford shares rose 23 cents, or 3 percent, to $7.59 in morning trading while GM shares were off 6 cents at $30.05 on the New York Stock Exchange.
GM's benchmark long bonds were a touch lower and bonds of Ford's finance arm were slightly higher after Nesvold's change in ratings.
GM's 8.375 percent bonds due in 2033 fell to 83.125 cents on the dollar, down from 83.5 cents on Friday, Aug. 11; Ford Motor Credit's 6.32 percent notes due in 2007 rose to about 99 cents on the dollar, up from 98.625 cents on Aug. 9, their last reported trade.
GM, which lost $10.6 billion in 2005, is in the middle of a sweeping restructuring in which it has cut more than 30,000 jobs. The world's largest automaker also plans to close 12 plants.
GM shares have risen almost 55 percent this year, a sign that investors believe the automaker's turnaround is gaining traction.
"We believe investors are starting to conclude that GM's written the restructuring playbook for Ford," Nesvold said.
"We expect Ford to re-emerge in September with a more aggressive turnaround," he added.
Ford, which posted a second-quarter loss of $254 million and has hired an outside financial adviser, has said it will close 14 plants and cut up to 30,000 factory jobs to return its North American unit to profitability by 2008.
The automaker has said it will announce details of an accelerated version of its restructuring plan by the end of September.
Given GM's rise in stock price, Nesvold said he believes "investors will warm up in a hurry to a restructured Ford."
My first car was a 67 Mustang Coupe, 2nd one was a 67 Cougar XR-7, 3rd one was a 66 Mustang Coupe. Why did I get rid of these cars for ? I know why, because I'm stupid, stupid, stupid.
My next Ford.....