Remember when Ford shares touched $1.01 a few months back and people were speculating about when the troubled automaker was "forced" into bankruptcy? Those days seem like a distant memory.
Especially now that Ford [F 3.77 
The latest piece of good news for Ford is the completion of a better than expected debt exchange.
When Ford announced this debt exchange a few weeks back, folks noticed Ford wasn't waiting for Washington to dictate the need to de-leverage. A few weeks later, Ford has bought $9.9 Billion in debt for $2.25 in cash and Ford stock. The company has dropped it's debt by 39%, going from $25.8 Billion to $15.9 Billion.
That reduction means Ford has cut it's interest payments by a half BILLION dollars. - CNBC Story
Wow, if you would have put what was left in your 401k into Ford stock at $1.01 a share you would be ahead of where you were when the economy started tanking.
The sad part is that Ford now has to compete with GM who is getting support from the Federal Government (our Tax Dollars). That is the problem with all of these bailouts, we basically are assisting the people that have made bad decisions and screwing over those that are doing the best they can in a bad situation.
Go Ford.
1 comment:
I don't think GM or Chrysler will do well with the bailout money. Bankruptcy still looms near for at least GM. Ford obviously has its act together and they are making some great cars. I'm still very much long on Ford.
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