Positive Momentum for Ford (F)
"I'm looking at shares of Ford. This is the biggest gainer in the S&P 500 right now. That's ticker F. Keeping it easy for us there. Seeing its best day in almost four years. This is a company really signaling that it'll largely bounce back next year from a devastating fire that we did see at one of the key suppliers that of aluminum for its F-150 pickup truck. Of course, the company also talking about a profit beat here and a boost to production more generally. So, we are seeing shares up for double digit gains right now. But if you look on a year-to-date basis, shares of Ford are up about 41%. So, looks like it's a great day to be a Ford shareholder today."
The speaker discusses Ford's strong performance, noting it is the biggest gainer in the S&P 500 with a nearly four-year best day and a significant 41% YTD increase. Commentary highlights a forthcoming rebound expected next year after a supplier fire and a profit beat along with boosted production.
Ford Surges on Anticipated Supply Catalyst
"check out shares of Ford man on fire today. up the most in 5 years, up 12%. What are you >> bad choice of words? >> It’s doing well today. >> You know, I’m a little tired on this Friday. Okay. Um investors snapping up shares of Ford today, up 12% uh up the most in five years, more than 5 years. Company expecting its Nollis's aluminum factor, key supplier to Ford, as we know, to resume production as soon as late November and ramp up uh through the year end, earlier than initially expected. So listen, this is a big deal."
The speaker highlights Ford's strong performance with a 12% surge, attributing the rally to an anticipated restart of production at its key aluminum supplier, which could benefit the F-150 production. This commentary hints at a bullish outlook based on a near-term catalyst.
Ford Production Rebound After Earnings Beat
"Also in the green after earnings, Ford is up over one over 4% in the pre-market trade. They did beat on profit and investors were excited to hear they do have plans to boost back their F-150 and super truck production as it plots a rebound from a fire that took out a key aluminum supplier earlier this year that did hamper sales of its very highly profitable F-S series of pickups. On the back of that fire, they did cut their guidance, but it does seem to be that investors are comforted that they do have a rebound plan in order to get production back online. I mean, the CEO also had some pretty decent things to say on tariffs, saying the impact is looking more reasonable for the company. So, Ford up higher after this beat on profit, up 4%."
Ford is receiving upbeat commentary due to a profit beat and a clear plan to rebound production following a supply chain disruption, which has boosted investor confidence.
Ford Shares Jump Despite Caution
"On fire indeed. We are seeing shares of Ford jumping as much as 10%. The best day since 2022. This is after the company reported a profit beat and a boost to pickup truck production here. Uh, but we did see the company talking about an up to $2 billion profit hit. This, of course, we know coming after a fire at a key supplier of aluminum for its F150 pickup truck. So, that's something that investors are still continuing to parse, but nonetheless, we are seeing shares up more than 10% as we speak and year to date gaining about 37% here."
The commentary notes Ford's significant intraday gains driven by a profit beat and production boost, tempered by concerns over a potential $2 billion profit hit due to a supplier issue.
Ford Motor Company Capital Allocation Commentary
"Ford, a business that I’d already mentioned that Julian really liked, was partaking in what he felt was some subpar capital allocation... He believed that if Ford sales were to plunge, a leveraged buyout could occur at around $77 per share, which, given its mid-single-digit PE multiple, presented a compelling risk/reward profile."
Robertson highlighted Ford as a recession-proof play with low downside due to potential LBO activity and attractive valuation levels. His criticism of Ford's capital allocation and emphasis on buybacks implies that investors might benefit from reassessing Ford’s valuation and governance practices.