Ford increases Focus production by 30% to meet demand...IT'S STARTING..BOY'S!!!

[rookieNYC]

The options I paid $25,500 for a few weeks ago closed today with a value of $62,000.

I forgot which poster here said that they couldn't buy a sandwich from stock gains but they could from cashflow..LOL..I truly love the markets...I'm going to start a thread on closed end funds for income based investors..

What I do and what fdjake is doing is highly risky..People should know that but all the same you don't put up what you can't afford to lose..And investors playing with scared money always lose...

Fdjake is behaving like a pro..He did his research,he placed his bet and now the waiting game starts..I'm in a similar scenario with the QQQQ and many closed end funds and reits that I bought at the bloodiest possible time..My past post reveal all my buys and recommendations..Buy em when they hate em...

Great play fdjake...Size !

[fdjake]

Rookie,

I've been watching that U.S. dollar call you made a while back!!  SPOT ON, as usual

For those of you who missed it.  Just as interest rates were being lowered like garage sale prices on a Sunday afternoon,  Rookie mentions that he thought the FED was finished lowering rates due to inflation issues.  Remember...at this time the dollar is falling like a rock.

Well, look at what's going on.  Prices are going through the roof on EVERYTHING but housing, and it looks like the Fed IS done lowering.
 
Rookie was right.... AGAIN!!

PLEASE....start the closed end funds thread!!

Oh......and NO, I won't be selling these options for a short money gain.
The plan is to let Ford's recovery gain momentum and sell when everyone else is piling in.
Ford's not out of the woods just yet.  I fully expect a few more losing quarters before they complete the turnaround.  That won't bother me in any way.  If the stock gets over sold like it did in March, I'll simply add to my postion.

My pay off is 2 to 3 years out on this.  Remember........In December of 2009 if Ford stcok is trading at $16/share I can buy that same stock for $7.50.
I fully intend to ride this.  the biggest mistake most new investors make is they sell their winners WAY to early.  If Ford does what I think it could.  I would not be surprised to see this stock in the mid 30's or higher within 3 years.  If I sold my options now I would have a gross profit of $36,500.
If I wait it out and Ford simply continues their already estiblished turn around, my options, when converted to stock could then be worth over $600,000.   My estimate of $30/share is based on a conservative comparison of Ford's stock price through out the history of the company.  It has been much higher than $30.  It may be of some interest to note that FORD has $45 BILLION in cash on hand and posted a $100 million PROFIT and is currently at $8.50/share while GM has $30 Billion in cash on hand and posted a LOSS but trades at $21/share. 

My feeling is Alan Mulally is setting a foundation for Ford that is comparable to what  Wendelin Wiedeking did at Porsche.  When Mr. Wiedeking took over at Porsche it was nearly bankrupt.  He did EXACTLY what Mulally is doing at Ford.  He ASKED people WHAT IS A PORSCHE??? The answer??  THE 911!!!

For years Porsche had been screwing around with water cooled cars.  928's, 944's and 924's... they had NO RESALE VALUE, and lowered the brands image in the eyes of buyers.  Wiedeking's answer???? Drop the water cooled cars from the lineup and put money into the 911. The classic 911 was the car that BUILT Porsche.  They came up with the 993 Carrera.  IT WAS A SMASH HIT!!  They followed that up with the BOXSTER.  Mid engined brother of the LEGENDARY 550 Spyder's that  CRUSHED bigger more powerful cars on road racing curcuits around the world in the 1950's.  THAT DID IT!!!!  2 GREAT cars, and PORSCHE could NOT keep up with demand!!!

RESULTS????

Porsche's stock went from $20/share to over $300/share in 5 years!!

"There isn't a problem a car maker faces that can not be resolved with GREAT product."

Again......this is how WEALTH is created.

[abc123]

I sell Fords at a big dealership in San Antonio. Come on down and DRIVE ONE!

[Liquidity]

Rookie,



  If I sold my options now I would have a gross profit of $36,500.
 

Im new to options but,
If its an option and the price is 7.50 + 1.20 aren't you in for 8.70 really ?? so you haven't really made a profit YET,  until it climbs over 8.70 ??



Great stock pick by the way 

[Tien]

Apparently Kirk Kerkorian the billionaire investor also thinks about Ford the same way fdJake does.


Kirk just announced he will looking to increase his ownership of ford to 5.6%.

[Dave T]

Liquidity,

fdjake probably paid $1 per share for each option contract he purchased.  I am guessing that the price of the option closed at $2.43 the other day, for a 143% return on his investment if he had liquidated. 

fdjake purchased the right to buy Ford stock at 7.50 per share at some time before his option expires in Jan 2010.  He paid an option premium of $1 so his total investment in Ford stock will be $8.50 per share when he decides to exercise his option.

As long as Ford is trading above $8.50 per share before his option expires, fdjake is "in the money".  He is betting that the price of the stock will be much higher and he seems to be planning to hold his stock for the long term once he exercises his option to purchase.

If he doesn't want to actually own the stock, fdjake can sell his option position to another investor for whatever price the market will bear.  Many investors will sell half of their option position once the option premium has doubled just to recover their investment.  They then let the other half of their position ride for infinite returns because they have no money invested in the position.

I was a little more speculative than fdjake.  I bought the Jan 2010 $15 call options at $0.35 per share.  Today, the option is trading at $0.57 per share.  I am also betting that the share price will be much higher than the $8.20 per share that it is trading at today.  If Ford stock gets to $9 per share within the next six months, I will probably liquidate my position for 100% profit or better.  In my case, time works against me.  I am betting on a quick move in the next six months to lock in my profits.  fdjake is betting on a long term trend upward, and he has already locked in his profit if he has guessed correctly about the direction of the trend.

[SugaB28]

RookieNYC, did you find it difficult beginning your re career in nyc?  Were you overwhelmed by the high prices or the commercial properties available?

Suga

[rookieNYC]

SugaB28,
 I have not done any recent purchases in NYC or the 5 boroughs in the last 5 years or more...We do own 2 commercial properties in Long Island City but as for recent purchases we have bought upstate NY...


fdjake,
  How do you like the US dollar rally...Did you see the recent Bloomberg article on how traders are buying the US $ in size...

http://www.bloomberg.com/apps/news?pid=20601087&sid=anL286vy_iZM&refer=worldwide

Also Buffet is coming out saying the worst is over for the credit markets and Wall street.....Buy em when they hate em...Hope everyone made size money...Where was the *supposed* market meltdown guys?

http://news.bbc.co.uk/2/hi/business/7382714.stm

fdjake I tried to start another closed end fund based thread and it was immediately taken down..I dont know why..

[tatertot]

Argentinians are swapping their pesos for dollars and moving their money out of Argentina. We are talking about a lot of money here, so they will soak up a lot of the free floating dollars that no one wants.

That's got to help prop up the dollar.

[fdjake]

Rookie,

I been watching the UUP you told us about months ago!!!  That index is just moving up everyday.

GREAT CALL!!!

As you predicted, it looks like the interest rate drops are over.

I completely agree with you.  The U.S. dollar WILL continue to move up because we are in and have BEEN in a recession.  The rest of the world is just now entering that phase.  The money that was LEAVING this country will be flowing back as more and more people see foreign economies hitting the skids.

Thanks for the advice....kepp it coming!!!

[smashmouth]

ok, so this topic spiked my interest. I'm goint to buy a VERY small amount, maybe 500 shares. 

I do not have any options experience. Do you recommend that I buy out-right?

thanks for your help.

[Pslreale]

Is this a Feeble Attempt to inflate Ford's Stock??   

[fdjake]

Yea,  you guessed it....my cover is blown.

I'm gonna make millions by posting a thread on a REAL ESTATE site that has had 1600+ views and probably 2 people who actually bought the stock!!!!!

WOW....that was EASY MONEY!!!

I'm not doing real estate anymore.  I'm going to rule the International Money Markets from my home PC, by using REI Club's web site!!

Ha, hahahhahhaahhahahhahhahhahhahahhahahhahhhaaa

My new name is........................... Dr. EVIL!!!!

[Liquidity]

Is this a Feeble Attempt to inflate Ford's Stock??   

someone please do something about this guy.  even  though his picture is worth a good laugh his posts and intentions on here a waste of time.

[mcprops]

I'm gonna be a millionaire by posting a thread that has had 1600+ views and probably 2 people who actually bought the stock!!!

Make that 3!