The John Batchelor Show

Brief

Simon Says Ford

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Simon Constable, Dow Jones video star, sits with Liam Denning, WSJ, of the dynamic Heard on the Street team. These are sensible, long-term investor thinkers. Unlike the stock-picking flippers who loiter on CNBC for thirty-hour trades.  Liam Denning likes Ford because it avoided bankruptcy and has put money in its product line going forward (see Ford Airstream electric hydrogen).   I follow his advice happily.  F does need to build better machines.  If F tries Volvo for a bench mark, then Ford (which still owns Volvo) will prosper. Try GM as a bench mark, and Ford is poison. At 6 bucks you can lose 6 bucks. For those of you who understand hedging, you sell the January 11 in the money puts, such as the 25s, the 20s. It is cautious gambling, but easier than buying the stock now. I like Ford as a recovery story. Like the narrative. Just build Volvo-like cars, guys, and don't take the Obama administration's hand-outs.

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