As the calendar flipped from 2010 to 2011, stock strategists routinely included both Ford (NYSE: F) and GM (NYSE: GM) among their top picks for the coming year. After all, both car makers had staged a remarkably recovery and looked poised to boost sales and profits at a continued robust pace. Seven months later, the wheels have fallen off, and each stock trades near a 52-week low. Judging by the stock price movements for both of these companies, you would think consumers are about to stop buying cars and trucks, as was the case in 2008. Will… Read More
As the calendar flipped from 2010 to 2011, stock strategists routinely included both Ford (NYSE: F) and GM (NYSE: GM) among their top picks for the coming year. After all, both car makers had staged a remarkably recovery and looked poised to boost sales and profits at a continued robust pace. Seven months later, the wheels have fallen off, and each stock trades near a 52-week low. Judging by the stock price movements for both of these companies, you would think consumers are about to stop buying cars and trucks, as was the case in 2008. Will this really be the case? After all, the economy was imploding in 2008. Now, it’s merely flat. Another question: if investors are being overly bearish about these automakers, then which one has the better looking stock right now? First, let’s take a quick look at how business is faring so far this year. Thee figures in the table below compare the first six months of 2011 with the first six months of 2010. One item quickly jumps out. Even though Ford and GM have both posted similar sales gains in the first… Read More