by Sam Collins | December 31, 2012 1:52 am
Ford Motor Co. (NYSE:F) — The second-largest producer of cars and trucks in the United States also has automobile financing and insurance operations. Analysts expected Ford to increase revenues this year chiefly from operations in the United States, China, and most European countries. But due to weakness in the first half of the year resulting from the return of competition from Japanese cars and worsening European and South American markets, earnings for this year are expected to fall to $1.36, down from $4.94.
On Oct. 17, with F trading at $10.31, the Trade of the Day said, “Technically, the stock appears to be forming a bottom with a breakout between $10.75 and $11. Supporting the positive opinion is a new buy signal from the MACD indicator. Buy Ford at the market.”
Those who followed that recommendation have profit of almost 25%. Since Ford is trading very close to S&P’s 12-month target of $13, is overbought, and is close to a major resistance line at $13, short-term buyers should nail down a profit today, taking advantage of this year’s lower tax rates.
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