Ford Provides Details on 4Q17 Results—Turnaround On Track But Could Take A While
Ford Motor (NYSE: F) reported mixed results for the fourth quarter and full year 2017, reiterating its pre-announced results and guidance from the Detroit auto show earlier this month. Their turnaround under new CEO Hackett is in the early stages and remains on track. We don't anticipate meaningful financial progress for 2018 although the changes underway at Ford should become more visible.
Subsequent to the release, Ford announced that Ford Credit's current CFO, Marion Harris, will become a senior officer at Ford Mobility as that group ramps up its staffing and funding. Also, Ford Mobility acquired Autonomic and Transloc, two technology firms that will help accelerate Ford's mobility efforts. We like the urgency and attention that this group is now receiving.Automobiles & Components Large Cap
Identify & Profit from Distressed Investing
Turnaround Investing Blog
At first glance, the shares have decent appeal as a turnaround investment. Looking deeper, however, the fundamentals are not as strong and stable as they appear. Surplus cash flow is tight, a key driver is weakening, it is increasingly reliant on China and has other nagging issues. We don’t see the new CEO as a catalyst for change. Despite the “first glance appeal”, Tupperware isn’t a good fit as a turnaround stock.
Comparing Stocks Vs. Bonds
While the common stock of a turnaround candidate usually has the greatest upside potential, other classes of securities, such as bonds or preferred stock, may offer attractive profit possibilities with less risk. Many turnaround companies have only one class of securities available to investors but where there are different classes to choose from, it can pay to do a little extra analysis of the various options.
Turnaround Letter Stock Pick Named Top Performer of 2017
What Last Year's Top Stock Pickers Are Buying in 2018
This Forbes write-up follows up on the recent Top Stock Tips report--naming The Turnaround Letter's Crocs recommendation the top performer of 2017: With 90% gains, CROX beat out 100 other investment ideas included in the report; and the stock continues to have value investing appeal, according to Putnam.
George notes, "We see additional upside for the stock in 2018 as management's efforts continue to bear fruit, though the gains will likely be more muted than we saw in 2017."
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