In February, short sellers moved out of General Motors (GM) and into Ford (F). The short interest in GM dropped 9 million shares, but at Ford shares short jumped 15 million.
Wall St. was smart. Since the beginning of the year, GM’s shares are up almost 17%, while Ford’s are up a little over 10%.
The market is still concerned about two things with Ford. The first is that the company says that its US market share could drop as low as 14% in the next two years. The second is that the company has taken on an additional $23 billion in debt. But, the head of the UAW is lobbying the media saying that Ford is fine. It is a self-interested statement based on positioning the big union for its upcoming negotiations with The Big Three. A healthy Ford can continue to pay big health benefits and pension contributions.
The market knows better.
Douglas A. McIntyre can be reached at [email protected]. He does not own securities in companies that he writes about.
Essential Tips for Investing (Sponsored)
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
