Key Points

• Ford wasted billions in their quest to manufacture and sell EVs no one wanted
• China isn’t anywhere near as profitable as the US
• The company needs to course correct immediately to avoid disaster
• Instead of chasing dying companies like Ford, look at ‘The Next Nvidia’ stocks, which couldn’t be doing better.

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[00:00:00] Lee Jackson: Because the other side, you know, as we’ve discussed on numerous occasions, it’s okay, the F one 50 is a gold mine and, and the multiple versions, the King ranch F one 50 and the, the gigantic super F one 50. I mean, the, the, you’ve got a gold mine. So cut, cut your losses down to a, an acceptable level on Evie till, you know, it’s more a part of the mainspring in 2050,

[00:00:27] Doug McIntyre: right?

[00:00:28] Doug McIntyre: And they, and right now. They need to jettison a lot of the work that they’re doing on those things. I’m going to give you an anecdote. Somebody I work with bought, decided they wanted an EV. So they decided they were going to get one of these Mustang Mach E’s. Oh, how’s that? We’re going to the dealership.

[00:00:46] Doug McIntyre: Nice car. The first thing they do is they offer them 10, 000 off the MSRP. There you go. First thing, which makes it what? 65, 000. No, I don’t know which, which one he bought, but the minute, when you walk in the dealership and they offer you 10 grand off, it’s, it’s, they’re begging you to ask for an even better deal.

[00:01:08] Doug McIntyre: Yeah. He got a, he got a free garage charger and all this stuff. There you go. So once again, I think that Ford is looking at losing. Tens if not hundreds of thousands of dollars on every single EV that it, um, sells. Uh, these numbers say that they’re, you know, they’re okay. I mean, the stock is really sliding now that they’re okay in the gas powered car business, but to me, they’re locked out of China.

[00:01:40] Doug McIntyre: Basically, there’s no money to be made in China anymore. And there used to be a ton of money to be made there. Yeah, it was, they’re trapped in the United States. The best way to look at Ford right now is they’re trapped in their home market and there’s nothing that they can do about it.

[00:01:56] Lee Jackson: Yeah. I, I don’t think there is.

[00:01:58] Lee Jackson: And. You know, it’s shame when you have a, a, a legacy industrial car company that Henry Ford started, you know, in 1902 or three or whatever it was, and, and literally built it to it. It changed American industry, Henry Ford. Changed American industry and you know, you, you and I both grew up outside of Detroit.

[00:02:23] Lee Jackson: We saw it, we saw what it did, and their lack of forward vision has always been the problem. And face it, they, they fired one of the greatest car designers ever. The, the man de designed and put on the road the Ford Mustang was fired. And you know, that started a 60 year downtrend that they’ve yet to reverse.

[00:02:47] Doug McIntyre: No, and they haven’t. No, well, listen, we’ll have plenty of time to come back to Ford. They’ll I’m sure there’ll be just more and more bad news between now and the next quarter. But, uh,

[00:02:56] Lee Jackson: and again, once again, is there going to be a point unless Farley can cut that loss? Is there going to be a point when they cut the dividend?

[00:03:04] Doug McIntyre: I have to worry about you have to worry about cutting the dividend. I mean, what’s the uh, I think it’s a

[00:03:12] Lee Jackson: dollar per share and and that’s a lot so It’s you know, if i’m a ford shareholder there There’s a point if if quarter after quarter after quarter is bad. You’ve got to think

[00:03:23] Doug McIntyre: that comes into play I think that comes into play which the ford family is is going to go, you know, they don’t want to cut it They’ll go great so for forward Yield 5.

[00:03:35] Doug McIntyre: 42%. They’re not going to keep that. They haven’t, they run into any cash problems at all. That the minute that goes, the stock goes back down again. So results take it down. Dividend takes it down. This stock trades in array. I’ve been trading in a range of like nine 50 to 14 bucks in the last 52 weeks. My prediction is by the end of the year, it’s below nine 50.

[00:04:01] Lee Jackson: Oh, I don’t think there’s any question about it.

[00:04:04] Doug McIntyre: There you go. Okay.

 

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