Ford Motor (F)

Has done very, very well for itself but is still facing a big headwind in Europe. They will lose $1 billion in Europe this year and until that is solved it is going to have some big problems. Average age of the US car is over 11 years so the cycle is very mature and he is looking for sales to increase but you have to let the macro issues sort themselves out. Have a lot of debt and a very large unfunded pension liability.

Their trucks are starting to pick up and are doing well but this is one of those more pure cyclical plays and he is not sure that we are in that part of the economy at this point. Below the 200 day moving average.

Has done a better job than anybody else in the auto sector. Shares are down mostly because of Europe where they have a large exposure. Car companies do not do well in recessions.

(Market Call Minute.) Getting cheaper now. He might be interested about $3 lower.

Ford or Tata? Developed Market. Tata has done an interesting job and have the low end to the high end. Ford’s F150 is a best seller for them. He doesn’t like buying OEMs.

Doesn't see a basing pattern on the charts as yet. You need to see a bit more of an extension on a sideways move. Trading below its 50 and 200 day moving averages. This is a pure cyclical and economically sensitive stock. Would prefer Tata Motors (TTM-N), a much higher secular growth company.

(Market Call Minute.)