Topic: Growth Stocks

The Wall Street Stock Forecaster Hotline – Friday, April 3, 2009

Article Excerpt

FORD MOTOR CO., $3.25, New York symbol F, reported that its U.S. sales dropped 40.9% last month, to 131,465 vehicles from 222,337 in March 2008. However, sales were up 30% from the previous month. Ford has launched a new insurance plan that will cover a buyer’s monthly car payments for up to a year if they lose their job. This plan will probably hurt Ford’s earnings. However, Korean carmaker Hyundai uses a similar incentive to bolster its sales. Other carmakers, including General Motors, plan to follow suit. Unlike GM and Chrysler, Ford has not asked for government assistance. Ford could increase its market share if these competitors go bankrupt or cut production further. However, the bankruptcy of GM and Chrysler would probably force several parts suppliers to go out of business. A parts shortage would hurt Ford’s ability to keep operating. Ford is still a hold, but only for highly aggressive investors. MACY’S INC., $10.36, New York symbol M, recorded a $5.1-billion charge…