Word is that Ford is going to sell $500 million in stock. The purpose: To buy back debt from its credit subsidiary. Folks, no matter how you slice it, $500 million is a lot, and I really don’t think that dilution is what the shareholder needs right now. Very simply, even though the stock is trading at a lowly $4 and change, I wouldn’t touch it with a 10-foot pole. There are simply too many variables in this equation and I don’t see any catalysts on the near-term horizon that are going to turn things around.
Again, credit isn’t easy to come by, fuel prices are still high, and the competition is super stiff. Word that Toyota (TM) is now offering 0% financing on some models doesn’t get my motor running either.
Apple (APPL)
A quick gander at Apple's chart reveals the stock has just been brutalized. The good news: I think the shares are seeing a bit of a bounce back today. I wouldn’t break out the bubbly just yet, however: More and more people are starting to question the company and its future. Check out Apple: A Product Plateau, which discusses where the company could be headed on the product front. The article is likely to draw lots of eyeballs - and make at least some wonder if indeed Jobs can keep pulling rabbits out of his hat.
Again, I don’t want to bet against Mr. Jobs - I can’t help but think that things will be fine. But I’d still use a bounce at this point to bolt, and hopefully move on to greener pastures.
Family Dollar (FDO)
Looks like consumers are -- gasp! -- cutting back. As evidence, check out Family Dollar’s fourth-quarter numbers: It earned $0.38 per share, $0.04 north of the Street's expectations. Its revenue number “beat” as well. Plus its comps were up a healthy 5.6%. Very simply, if I were looking for some exposure to retail, this would be among my first stops. Good luck out there, folks. Make it a great day.
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