8/07/2003

Question for investors Company A makes cars for a market that runs from the bottom to the middle. The cars are good. Company B makes cars for the same market. The product is about the same. This means that price of end product will determine the buying decision in at least 75% of the purchases. Now Company A has a cost of benefits to their workers of $1,700 per car. Company B has a cost of benefits of $200 per car. Who will win the competition?

In this example Ford Motor Company is A and Toyota is B. Ford is giving rebates of thousands of dollars per car to stay in the race. Do you do what several big shot analysts have said, namely to buy Ford?

This is why you have to do your own homework. Ford must get a labor contract that allows them to close three factories that their UAW contract forces them to keep open or they may face bankruptcy. Ford? Ford? Yes, Ford.

Checking the info the way I look at information there is not one reason on the planet to buy this stock. The charts suck, profits suck, they have a few new products coming on line but so what? This is not a stock for the small investor, ever. Don't pay attention to the people who have multimillionaires as clients.

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