May 31, 2012
The following video is part of our "Motley Fool Conversations" series, in which industrials editor/analyst Brendan Byrnes and consumer goods editor/analyst Austin Smith discuss topics across the investing world.
In today's edition, Brendan and Austin take a look at reasons that one might want to sell automaker Ford. If the situation in Europe were to get substantially worse, it could drag on Ford's bottom line even more. Ford is expecting to lose $500 million to $600 million in Europe this year, and a worsening situation there could exacerbate that. Another possible problem for Ford could be China, which the company is relying on for a big percentage of its future growth. If Ford doesn't make cars that are embraced by Chinese consumers, it could have trouble hitting its ambitious growth goals. Finally, Ford doesn't have to worry about a big union negotiation until 2015, but that's still a potential risk for the company going forward. Check out the video below for more on possible trouble signs for Ford.
Despite these reasons to potentially sell Ford, the company is incredibly cheap and looks like a solid long-term outperformer. But we've come across a different stock outside the manufacturing sector that has us so excited we can hardly contain our investing enthusiasm. This pick has so much promise that we've dubbed it "The Motley Fool's Top Stock for 2012." The report highlights a company that is revolutionizing commerce in Latin America, and you can get instant access to the name of this company by clicking here to download it now.