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Ford's 800-Pound Gorilla Should Make Your Skin Crawl

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March 5, 2013 | Comments (7)

In the following video, Motley Fool industrials analyst Blake Bos takes a look at Ford (NYSE: F  ) and its pensions. While Ford's case is that rising future interest rates will cause the company's notoriously underfunded pension to become a surplus, Blake feels that isn't telling the whole story. He delves into some of the numbers in Ford's pension issues and tells investors why there may be cause for concern.

Ford has been performing incredibly well as a company over the past few years -- it's making good vehicles, is consistently profitable, recently reinstated its dividend, and has done a remarkable job paying down its debt. But Ford's stock seems stuck in neutral. Does this create an incredible buying opportunity or are there hidden risks with the stock that investors need to know about? To answer that, one of our top equity analysts has compiled a premium research report with in-depth analysis on whether Ford is a buy right now and why. Simply click here to get instant access to this premium report.

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Blake Bos has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Ford. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


Read/Post Comments (7) | Recommend This Article (17)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On March 05, 2013, at 11:39 PM, Safety77 wrote:

    I think we as Americans are the fools because

    we have no clue whats going on..

  • Report this Comment On March 06, 2013, at 7:56 AM, jessysidhu1 wrote:

    I was looking for my 800lb gorilla. Has anyone seen it?

  • Report this Comment On March 06, 2013, at 8:36 AM, k50mtzga wrote:

    Good job Blake' but slow down with the infomation I'm trying to get over the gorilla attack.

    cj

  • Report this Comment On March 06, 2013, at 8:52 AM, JTurpin21 wrote:

    Ridiculous...Ford took no bailout money and is doing well in terms of cashflow...why the shocking title to the article to try to make it look like a bad buy? Media...you guys are runining the country.

  • Report this Comment On March 06, 2013, at 9:35 AM, rkba wrote:

    actually, turpin, THEY DID, albeit quietly in the guise of "retooling and upgrading expenses". all three automakers took bailout money. instead of blaming the media, research first.

    as of august 2012, ford is/was the only one of the three still owning money, to the tune of 5.9 billion...

  • Report this Comment On March 06, 2013, at 9:46 AM, Jazzenjohn1 wrote:

    your comment that Ford's expected rate of return is optimistic presumes they will keep their asset mix unchanged from now on. That is a pretty unrealistic assumption. You also don't go into any detail about the companies push to get rid of their pension obligations through buy outs. It has already begun with salary workers, which makes it a near certainty it will be moved to hourly workers at some point if it is at all successful. All the 150,000 new hourly workers hired by the big three in the last 5 years don't have pensions. I don't think it's an 800 pound gorilla, maybe a 300 pound one that's losing weight...

  • Report this Comment On March 06, 2013, at 2:12 PM, alte3 wrote:

    The only thing that should make your skin crawl is the fact that investors want to steal pensions that employees have earned. A company should exist to take care of it's most valuable assets first (employees) and stock holders second.

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