Ford’s Stock: Going into Overdrive Or Headed for A Breakdown?
It's going to be a hot summer inside American car factories. Does that mean Ford's stock, up nearly 18% in 2013, will get even hotter?
Demand for American cars have picked up so much, the big three automakers have announced they're going to keep their assembly lines humming a lot more in July. Usually, auto plants close for two weeks around Independence Day to maintain and retool their machines. This year, however, Ford, GM, and Chrysler have each announced they will cut back their summer break. More consumers want more cars.
Ford plans on increasing its capacity by 200,000 more units this year. Reducing its summer break will increase production by 40,000 vehicles alone. While Fed Chairman Ben Bernanke testified on Capitol Hill today that employment remains an issue, Ford plans on adding nearly 3,500 jobs to work its factories.
Does this news for Ford translate to good news for you portfolio?
Richard Ross, Global Technical Strategist at Auerbach Grayson and a Talking Numbers contributor, says the charts show Ford revved up and ready to go. Steve Cortes, founder of Veracruz TJM, believes the fundamentals are a lemon.
Watch the video above to hear more of their reasons on if the stock is a buy or a not.