At $8 a Share, is Ford a Bargain?

After Ford stock fell yesterday I seriously considered buying some. I’m always looking for value in everything I buy and seeing Ford under $8 a share is really tempting. I preach to people all the time that if they want a vehicle that delivers great value and won’t break down on them to get a Japanese car by Honda, Toyota, or Subaru. So why would I buy Ford Stock, even if it is so low?

The answer is optimism. I’m hopeful that American car manufacturers will finally understand that the SUV driving, Hummer buying, buy American no matter what crowd is only one slice of America. I’m hopeful that after Ford and GM took a beating from the Japanese car makers like Toyota and Honda they will get their act together and start making cars with excellent gas mileage.

We’re also seeing change. Ford’s restructuring effort is reported to cut as much as $5 billion dollars in operating costs including cutting a lot of white collar office workers. The light at the end of the very long, completely dark corner is that Ford will be profitable again in 2009. My gamble on Ford is going to be a long one. I’ll keep you all in formed.