Monday, October 23, 2006

Ford Posts $5.8 Billion Loss

$5.8 billion loss!! That is over 1/3 of Ford current market cap.

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Ford Co., in the midst of a massive restructuring of its North American operations, on Monday reported a preliminary third-quarter net loss of $5.8 billion, or $3.08 a share, representing the company's largest quarterly loss since 1992.

The auto maker also said it will restate earnings results dating back to 2001 to correct the accounting for certain transactions entered into to hedge interest-rate risk.

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To read further: WSJ.com.

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Source: Yahoo Finance.

Price per share: $7.90
Market Cap (intraday): 14.86B
Enterprise Value (23-Oct-06)3: 145.03B
Price/Sales (ttm): 0.09
Price/Book (mrq): 1.09
Enterprise Value/Revenue (ttm)3: 0.85
Enterprise Value/EBITDA (ttm)3: 13.065

Profit Margin (ttm): -0.92%

Return on Assets (ttm): -0.52%
Return on Equity (ttm): -9.51%

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Companies with poor net margin, poor ROE and ROA and capital intensive should be avoided.

Happy investing,

Dah Hui Lau (David)

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