Friday, January 14, 2022

♟ Ford vs. Chevy? The Winner Is...

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1 Trade Idea Delivered Every Week, With an 83% Win Rate. Sound Too Good to Be True?

"Ford has taken the lead over GM and outperformed both GM and Tesla following several key developments."

Karim Rahemtulla, Head Fundamental Tactician, Monument Traders Alliance

Karim Rahemtulla

This may come as a surprise, but Ford (NYSE: F) has beaten the pants off General Motors (NYSE: GM) since the beginning of 2021.

Let's step back a minute.

At the beginning of 2021, GM's market cap was around $80 billion. Today, it is $88 billion.

At the beginning of 2021, Ford's market cap was less than $50 billion. Today, it is $100 billion after reaching a multiyear high yesterday.

Chart - GM Versus Ford Performance
 

That is a massive outperformance.

In fact, GM is now a better value than Ford, trading at a discount and a lower price-to-earnings valuation as well.

Both are downright cheap as far as future potential is concerned, especially when compared with Tesla (Nasdaq: TSLA), which is valued at a whopping $1 trillion (today, anyway).

Ford has taken the lead over GM and outperformed both GM and Tesla following several key developments.

  • Last year, Ford divested from several foreign operations that were losing money.
  • New management is focused on the electric vehicle sector.
  • Ford's Lightning pickup truck is garnering thousands of orders every month, despite not even being up for sale yet.
  • It isn't as impacted by chip shortage issues as other automakers.

Boom! 95% Overnight Gain on a Conn's "Win-Both-Ways Trade"

Conn's Daily
 

We just hit a near money-doubler within 24 hours on Conn's.

Regular investors lost 26%...

But my readers stuffed their pockets with a 95% gain.

See how we do it here..

Investors love low-priced stocks, and when Ford was trading for around $11, it was cheap.

I recognized this back in 2020 and 2021. War Room members racked up winner after winner on Ford with short-term trades.

But in dollar terms, the biggest win on Ford came from our Trade of the Day Plus readers.

Back in 2021, I made Ford my top pick in Trade of the Day Plus - and at Investment U, a conference I spoke at in Florida last spring.

Since then, shares have more than doubled. Just yesterday, a War Room member wrote in with this testimonial:

Michael K. 1/13/2022 at 11:05 a.m.
In at $11.44, out at $25.47 for 123% gain. Thanks, Karim.

War Room members who played my shorter-term strategies last year had this to say:

Scott G. 12/16/2021 at 9:33 a.m.
Ford Dec 17 2021 20 Call - in $0.45, out $0.90. Thanks, Karim, for that comment this AM!

Rick R. 10/8/2021 at 10:19 a.m.
Big shout out to Karim! After you suggested Ford as a good LEAP-style option, I jumped in Jan22 C at $1.34. Just sold half my positions at a 103% gain and am now playing with the remainder with house money. Nice double, Karim. Thanks!

That's just a sampling from the past few months!

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YOUR ACTION PLAN

Where do we go from here? Will Ford continue to power higher? The answer is yes, but not without a pullback or two, and that is what you should be looking for. For less than $20, Ford is a buy. But it's catch-up time, and GM might actually be the better buy on a pullback. Regardless of what stock is ripe for the picking, we'll cover it each Wednesday in Trade of the Day Plus! Join us now!

5G Stock CRUSHES Earnings!!

5G SuperStocks
 

Wall Street is loading up on shares of one 5G SuperStock (with more than $2 billion invested!).

Why?

Because the stock brings in more cash than IBM, Facebook and even Google! Yet it trades for just $3.

Get the scoop on the 5G SuperStock right here.

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FUN FACT FRIDAY

Since 1950, the S&P 500 has produced an average annual return of 14% following a year where it delivered a 25%-plus gain. As you can see below, over the last 70 years, the S&P 500 hit 25%-plus returns 17 times. And 14 of those times, stocks saw a positive return the following year. That means there is an 82% chance (according to history) that stocks will finish 2022 with gains.

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