We have never been stock market types here in The Garage’s northern office. We just haven’t gotten around to it. I’ll tell ya though, if ever there was a time, now is it. Ford has just announced that they are releasing 300 million shares for the whopping price of $0.01 each! Unlike the other Detroit two, Ford looks to be well on their way to recovery as they follow their own recovery plan.
Think about this for a moment. This stock IS going to increase in value. Let’s go on the conservative side and think that in a couple of years it might be worth 25 cents a share. If you’ve bought $1,000 worth of Ford Penny Stocks you now have $25,000 worth of stocks! Now I’m no stock broker, but I think that is a pretty solid investment.
Ford press release after the break
DEARBORN, Mich., May 11, 2009 – Ford Motor Company (NYSE: F) announced today a registered public offering of 300 million shares of its common stock at a par value of $0.01 per share. Ford said it also expects to grant to the underwriters a 30-day option to purchase up to 45 million shares of common stock.
Net proceeds to Ford from the offering are expected to be used for general corporate purposes, including to fund with cash, instead of stock, a portion of the payments the company is required to make to the Voluntary Employee Beneficiary Association (VEBA) retiree health care trust with the United Auto Workers.
“We continue to make strong progress on our transformation plan – gaining retail market share with great new products, improving quality, reducing costs and positioning Ford for a return to profitability,” said Ford President and CEO Alan Mulally. “Today’s equity offering is another example of the fast, decisive action we are taking as we build momentum on our plan, including further progress on improving our balance sheet.”
Citi, Goldman, Sachs & Co., J.P. Morgan and Morgan Stanley are acting as joint book-running managers of the offering.
Ford has filed a registration statement – including a prospectus – with the SEC for the offering to which this communication relates. Before investing, investors should read the prospectus in that registration statement and other documents Ford has filed with the SEC for more complete information about Ford and this offering.
Investors may obtain these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send the prospectus and the prospectus supplement upon request by calling Citi at (800) 831-9146; Goldman, Sachs & Co. at (212) 902-1171 or (866) 471-2526; J.P. Morgan Securities Inc. at (718) 242-8002; or Morgan Stanley & Co. Incorporated at (866) 718-1649.
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About Ford Motor Company
Ford Motor Company, a global automotive industry leader based in Dearborn, Mich., manufactures or distributes automobiles across six continents. With about 205,000 employees and about 90 plants worldwide, the company’s automotive brands include Ford, Lincoln, Mercury and Volvo. The company provides financial services through Ford Motor Credit Company. For more information regarding Ford’s products, please visit www.ford.com.
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I thought I would let you know that Bob Lutz just dumped 80,000 shares of GM as soon he was able. He was joined by 5 other GM execs. They were unable to sell any stock until they released first quarter results. The rats are fleeing the sinking ship.
I’m not an investment counselor but by my reckoning if Bob’s dumped 80,000 shares of GM, then he’s probably got enough money to grab a few hundred Ford shares
Seriously though, all the money which these guys have received from GM over the years, and now they cut and run, it just shows you that the almighty Dollar was all they ever cared about. I hope other companies pick up on this and leave them shamed & unemployed for the rest of their days!
I actually talked to my investment manager this morning to ask about this. Turns out its not available in Canada. But even still, how does this help Ford? It only amounts to $3M in offering which, as someone pointed out here, is about 10 seconds at Ford’s burn rate.
Sorry, you misunderstood this announcement. They’re actually selling the shares at $4.75/share. The “$0.01 par value” quoted in the release has nothing to do with the actual price of the shares – it’s just legalese that’s included in all stock offerings. Ford actually raised about $1.3 Billion from this stock sale.